Malaysian businesses can now choose from several renewable electricity procurement pathways, each offering different commercial, operational and sustainability benefits.
Depending on your business needs, you may consider the Corporate Renewable Energy Supply Scheme (CRESS), the Green Electricity Tariff (GET), an on-site Power Purchase Agreement (PPA), or Renewable Energy Certificates (RECs).
Each option operates differently. This guide outlines the key eligibility, cost and reporting considerations to help your business identify the renewable energy procurement pathway best suited to its needs.
Why Corporate Green Power Procurement Matters Now
Electricity can represent a significant part of a company’s Scope 2 greenhouse gas emissions. Procuring renewable electricity can therefore support Scope 2 reduction targets and provide the contractual and environmental attribute evidence required for credible market-based reporting.
For multinational companies and businesses participating in initiatives such as RE100, access to credible renewable electricity procurement is important for progressing towards commitments to use 100% renewable electricity. It is also increasingly relevant to manufacturers and suppliers responding to sustainability requirements from customers, investors and corporate groups.
Exporters of goods covered by the EU Carbon Border Adjustment Mechanism (CBAM), together with businesses supplying EU-facing value chains, have an opportunity to strengthen their emissions management and demonstrate greater transparency across their operations and products. Renewable electricity procurement should not automatically be assumed to reduce CBAM embedded emissions. Any effect depends on the applicable product methodology, installation boundary, permitted evidence and verification requirements.
The most suitable procurement option will depend on your business’s electricity demand, voltage level, location, available space, budget and sustainability reporting objectives.
The Options at a Glance
The table below provides a simple comparison of the main corporate green power procurement options available in Malaysia. As each business and project is different, factors such as eligibility, programme availability, grid capacity, pricing, contract terms and sustainability reporting treatment should be considered carefully before selecting the most suitable option.
| Mechanism | How it works | Eligibility and scale | How electricity is supplied | Key commercial components | Generally best suited for |
| CRESS | An eligible Green Consumer buys renewable electricity from a Renewable Energy Developer under a Bilateral Energy Supply Contract. A new off-site plant exports power through CRESS and NEDA. | Registered medium- or high-voltage consumer in Peninsular Malaysia. The new Green Energy Plant must have at least 30 MW export capacity and a direct grid connection. | Renewable electricity is wheeled through the shared grid. The utility provides last-resort supply for any shortfall. CRESS does not use a dedicated private line to the consumer. | Bilateral electricity price plus applicable CRESS and market charges. SAC is charged to the developer: 20 sen/kWh for firm supply and 40 sen/kWh for non-firm supply. The contract determines any cost pass-through. | Large medium- or high-voltage users needing more renewable electricity than on-site solar can provide. |
| GET | A TNB subscription supported by Malaysia Renewable Energy Certificates (mRECs), without requiring a dedicated renewable energy project or developer negotiation. | Available to eligible TNB consumers, subject to assessment, quota and programme terms. Certain eligible non-domestic tenants may use GET Greenpath. | Grid electricity continues through the existing TNB account. mRECs are redeemed for the subscribed quantity. | Normal electricity tariff plus a GET premium of 5, 4 or 3 sen/kWh for a 1-, 2- or 3-year term. Monthly GET charges are based on the subscribed amount or actual consumption, whichever is lower. | Businesses seeking a straightforward option for multiple, leased or smaller sites, or shorter implementation timelines. |
| On-site solar PPA | A developer typically finances, owns and operates solar at the customer’s premises, while the customer buys the electricity generated under an agreed PPA tariff. | Subject to site, load and technical feasibility. No general non-domestic capacity limit under SELCO. Systems above 72 kWac require a connection assessment; systems exceeding 1 MWac generally require at least one-hour BESS, subject to exemptions. | Solar electricity is generated and consumed behind the meter. Export to the grid is not allowed under SELCO, and the utility supplies any remaining demand. | Agreed PPA tariff plus continuing utility charges for residual grid use. Technical studies, BESS, licensing and compliance requirements may affect overall project cost. | Businesses with suitable rooftops, car parks or land, strong daytime demand and long-term control of the premises. |
| Unbundled mRECs / other RECs | Renewable energy certificates are purchased separately from physical electricity. One mREC represents the environmental attributes of 1 MWh of renewable electricity delivered to the grid. | Subject to certificate availability, registry or platform rules, technology and vintage selection, and the purchaser’s reporting criteria. No voltage or project-size threshold applies. | The customer’s normal utility supply is unchanged. The REC transfers renewable energy attributes only, not physical electricity. | Certificate or auction price plus transaction costs. Certificates should be redeemed or retired for the purchaser to prevent double counting and cannot be resold after retirement. | Residual consumption, multiple or leased sites, or interim coverage where direct renewable electricity procurement is not yet practical. |
CRESS: Physical Off-Site Green Power Through Third-Party Access
How CRESS Works
The Corporate Renewable Energy Supply Scheme (CRESS) allows an eligible business, known as a Green Consumer, to purchase renewable electricity from a Renewable Energy Developer operating a new off-site Green Energy Plant in Peninsular Malaysia.
