Solar ATAP for Factories in Malaysia 2026: Rooftop Solar, Roof Checks and Landlord Consent

Key Takeaways

• Solar ATAP is the rooftop solar scheme for Peninsular Malaysia from 1 January 2026. It took over from Net Energy Metering (NEM 3.0), which closed at the end of June 2025.
• A factory can install solar up to 100% of its maximum demand (the average of the last 12 months), capped at 1,000 kW of inverter output and subject to a TNB network study.
• Solar you use on site saves what you would have paid TNB: 50.68 sen/kWh plus AFA (3.61 sen in October 2026) on a low voltage tariff. Exports earn only the Average System Marginal Price, about 18.8 to 24.8 sen/kWh in 2026, and only against the same month's bill.
• The ATAP contract with TNB runs for up to 10 years. After that the system runs for self-consumption only.
• Above 72 kW you need a TNB Connection Assessment Study (RM1,000 to RM8,000) and an Energy Commission generating licence. Every system needs an engineer-endorsed structural drawing for the roof mounting.
• Tenants need the landlord's written consent and a clear deal on roof warranty, insurance, reinstatement and who owns the panels when the lease ends.

Solar ATAP (Solar Accelerated Transition Action Programme) lets a factory put solar panels on its own roof, use the power first and export any surplus to TNB for a bill credit. On a low voltage tariff a unit you use yourself is worth two to three times a unit you export, so the scheme pays best when the system is sized to your daytime load. Check the roof before you buy panels, and if you rent, settle consent, ownership and reinstatement with the landlord in writing first.

What Solar ATAP is, and what happened to NEM 3.0

The scheme rests on the Energy Commission's Guidelines for Solar ATAP in Peninsular Malaysia (GP/ST/No. 60/2025), issued under the Electricity Supply Act 1990. SEDA Malaysia handles applications; TNB signs the contract and fits the meter.

Date	What happened
2021 to 30 June 2025	NEM 3.0 quota of 2,500 MW offered under NEM Rakyat, NEM GoMEn and NOVA (SEDA)
12 September 2025	PETRA announces Solar ATAP as the successor to NEM (Bernama)
30 December 2025	Energy Commission registers the Solar ATAP guidelines
1 January 2026	Solar ATAP takes effect (SEDA Solar ATAP page)

There is no fixed quota. Capacity is whatever the Government decides, first come, first served, and SEDA must publish approved capacity every month.

Who can apply. An existing TNB consumer, owner or occupier, with its own account. Tenants on a landlord's sub-meter in a multi-tenant building and co-generators are not eligible. A factory on NEM or a self-consumption (SELCO) contract must end it first, and a NEM convert keeps only the remaining years of its old contract.

How Solar ATAP works for a factory

The panels connect behind TNB's meter. TNB installs a bi-directional meter and you install a PV meter, but the guidelines put the cost of both, and of the system, on you. Each month:

1. Solar feeds your machines first. Every kWh used on site is a kWh you do not buy.
2. Surplus goes to the grid and is credited at the Average SMP, the mean System Marginal Price from 7am to 7pm in the previous month, which Single Buyer publishes by the 14th.
3. The credit only offsets energy imported in the same billing period. Unused credit is forfeited and a negative bill is set to zero, with no cash paid.
4. Exports are capped at capacity in kWac x 5 sun hours x days in the billing period. A 400 kWac system earns credit on at most 60,000 kWh in a 30-day month.
5. The credit cannot reduce the Automatic Fuel Adjustment (AFA).

What one unit of solar is worth

Where the kWh goes	Value per kWh, October 2026	Notes
Used on site, low voltage	50.68 sen + 3.61 sen AFA = about 54.3 sen	Energy, capacity and network are all per kWh on LV
Used on site, medium voltage	29.83 sen + 3.61 sen AFA = about 33.4 sen	The RM89.27/kW demand charge is not touched
Exported to TNB	Average SMP, about 18.8 to 24.8 sen in 2026	Energy only, same month only

Rates are from TNB's tariff schedule and the October 2026 AFA from Single Buyer; our TNB tariff guide for factories explains each charge. On medium voltage a cloudy half hour can still set your maximum demand, so do not count on solar to cut the demand charge. Under the guidelines, carbon credits and other environmental attributes belong to the ATAP consumer, which matters when an investor owns the panels.

The ATAP contract lasts up to 10 years. After that, export credits stop and the system runs for self-consumption only.

How to size rooftop solar for a factory

Three limits apply. Use the smallest.

1. The rule. Inverter output may not exceed 100% of maximum demand (the average recorded MD of the past 12 months, or declared MD for a newer account) and never 1,000 kW. TNB's study can set a lower figure.
2. Daytime load. Get half-hourly load data and look at weekdays, Saturdays and Sundays separately. Output produced while the plant is idle earns the lower export credit, or nothing once the cap or your imports are used up. A single-shift plant closed on Sundays usually needs a smaller system than a 24/7 plant with the same MD.
3. Usable roof. Deduct skylights, translucent sheets, walkways, roof plant, shaded strips and edge setbacks. Ask for a layout drawing with panel count and kWp, not a figure from gross roof area.

