For Malaysian manufacturers and business owners, 2026 brings a massive regulatory shift. The government’s new Solar ATAP framework has removed a critical bottleneck that previously limited commercial solar installations. If you are still operating on the old “75% Capacity Limit” mindset, your factory roof is likely under-earning.
🚀 The Game Changer: 100% Maximum Demand (MD)
Previously under NEM 3.0, commercial users were capped at 75% of their Maximum Demand.
Effective Jan 1, 2026: You can now install solar capacity up to 100% of your Maximum Demand (capped at 1MW) [web:64][web:66].
What this means: If your factory runs heavy machinery during the day, you can now generate significantly more “free” electricity to cover those peak operational hours, reducing your reliance on expensive TNB peak tariffs to near zero.
Why “Daytime Factories” Win Big in 2026
The “Use-it-or-lose-it” rule of Solar ATAP (where monthly credits don’t rollover) is actually a benefit for factories operating 9am-6pm. Unlike homes that are empty during the day, your factory consumes power exactly when the sun is shining. This is 0% Waste, 100% Savings.
💰 The GITA Multiplier Effect (Valid till Dec 2026)
Don’t forget the Green Investment Tax Allowance (GITA). This incentive allows you to claim 100% of your solar system cost as a tax allowance against your Statutory Income [web:70][web:75].
- System Cost: RM 1,000,000
- Tax Allowance Claimed: RM 1,000,000
- Tax Savings (24% Corp Rate): RM 240,000 Cash Back in your pocket.
Essentially, the government subsidizes nearly 1/4 of your system cost through tax savings, pushing your ROI to break even in just 3-4 years [web:68].
🏭 Factory Solar ROI Estimator
See how GITA + Solar ATAP impacts your cash flow.
HOMI’s End-to-End “Boss Mode” Service
We know you don’t have time to run to SEDA, MIDA, or TNB. HOMI handles the entire bureaucratic nightmare for you:
- Technical Specs: Conducting the Load Profile Study to prove your Maximum Demand.
- Licensing: Handling the Solar ATAP application with TNB.
- Tax Processing: Preparing the technical green technology validation for your GITA application.
You just sign the papers and watch the electricity bill drop.
Get a Free “Max Demand” Roof AssessmentFAQ for Business Owners
What happens if I install more than my Maximum Demand?
Under Solar ATAP regulations, your inverter capacity cannot exceed 100% of your recorded Maximum Demand (or declared MD for new accounts). If you need more, you must technically justify it, but TNB typically enforces the 100% cap to protect grid stability.
Can I upgrade my existing solar system to the new 100% limit?
Yes. If you installed a smaller system under NEM 3.0 (capped at 75%), you can apply to add capacity under Solar ATAP to reach the new 100% limit. However, the new capacity will follow Solar ATAP rules (no credit rollover).
Is GITA guaranteed for every company?
GITA is applicable to companies generating business income in Malaysia. You must apply to MIDA/MGTC and the asset must be verified as “Green Technology”. HOMI assists in ensuring your equipment meets these compliance standards.
