In a bold move to accelerate the nation’s clean energy transition and enhance its regional competitiveness, the Malaysian government has significantly reduced its Green Electricity Tariff (GET) surcharge by up to 80%. The change is accompanied by the rollout of the GET GreenPath program—targeted at high-energy users such as data centers and manufacturers—as the country pushes toward its ambition of becoming a regional low-carbon technology hub.
The Ministry of Energy Transition and Water Transformation (PETRA) announced that under the revised mechanism, the GET will now follow a single flat-rate structure instead of the previous user-tiered model. The surcharge is now priced at 5 sen/kWh (USD 0.012) for a one-year subscription, 4 sen/kWh (USD 0.0095) for two years, and 3 sen/kWh (USD 0.0071) for a three-year subscription.
This marks a sharp reduction from the previous rates of 10 sen/kWh for residential and low-voltage users and 20 sen/kWh for medium- and high-voltage users, making the new scheme over 80% cheaper in some cases. In 2023, the GET surcharge peaked at 21.8 sen/kWh (USD 0.052).
Implemented in tandem with Malaysia’s new electricity pricing mechanism effective July 2025, the GET now replaces the earlier tiered structure with a flat rate and integrates previously exempt users into the new Automatic Fuel Adjustment (AFA) system—without additional cost burdens. The shift is aimed at streamlining energy pricing and encouraging broader adoption of green power.
The GET scheme, launched in 2021, enables consumers to subscribe and pay a surcharge on top of their electricity bills in exchange for Renewable Energy Certificates (RECs). These certificates verify the consumption of government-certified renewable electricity and support corporate sustainability goals. Since inception, 3,551 users have subscribed to the program, with green energy delivery totaling 10,500 GWh.
“The revised GET is part of a larger strategy to build confidence in green electricity procurement by offering more affordable and flexible options to both households and businesses,” PETRA said in a statement.
GreenPath Targets Data Centers and Heavy Industry
In addition to the revised surcharge structure, PETRA unveiled the GET GreenPath initiative—an advanced version of the GET program designed for large-scale electricity users such as data centers and manufacturers. The program introduces a symbolic management fee of just 0.2 sen/kWh (USD 0.00047), to minimize additional cost barriers to renewable energy adoption.
The GreenPath launch comes at a crucial time, as electricity tariffs for data centers have increased under the new pricing framework. According to Sprint DC Consulting founder Gary Goh, a typical 100 MW data center could see additional costs ranging from USD 15 million to USD 20 million under the new structure.
Industry leaders have voiced concern over the potential impact on Malaysia’s standing as a regional data center hub. Mahadhir Aziz, President of the Malaysia Data Center Alliance, warned that rising power tariffs may prompt investors to look to neighboring countries like Vietnam and Thailand. U.S.-based tech giant Equinix, which operates two sites in Malaysia, has reportedly begun exploring alternative energy sources to offset rising operational costs.
Despite these concerns, PETRA asserts that the dual-pronged GET and GreenPath strategy aims to strike a balance between energy transition goals and market competitiveness. The ministry remains optimistic that these reforms will bolster Malaysia’s appeal to green-conscious investors and reinforce the country’s leadership in Southeast Asia’s clean energy transformation.
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