Still choosing a building? Check power first with our guide to TNB amperage for factories and the factory power calculator. For heavy loads, the high-power factory service shortlists units with confirmed supply.

Roof structure and condition checks

The guidelines require the mounting structure to be certified under the Registration of Engineers Act 1967 or the Architects Act 1967, and SEDA asks for an endorsed civil and structural (C&S) drawing. In practice a professional engineer checks your roof before any panels arrive.

Check	What to ask for
Purlins and rafters	Engineer's calculation of added dead load and wind uplift against the original drawings; strengthening if needed
Metal deck type	Trapezoidal or concealed-fix (standing seam) sheet, and a clamp or rail system that suits it, so you know whether fixings pierce the sheet
Roof age and condition	Remaining life of the sheets, rust, loose fasteners, past leaks. Replacing sheets later means removing the array first
Waterproofing	How every penetration is sealed; gutters and drainage kept clear
Roof warranty	Written word from the roofing supplier or landlord on whether drilling or clamps affect it
Old fibre cement roofs	Testing before anyone walks on or drills them; some older sheets may contain asbestos
Access and safety	Walkways and lifelines for cleaning and repairs
Lightning protection	How the array ties into the existing earthing

TNB's study also checks the transformer, switchgear and cables serving your site, and if the supply system needs changes, the applicant pays. Our note on TNB substations for factories covers who owns what.

Fire safety and insurance

• Standards and sign-off. In the SEDA application the designer confirms compliance with IEEE 1547 and MS 1837. A wireman certifies systems up to 72 kWac and a professional engineer above that, with SEDA-certified PV designers and installers.
• Isolation. Panels produce DC power in daylight. Ask where the DC isolators sit and how firefighters would make the array safe.
• Bomba. If your factory holds a fire certificate, ask your fire safety consultant whether the installation affects your fire safety plans, and check with Bomba. Our fire certificate guide explains which premises need one.
• Insurance. SEDA's form lists insurance as an annual operating cost. Tell your insurer before installation and get written confirmation that the policy covers the system and any roof damage it causes. In a rented building, agree whose policy covers the panels and whose covers the building.

Approvals: TNB, SEDA, Energy Commission and council

Step	Who	Fee or time limit
1. Appoint a Registered PV Service Provider (RPVSP)	You	From SEDA's directory
2. Technical study	TNB or a party it endorses	None up to 72 kW; CAS RM1,000 (72 to 180 kW), RM5,000 (180 to 425 kW), RM8,000 (425 kW to 1 MW); HV study validation RM15,000. Valid one year
3. eATAP application	SEDA, through your RPVSP	RM7.50 per kW, non-refundable; decision within 2 months
4. Generating licence	Energy Commission	Above 72 kWac on three phase; smaller systems file a section 54 exemption notification
5. Install, test, commission	ST-registered electrical contractor	Certified by the competent person
6. ATAP contract and meter	TNB	Signed before commencement; starts when TNB installs the meter
7. Building and fire matters	Council (PBT) and Bomba	Check with your council, for example MBDK in Klang or MBSA in Shah Alam

Documents include your SSM profile, an endorsed single line diagram, the latest TNB bill, 12 months of MD records, the C&S drawing and the study approval. Systems up to 72 kW skip the study but must keep export below the capacity of TNB's equipment serving the site.

Confirm the order before you pay a deposit: SEDA's Solar ATAP page asks for the eATAP application after installation and commissioning, while the flowchart in the guidelines shows approval first, then an 18-month window to start operating. Ask your RPVSP which applies.

Ownership models: outright purchase, leasing, PPA and SARE

Model	What you pay	Who owns the system
Outright purchase (cash or bank loan)	Full capex up front	You
Solar leasing	Fixed monthly payment	The investor during the lease; the site owner after it ends
Solar PPA	A rate per kWh generated	The investor
SARE	A PPA or lease where TNB collects the investor's charge through your bill, for a 2 sen/kWh service fee	As per the PPA or lease; non-payment can lead to disconnection

Leasing and PPA investors must be SEDA Registered Solar PV Investors. A local RPVI needs RM1 million paid-up capital; a foreign RPVI may only serve systems above 250 kWac and needs RM10 million paid-up, at least 80% local staff and a fully local EPC contractor.

Green tax incentives: GITA and GITE

MIDA's Green Technology Incentive guideline covers applications received from 1 January 2024 to 31 December 2026, and MIDA's green technology page says the incentives run until 2026:

• GITA Project, Tier 3 renewable energy (including solar): 100% investment tax allowance on qualifying capex for 5 years, set off against 70% of statutory income. It is for solar run as a business, and you must apply to MIDA before incurring capex.
• GITE Solar Leasing: 70% income tax exemption for RPVI leasing companies with at least 60% Malaysian equity and 3 MW of projects, for 5 years (3 to 10 MW) or 10 years (10 to 30 MW).
• GITA Asset for own consumption: the route for a factory buying panels for its own use. Applications go to MGTC and the asset must be in the MyHIJAU directory. Check current terms with MGTC before you sign a purchase order.