CRESS provides for the physical supply of renewable electricity via Third-Party Access to the existing electricity network. The renewable electricity is exported into the national grid and accounted for under the CRESS framework and the New Enhanced Dispatch Arrangement (NEDA).
As the electricity grid is shared, power from the renewable energy plant does not travel through a dedicated line directly to the Green Consumer’s premises. The utility continues to supply electricity whenever the renewable generation allocated under CRESS is insufficient to meet the customer’s demand.
A CRESS project involves several connected agreements covering bilateral electricity supply, grid access, NEDA participation and last-resort supply. These agreements should be reviewed together to ensure that pricing, energy allocation, billing and project risks are clearly addressed.
Eligibility, Project Size and System Access Charge
The Green Consumer must generally be a registered medium-voltage or high-voltage consumer in Peninsular Malaysia. The Renewable Energy Developer must satisfy the applicable eligibility requirements, including at least 51% Malaysian ownership, while the new Green Energy Plant must have a minimum export capacity of 30 MW and connect directly to the electricity network.
The CRESS System Access Charge (SAC) is charged to the developer based on the electricity exported to the grid.
For the fourth regulatory period, the published rates are:
- 20 sen/kWh for firm supply; and
- 40 sen/kWh for non-firm supply.
Where a Green Energy Plant cannot otherwise meet the Firm Output requirement, the Renewable Energy Developer must generally provide directly connected energy storage with an MW capacity of at least 50% of the lower of the plant’s registered capacity or pre-commercial tested capacity, capable of four (4) consecutive hours and dispatchable by the Grid System Operator. Otherwise, the higher non-firm SAC applies.
Advantages and Limitations of CRESS
CRESS can provide:
- access to utility-scale renewable electricity beyond the limits of on-site solar;
- a direct contractual relationship with a Renewable Energy Developer;
- potential long-term electricity price visibility; and
- renewable electricity at a scale suitable for large or growing energy users.
However, CRESS also requires grid capacity, regulatory approvals, coordinated multi-party agreements and a long-term commercial commitment. The parties should carefully allocate risks relating to project delays, generation variability, curtailment, credit exposure and regulatory changes.
The renewable energy attributes initially belong to the developer and may be transferred under the bilateral agreement. The contract should therefore address certificate ownership, issuance, transfer, retirement, reporting periods and the treatment of any generation shortfall.
Who CRESS Suits
CRESS is generally best suited to large medium-voltage or high-voltage electricity consumers that require more renewable electricity than an on-site solar system can provide. This may include manufacturers, data centres, semiconductor facilities, multinational companies, exporters and businesses with substantial or growing electricity demand.
It may be particularly relevant where the business has limited rooftop or land space, requires renewable electricity at scale and is prepared to enter into a long-term arrangement with a Renewable Energy Developer.
