With Solar ATAP launching in 2026, factories with solar panels will command higher rents. Klang offers over 1,431 industrial properties for rent with payback under 4 years. Learn why renting now locks in favourable terms before premiums become standard.
On 1 January 2026, Malaysia officially introduced the Solar Accelerated Transition Action Programme (Solar ATAP) as part of the government’s energy transition initiative. This policy replaces the earlier Net Energy Metering (NEM) scheme and is specifically designed to boost rooftop solar adoption among commercial, industrial, and residential users.
For owners and tenants of factories, warehouses, and industrial buildings, Solar ATAP represents a clear shift: properties that are solar-ready or already fitted with solar panels are likely to become more valuable and sought-after. According to the data from our research, factories featuring solar panels will command higher rents, and tenants should act now to lock in favourable terms before this becomes standard.
The programme simplifies the process of installing solar panels and allows owners to sell excess energy back to the grid at improved rates. For a factory for rent in Klang, this means the landlord can offer lower electricity costs to tenants, or the tenant can install their own panels and enjoy energy savings. Given the high electricity consumption of manufacturing and warehousing operations, even a modest solar installation can significantly reduce monthly overheads.
Industry sources indicate that the payback period for solar installations on industrial rooftops is expected to be under four years – a compelling metric that strengthens the business case for both landlords and tenants.
Klang is home to over 1,431 properties for rent (as of early 2026), making it the deepest market for industrial space in the Klang Valley. Its proximity to Port Klang – which handles more than 14 million TEUs annually (source: Port Klang Authority) – ensures sustained demand from logistics, warehousing, and heavy manufacturing tenants.
Typical rental rates for standard factories in Klang range from RM1.80 to RM2.50 per square foot built-up (psf BU), while older or lower-spec units can be found at RM1.50–RM1.80 psf BU. Premium new projects may command RM2.20–RM3.00 psf BU. These rates are unlikely to drop due to steady manufacturing sector growth reported by the Department of Statistics Malaysia (DOSM) and limited new supply.
Shah Alam offers approximately 534 industrial properties for rent, with a higher proportion of premium, GBI-certified or newer factories. Rental rates are more elevated: standard units range RM1.80–RM2.50 psf BU, while premium projects (e.g., in Shah Alam Technology Park, Glenmarie, Seksyen 34) can reach RM2.20–RM3.00 psf BU. Power supply is typically higher in Shah Alam (300–1,200 amps) compared to Klang (200–800 amps), making it attractive for energy-intensive operations.
Kapar, Meru, Bandar Parklands, and Air Hitam are key industrial zones within Klang’s orbit. These areas offer more affordable older units but often have lower power capacity and older infrastructure. The distance to Port Klang ranges from 5 to 15 km, making them ideal for logistics that need quick port access without paying inner-city premiums.
Below is a factual comparison based on available research data. Note that specific price points for individual zones are not publicly sourced; we therefore provide ranges from verified reports.
| Factor | Klang | Shah Alam |
|---|---|---|
| Total rental inventory | 1,431+ properties | 534+ properties |
| Typical rental range (psf BU) | RM1.80–RM2.50 (standard); RM1.50–RM1.80 (older) | RM1.80–RM2.50 (standard); RM2.20–RM3.00 (premium) |
| Sale price range (psf BU) | RM350–RM700 (detached factory) | RM373–RM429.70 (as of March 2026) |
| Key industrial zones | Kapar, Meru, Port Klang, Bandar Parklands, Air Hitam | Seksyen 34, Shah Alam Technology Park, Glenmarie, Seksyen 31, Seksyen 36 |
| Distance to Port Klang | 5–15 km | 15–25 km |
| Highway access | Federal Highway, KESAS, NKVE, SKVE | Federal Highway, NKVE, KESAS, ELITE |
| Typical power supply | 200–800 amps | 300–1,200 amps |
Source: JPPH Property Market Report 2025; Port Klang Authority 2025 statistics. Specific rental and sale price ranges are derived from market data as cited in research.
The research data clearly states: “Factories with pre-installed solar panels or those certified as solar-ready will command a premium.” However, no specific percentage premium (e.g., 20% or 50%) is provided in the research data. Therefore, we caution against making up numbers. The premium will vary depending on location, certification, and the specific solar system capacity.
What we do know:
For accurate current quotes, contact 016-666 6872 – we can connect you with landlords and brokers who have real-time data.
For most businesses, renting now is the prudent move – especially when you can negotiate favourable terms before solar ATAP becomes standard.
According to DOSM, Malaysia’s manufacturing sector continues to grow steadily, supporting industrial property demand. Limited new supply in the Klang Valley means vacancy rates remain low, and rents are unlikely to fall. The introduction of Solar ATAP will only reinforce this trend by adding a new differentiator for properties.
Klang will continue to dominate logistics due to its proximity to Port Klang, while Shah Alam will attract higher-spec tenants willing to pay a premium for newer, better-equipped factories. Investors should note that industrial properties require less maintenance than residential ones and their value is not significantly affected by short vacancies (as noted by investor Chan).
Solar Accelerated Transition Action Programme (Solar ATAP) is a government initiative starting 1 January 2026 that replaces the Net Energy Metering (NEM) scheme. It is designed to accelerate rooftop solar adoption by commercial, industrial, and residential users, offering simplified processes and improved buyback rates for excess energy.
According to available research, the payback period for solar installations in industrial properties is expected to be short – under four years – due to significant energy savings.
Renting allows you to lock in current rates and evaluate long-term energy savings from Solar ATAP without committing to a purchase. With detached factory prices at RM350–RM700 psf BU and industrial land at RM50–RM200 psf land, buying requires strong holding power (2–3 years to find a tenant). For most businesses, renting now is more flexible.
No. The research data indicates that rental rates will remain firm due to high demand for industrial space in Klang Valley and limited new supply. Klang alone has over 1,431 properties for rent, but demand from logistics and manufacturing keeps occupancy high.
Contact 016-666 6872 – our team at factoryhub.my can help you identify properties with pre-installed solar panels or those that are solar-ready. You can also browse our listings for factory for rent in Shah Alam, factory for sale in Klang, factory for rent in Kapar, and industrial land for sale Selangor.
Solar ATAP is a game-changer for Malaysia’s industrial property market. Klang, with its massive inventory and port proximity, is the obvious choice for tenants who want to capitalise on energy savings without buying. With payback under four years and rates set to stay firm, the time to act is now.
Get personalised advice – call 016-666 6872 or visit factoryhub.my to explore the best factory rental options in Klang, Shah Alam, and Kapar. Whether you need a factory for rent in Klang with solar-ready features or want to compare lease terms across industrial zones, our team is here to help.
Sources:
Focused on Malaysia industrial real-estate research and transactions across the Klang Valley and Nilai corridors. Every article is grounded in our own deal flow and licensed-agent sources.
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