Payback: what really decides it

Payback differs from roof to roof, so we do not quote one. Ask each installer to state in writing the system cost including structural works and fees, the share of output used on site, the tariff, AFA and export credit assumed, upkeep and inverter replacement, and any financing cost or PPA escalation.

For a feel of the numbers, a low voltage factory that uses 30,000 kWh of its own solar in a month avoids about RM16,290 at October 2026 rates (30,000 x 54.3 sen). The same 30,000 kWh exported earns a credit of about RM5,640 to RM7,440 at 2026 Average SMP. A quote that prices exports at the full tariff is using NEM-era logic. For the rent-or-buy angle in Klang and Shah Alam, see our earlier note on the solar factory boom.

Renting a factory: what to agree with the landlord

A tenant with its own TNB account can be the ATAP consumer, but the roof is the landlord's. SEDA's form asks whether the site is owned, charged to a bank or leased, and the applicant declares it represents the owner of the premises, so expect to need written consent before an installer proceeds. The ATAP contract runs up to 10 years and a PPA often runs as long, so line both up with your tenancy.

If the premises are sold, the new owner may apply to continue for the remaining period; if the ATAP consumer relocates, it may apply to continue at the new premises.

Clause	What to settle in writing
Consent	Approval with the engineer's report and drawings attached
Leaks and roof warranty	Who pays for leaks caused by the installation
Roof repairs	Who pays to remove and refit panels if the landlord repairs the roof
Insurance	Whose policy covers panels, building and third-party claims
Ownership at lease end	Remove and make good, hand over, or a buyout at an agreed formula
Reinstatement	Exact scope: panels, rails, cables, inverters and roof patching
Early exit and sale	What happens to the PPA if the tenancy ends early or the building is sold, and whether the landlord's bank must consent

Our guide to the factory tenancy agreement covers the wider clauses on alterations and reinstatement.

Buying a factory with solar already installed

Ask who holds the ATAP, NEM or self-consumption contract and how many years remain, whether any PPA, lease or SARE arrangement passes to you, the age and warranties of panels and inverters, the roof's leak history under the array, and the Energy Commission licence or exemption papers. If owning the roof is part of your plan, browse factories for sale in Selangor or send your brief through find me a factory and say rooftop solar matters to you.

FAQ

Is NEM 3.0 still available in 2026?

No. SEDA offered NEM 3.0 quota until 30 June 2025, and Solar ATAP replaced it from 1 January 2026. NEM participants can move to Solar ATAP by ending their NEM contract, keeping only its remaining years.

How big a solar system can a factory install under Solar ATAP?

Up to 100% of maximum demand, based on the average recorded MD of the past 12 months, with a cap of 1,000 kW of inverter output. TNB's technical study can set a lower limit if the local network cannot take more.

How much does TNB credit for exported solar?

Factory exports are credited at the Average SMP for 7am to 7pm in the previous month, about 18.8 to 24.8 sen/kWh in 2026. The credit only offsets energy imported in the same billing period, cannot reduce AFA, and is forfeited if unused.

Can a tenant install rooftop solar on a rented factory?

Yes, if the tenant has its own TNB account rather than a landlord's sub-meter, and the landlord agrees in writing. The tenancy should settle roof warranty, insurance, reinstatement, ownership at lease end and what happens to any PPA if the lease ends early.

What happens when the 10-year Solar ATAP period ends?

Export credits stop. The system can keep running for self-consumption only, under the Energy Commission's self-consumption guidelines, so surplus sent to the grid earns nothing.

Are there tax incentives for factory rooftop solar in 2026?

A factory buying panels for its own use applies to MGTC under GITA Asset for own consumption. Solar run as a business can apply to MIDA for GITA Project by 31 December 2026, and solar leasing companies can apply for GITE.

Buying or renting, talk to us

FactoryHub is the industrial-only platform of Peter Tan (REN 12771) and Jason Low (PEA 1478), registered with BOVAEP under CID Realtors Sdn Bhd E(1) 1855. We handle both rent and sale, and we co-broke across the whole market, so if the right unit is another agent's listing we will still put it in front of you.

Send us the numbers that decide the shortlist: required amps, built-up area, floor loading, preferred area and target date. We reply with what actually exists, including units that are not advertised publicly. For 800A to 4,000A+ requirements, see high-power factories in Selangor.

Agent	Licence	Mobile / WhatsApp	WeChat
Peter Tan	REN 12771	+6016-666 6872	peterindustrial
Jason Low	PEA 1478	+6012-288 1834	massiveaction

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