NEM vs Solar Atap Malaysia (2026): Key Differences Explained
Malaysia’s rooftop solar landscape has undergone a major shift following the end of the Net Energy Metering (NEM 3.0) programme on 30 June 2025.
From 1 January 2026, the government introduced the Solar Accelerated Transition Action Programme (Solar ATAP) as the new framework guiding rooftop solar adoption for both residential and commercial users.
This guide explains what Solar ATAP is, how it differs from NEM, and what it means for your solar investment in Malaysia today.
What is Solar ATAP?
Solar ATAP is Malaysia’s latest rooftop solar programme designed to accelerate solar adoption while prioritising self-consumption.
Solar ATAP focuses on using the solar energy you generate directly. This helps reduce electricity bills more effectively, rather than relying on exporting excess energy to the grid. The programme also promotes rooftop optimisation, ensuring solar systems are sized appropriately to match your actual energy usage.
This approach supports Malaysia’s long-term goal of increasing renewable energy capacity to 70% by 2050, while maintaining a stable and reliable power grid.
Why Was Solar ATAP Introduced?
Solar ATAP was introduced to replace NEM and address several limitations of earlier solar frameworks:
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- To encourage greater self-consumption of solar energy
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- To allow more flexible solar system sizing based on actual demand
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- To move away from subsidy-driven adoption towards market-based mechanisms
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- To improve long-term grid stability and efficiency
This marks a transition from a quota-driven model to a more fundamentals-based approach, where solar adoption is driven by real energy usage and operational needs.
Key Differences Between NEM vs Solar Atap
1.How You Are Credited for Extra Solar Energy
Under NEM, homeowners received a 1-to-1 bill credit, meaning every unit of solar electricity sent back to the grid directly reduced their electricity bill at the same rate.
For businesses, however, the rate was based on SMP (System Marginal Price), which is the actual market price of electricity. This price changes throughout the day depending on supply and demand.
With Solar ATAP, everyone now follows SMP. The value of the extra solar energy you export is no longer fixed. Instead, it changes every 30 minutes based on real-time electricity prices. This means the amount you earn from exporting solar energy can go up or down, depending on market conditions.
2. System Sizing Up to 100% of Maximum Demand
Under Solar ATAP, you can install a solar system in Malaysia that covers up to 100% of your electricity needs.
Previously under NEM, system sizes were limited:
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- Low Voltage (LV) users were capped at 60% of their allowable capacity (fuse rating or CT ratio).
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- Medium and High Voltage (MV/HV) users were capped at 85% of their maximum demand.
With Solar ATAP, these limits have been removed. This allows you to fully utilise your rooftop and generate more of your own electricity, improving overall savings.
3. No Fixed Contract Period
Under NEM, solar systems operated under a 10-year net energy metering arrangement.
Under Solar ATAP, the programme also comes with a 10-year tenure for export credits, after which the system continues under self-consumption mode. However, Solar ATAP offers greater flexibility through features such as no fixed quota and larger allowable system sizing.
Summary: NEM vs Solar ATAP
| NEM | Solar ATAP | |
| Status | Ended (30 June 2025) | Active (from 1 January 2026) |
| Mechanism | Earn bill credits by exporting extra solar energy to the grid | Emphasis on self-consumption with less reliance on the grid |
| Export Credit | Residential user: 1-to-1 credit Commercial user: SMP |
SMP for all |
| System Size | Generally capped based on consumer category and maximum demand | Up to 100% maximum demand |
| Export Benefit Period | 10 years under NEM arrangement | 10 years, with continued self-consumption thereafter |
| Quota | Yes (limited quota and first-come, first-served) | No fixed quota (everyone can apply) |
| Focus | Export-driven | Self-consumption driven |
What Solar ATAP Means For You
For Existing NEM Users
If you are already under NEM, you will continue to enjoy the same benefits until your contract expires. The end of the NEM programme does not affect your entitlements.
For New Solar Adopters
Solar ATAP Malaysia changes how solar systems are designed and how savings are achieved. Under this framework, systems are planned based on your actual electricity usage, rather than how much energy can be exported to the grid.