GET: A Simple Utility Subscription Option
How Green Electricity Tariff Works
The Green Electricity Tariff (GET) allows eligible TNB customers to support their renewable electricity goals through their existing electricity account. Customers continue receiving electricity from the grid and pay the normal tariff together with the applicable GET premium.
The subscribed amount is supported by Malaysia Renewable Energy Certificates (mRECs) redeemed for the customer, subject to quota availability and programme terms. No solar installation, project site or direct agreement with a renewable energy developer is required.
Current GET Pricing and Subscription Features
From 1 July 2025, the applicable GET premium is:
- 5 sen/kWh for a one-year subscription;
- 4 sen/kWh for a two-year subscription; and
- 3 sen/kWh for a three-year subscription.
The GET premium is charged in addition to the customer’s normal electricity tariff. Monthly GET charges are generally calculated based on the subscribed amount or the customer’s actual electricity consumption, whichever is lower.
Subscriptions remain subject to quota availability, TNB’s assessment and the terms of the GET Agreement. Before subscribing, businesses should review the subscription period, renewal conditions, termination charges, mREC arrangements and the treatment of any unused subscribed amount.
GET is simpler to implement than a dedicated renewable energy project, although customers have less control over the underlying generation source and cannot negotiate a project-specific electricity tariff with a developer.
PPAs: On-Site, Off-Site and Virtual Structures
A Power Purchase Agreement (PPA) is a commercial contract for the purchase of electricity rather than a standalone government programme. Its regulatory treatment depends on where the energy project is located, how the electricity is supplied and the applicable Malaysian framework.
On-Site Solar PPA
Under an on-site solar PPA, the developer typically finances, installs, owns and operates a solar system at the customer’s premises. The customer purchases the solar electricity generated at an agreed tariff, while the utility supplies any remaining electricity required.
For SELCO projects in Peninsular Malaysia, the revised June 2026 SELCO Guidelines require grid-connected solar electricity to be consumed within the premises, with no export to the utility network. Non-domestic installations have no general capacity limit, subject to applicable technical and regulatory requirements.
Installations above 72 kWac require a connection assessment study, while installations exceeding 1 MWac generally require a BESS with at least a one-hour rating, subject to the exemptions and transitional provisions in the Guidelines.
Where the system owner supplies electricity to the customer within the same premises, the June 2026 SELCO Guidelines require the owner to hold a public distribution licence. Businesses should review site and landlord rights, structural suitability, zero-export controls, performance obligations, environmental attributes, financing terms and end-of-term ownership or removal.
Off-Site Physical PPA and Virtual PPA
For eligible businesses seeking physical off-site renewable electricity through the Peninsular Malaysia grid, CRESS is the principal current framework.
A virtual PPA is a financial arrangement rather than direct physical supply.
These arrangements should not be treated as interchangeable, as they differ in electricity delivery, pricing, settlement, regulatory requirements and renewable energy certificate treatment.
RECs and mGATS: The Environmental-Attribute Layer
A Renewable Energy Certificate (REC) represents the renewable attributes of renewable electricity generation. Under Malaysia’s Green Attribute Trading System (mGATS), one Malaysia Renewable Energy Certificate (mREC) represents 1 MWh of renewable electricity delivered to the grid.
RECs may be purchased together with electricity or separately as unbundled certificates. An unbundled REC does not change the electricity physically supplied to the customer. Instead, it transfers the renewable attributes of electricity generated elsewhere.
For credible reporting, RECs should be issued through a recognised registry and retired for the relevant company and reporting period. Businesses should retain certificate and retirement records and ensure that the same attributes are not claimed more than once.
How RECs Support Scope 2 Reporting
RECs may support the market-based Scope 2 method where they meet the applicable GHG Protocol quality criteria and are matched to the correct reporting entity, market, electricity quantity and reporting period.
They do not change a company’s location-based Scope 2 result, demonstrate that renewable electricity was physically delivered directly to its premises, or operate as carbon offsets.
