Is Extension Good News? It Depends on Your Perspective.

Recently, news of the ATAP (Advanced Tariff / Allocation Program) extension to 2026 has circulated. The immediate reaction from many clients is: “What a relief! I don’t need to rush my decision before year-end.”

As a consultant with years in the solar industry, I have to pour some cold water on this optimism. The policy timeline has been extended, but the “price” will not wait for you.

In fact, waiting until 2026 to install could cost you 10% – 15% more than installing today. Why?

Risk 1: The USD/MYR Rollercoaster

This is the industry’s open secret. The vast majority of solar panels, inverters, and core components are traded globally in US Dollars (USD).

• The Reality: The exchange rate is relatively stable now, but stability is not guaranteed.

• The Risk: A slight depreciation of the Ringgit directly spikes the import cost of solar systems. You think the extension buys you time, but it actually exposes you to 2 years of currency risk. Today’s quote might be the “floor price” for the foreseeable future.

Risk 2: Rising Material & Labor Costs

The key raw materials for solar panels—polysilicon, silver paste, aluminum—and shipping logistics are volatile.

• Inflation Trend: With global inflation, hardware costs are on a long-term upward trend.

• Labor Cost: Adjustments to Malaysia’s minimum wage and a shortage of skilled technicians mean that installation labor costs in 2026 will inevitably be higher than in 2025.

Risk 3: The Biggest Hidden Cost — “Lost Savings”

This is simple math, yet often overlooked.

Suppose you decide to “wait and see” and install in mid-2026:

• This means for the next 18 months, you will continue paying RM500 – RM800 to TNB every month.

• The Loss: RM600 (avg bill) x 18 months = RM10,800.

This RM10,800 could have paid for one-third of your solar system. Instead, it’s gone forever. Waiting is the most expensive cost of all.

Consultant’s Verdict: Lock in Today’s Price

The smart move is to leverage the current window to lock in the price.

Savvy homeowners are signing now to secure 2025 hardware prices and labor rates. No matter how the market hikes prices in 2026, you are protected. Don’t let the “extension” be an excuse for “procrastination.” Treat it as your “final boarding call.”