Unlike previous schemes, Solar ATAP places greater emphasis on using the solar energy you generate directly. This helps maximise cost savings and improve overall system efficiency.
Homeowners and businesses can now install systems sized up to 100% of their electricity needs, allowing for better use of rooftop space and higher self-consumption.
As a result, how and when you use electricity becomes more important. Solar systems should be designed around your usage patterns to deliver the best long-term value, rather than simply installing the largest possible capacity.
Should You Consider Battery Energy Storage (BESS)?
Under Solar ATAP, Battery Energy Storage Systems (BESS) are becoming increasingly relevant as part of a well-optimised solar setup.
Since excess energy exported to the grid is now valued based on market pricing (SMP), which can be lower and fluctuate throughout the day, storing your unused solar energy for later use can often provide better returns.
BESS allows you to:
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- store excess solar energy generated during the day
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- use it at night instead of drawing electricity from the grid
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- reduce reliance on fluctuating electricity prices
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- maintain more stable and predictable energy costs
For businesses with night-time operations or variable energy usage, BESS can significantly improve overall system performance and long-term savings.
Is Solar Still Worth It in Malaysia in 2026?
Yes, solar remains a strong investment in Malaysia, but the approach has evolved. Even after the end of NEM, it continues to offer long-term value due to:
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- rising electricity tariffs
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- significant daytime self-consumption savings
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- reduced carbon footprint and enhanced sustainability profile
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- alignment with Environmental, Social, and Governance (ESG) goals and commitments.
However, success now depends on:
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- proper system sizing
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- understanding consumption patterns
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- strategic planning
Why Working with the Right Solar Partner Matters
With Solar ATAP, solar is no longer just about installing panels, it is about designing an energy system aligned with your operations.
At Avera Energy, we combine deep technical expertise with real-world project experience to help you navigate the evolving solar landscape. From system design and regulatory alignment to long-term performance optimisation, we guide you through every step of your solar journey.
Our approach ensures your system is not only compliant with current frameworks, but also structured to deliver reliable, long-term value.
Frequently Asked Questions (FAQs)
What is Solar ATAP Malaysia?
Solar ATAP is Malaysia’s latest rooftop solar programme introduced in 2026 to replace NEM.
Is NEM still available in Malaysia?
No, NEM ended on 30 June 2025.
What is SMP in solar Malaysia?
SMP (System Marginal Price) is a market-based electricity pricing mechanism used to value excess solar energy exported to the grid. The rate fluctuates throughout the day based on supply and demand.
How much can I save with solar under Solar ATAP?
Savings depend mainly on how much solar energy you use directly. Most users achieve higher savings by maximising self-consumption rather than exporting excess energy.
Do I need a battery (BESS) for Solar ATAP?
A battery is not required, but it can be beneficial. It allows you to store excess solar energy and use it later, which can improve savings especially if you use more electricity at night.
Can residential users install solar under Solar ATAP?
Yes, Solar ATAP is available for both residential and commercial users, subject to system design and utility approval.
Is Solar ATAP suitable for businesses?
Yes. Businesses with consistent daytime energy usage can benefit significantly, as they are able to use most of the solar energy generated directly.
How is solar system size determined under Solar ATAP?
System size is based on your actual electricity usage and energy profile, rather than fixed limits. This ensures your system is optimised for maximum savings.
How long does it take to install a solar system in Malaysia?
A typical solar installation takes around 1 to 3 months, including approvals, installation, and commissioning.
Is solar still worth it after NEM ended?
Yes. While the structure has changed, solar remains a strong investment in Malaysia, especially when systems are properly designed to maximise self-consumption.
Start Your Solar Journey with Avera Energy
If you are considering solar in Malaysia under the Solar ATAP framework, Avera Energy can help you:
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- Assess your energy profile and system requirements
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- Evaluate savings and return on investment
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- Design an optimised solar system, including battery energy storage (BESS)
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- Deliver a solution aligned with your operational needs
Speak to our team today to understand how Solar ATAP applies to your home or business.
