Malaysia Extends Solar Credit Scheme for Over 96,000 Rooftop Users Under MBIPV and NEM Programmes

The Malaysian government will continue to grant electricity bill credits to over 96,000 existing rooftop solar users under the Malaysian Building Integrated Photovoltaic (MBIPV) and Net Energy Metering (NEM) schemes, allowing them to earn returns for excess solar power exported to the national grid.

In a statement issued , the Ministry of Energy Transition and Water Transformation (Petra) confirmed that the decision is in line with the launch of a new electricity tariff structure taking effect today, designed to enhance fairness and transparency across the energy ecosystem.

According to the ministry, the updated framework will continue to provide solar credit benefits, though with variations based on each user’s specific programme and installation period.

Currently, Malaysia has over 82,000 operational solar PV systems, contributing 1.7 gigawatts (GW) of installed capacity, while another 14,000 systems (595 megawatts) are under development.

Under the revised policy:

• MBIPV users will receive credits for energy, network, and capacity usage for an additional five years, until December 31, 2030.
• NEM 1.0 users will continue to earn credits based on the displaced cost for ten years, until December 31, 2035.
• NEM 2.0 and 3.0 users will receive similar credits for a ten-year period from the date of system installation.

Petra noted that incentive rates and credit calculations may be adjusted over time to ensure equity among electricity users and to offer fair returns to eligible participants. This may include energy efficiency rebates or other targeted benefits.

In a move to standardise credit application, the ministry has introduced a uniform 12-month settlement period for all rooftop solar programmes, replacing the previously inconsistent credit cycles.

For users whose original credit period has ended, the government is offering pathways to transition into other renewable energy schemes. Options include the Solar for Self-Consumption (SelCo) programme and the Community Renewable Energy Aggregation Mechanism (CREAM). Users may also adopt energy storage systems or participate in any upcoming government-backed solar initiatives.

The continuation of the credit scheme follows the conclusion of the NEM programme on June 30. Rooftop solar development will now proceed under an enhanced SelCo framework, which allows for larger system sizes and more flexible installations, in line with previous government announcements aimed at expanding Malaysia’s renewable energy footprint.