Unbundled RECs may be useful for residual electricity consumption, leased premises, smaller sites or as an interim measure while longer-term renewable energy projects are developed.
How to Choose: A Practical Decision Framework
The most suitable green power procurement option should be assessed against the business’s operational needs and the evidence required for its intended sustainability claims.
- Electricity profile: Review the voltage level, annual and half-hourly consumption, peak demand, number of electricity accounts and expected growth. CRESS is generally designed for larger medium-voltage or high-voltage consumers, while GET and RECs may be accessible to a broader range of businesses.
- Site availability: Suitable rooftops, car parks or land, together with strong daytime electricity demand, may support an on-site solar PPA. Businesses with limited space may need to consider CRESS, GET or RECs.
- Implementation timeline: GET and unbundled RECs can generally be implemented more quickly. On-site solar and CRESS projects require technical studies, approvals, financing, grid coordination and construction.
- Total commercial cost: Compare the complete cost of each option, including the System Access Charge, grid and market charges, battery requirements, certificates, security arrangements, price indexation, termination exposure and change-in-law risk, not only the headline electricity tariff.
- Reporting objective: Determine whether the business is seeking annual renewable electricity matching, market-based Scope 2 reporting, RE100 alignment, customer or supply-chain reporting, product-level emissions data or compliance with a specific regulatory requirement.
Can Your Business Combine More Than One Solution?
Yes. A business may combine several procurement options to address different sites, consumption profiles and sustainability objectives.
For example, a manufacturer may use an on-site solar PPA for daytime consumption, CRESS for demand that cannot be met by its available rooftop space, and GET or retired mRECs for smaller locations or residual electricity use. A data centre may combine CRESS with battery storage and use GET as a transitional or supplementary solution.
Any combined strategy should clearly allocate the renewable energy attributes, match certificates to the correct reporting boundary and prevent double counting.
Frequently Asked Questions (FAQs)
1. What is the current CRESS System Access Charge (SAC)?
For the fourth regulatory period, the published SAC is 20 sen/kWh for firm supply and 40 sen/kWh for non-firm supply.
2. Can a business obtain 100% renewable electricity without rooftop space?
Yes. Subject to eligibility, quota and certificate availability, a business may procure or match renewable electricity for all or part of its annual consumption through CRESS, GET or properly retired RECs.
This represents a contractual or accounting match supported by renewable energy attributes. It does not necessarily mean that renewable electricity physically supplies the premises at every hour of the day.
3. Should a business choose CRESS or on-site solar first?
On-site solar is often a practical first step where suitable space and strong daytime demand are available, as it directly reduces grid electricity consumption. CRESS can then supply additional renewable electricity beyond the site’s capacity.
The best approach should be based on load profile, site feasibility, total cost and reporting objectives.
4. Do RECs count toward Scope 2 emissions?
RECs may support market-based Scope 2 reporting when they meet the applicable GHG Protocol quality criteria and are properly matched and retired for the correct entity, market, quantity and reporting period.
They do not change the company’s location-based Scope 2 emissions, which are calculated using the emissions profile of the local electricity grid.
How Avera Energy Can Support Your Business
Avera Energy develops, finances, owns and operates solar and battery assets across Malaysia and Southeast Asia, covering project origination, design, grid integration, financing, construction and long-term asset management.
- Commercial and industrial on-site solar and PPAs;
- CRESS and utility-scale renewable energy development;
- Battery Energy Storage Systems and energy optimisation;
- Load, site and feasibility assessment;
- Renewable energy procurement and PPA structuring; and
- Long-term operations and performance management.
Avera Energy can assess your electricity data, site constraints, growth plans and sustainability requirements, then structure an appropriate mix of on-site generation, off-site procurement, storage and environmental attributes.
| Speak to Avera Energy Build the right green power portfolio for your business. Speak to Avera Energy today to assess your electricity needs, available sites and renewable energy procurement options. |
