Solar ATAP: A New Chapter for Rooftop Solar in Malaysia
In September 2025, Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) announced the launch of the Solar Accelerated Transition Action Programme (Solar ATAP). The programme will officially commence on 1 December 2025, becoming a major driver for rooftop solar development and succeeding the Net Energy Metering (NEM) scheme, which ended earlier this year.
Key Features of the Policy
According to information released by the government, the main features of Solar ATAP include:
Settlement Mechanism: Electricity exported to the grid will be valued based on the System Marginal Price (SMP), reflecting the real-time supply and demand conditions of the electricity market.
System Capacity Limit: Rooftop solar systems can be installed up to 100% of the user’s maximum demand, giving households and businesses more flexibility in utilizing rooftop space.
Eligibility: Open to residential, commercial, and industrial users, emphasizing distributed generation and renewable energy adoption.
Launch Date: Starting 1 December 2025, applications will be facilitated through the Energy Commission and SEDA Malaysia.
How Does It Differ from NEM?
Under the previous NEM scheme, exported electricity was offset at rates close to retail tariffs. With ATAP, settlement will be based on SMP, which changes every 30 minutes in line with market conditions, making the mechanism more market-driven and flexible. ATAP also removes quota restrictions, allowing installations up to 100% of maximum demand.
Implications for Different Users
Residential Users: Greater flexibility in rooftop utilization, higher self-consumption, and more predictable electricity bills.
Commercial and Industrial Users: The relaxed capacity cap enables cost savings and optimized energy management.
Investors and Supply Chain: Policy continuity ensures stable market conditions for installers, financiers, and the wider renewable energy ecosystem.
Government’s Long-Term Goal
Solar ATAP plays a key role in Malaysia’s roadmap towards 70% renewable energy capacity by 2050. The programme aims to accelerate energy transition by encouraging more distributed renewable energy adoption.
Important Note
The full technical guidelines of Solar ATAP (including application procedures, settlement cycles, and technical requirements) will be officially released on 1 December 2025. This article is based on publicly available information, and final regulations are subject to official documents.
✦ Conclusion
The launch of Solar ATAP marks a new era for rooftop solar in Malaysia. For households and businesses interested in installing solar systems, this is an important development worth following closely. We will continue to monitor official updates and share more in-depth insights once the detailed guidelines are published.
