Malaysia’s solar landscape is entering a new chapter…a new dawn (if you’ll allow the pun!) — and ATAP (Accelerated Transition Action Programme) is at the centre of it all!

As Net Energy Metering (NEM) ended and businesses and homeowners looked forlornly in uncertainty on what’s next, ATAP emerged not just as a replacement, but as the next stage of strategic evolution for the green energy landscape in Malaysia of how solar energy is being adopted, optimised, and monetised.

Starting 1 January 2026, ATAP signals the government’s intent to accelerate clean energy transition while balancing grid stability, fair billing mechanisms, and long-term sustainability.

For many (of our customers, at least), the big question is simple: How is ATAP different from NEM and SELCO — and why should I care?

The short answer: ATAP offers flexibility, scale, and certainty, especially for commercial and industrial users who want to future-proof their energy strategy.

Unlike NEM, which had strict caps and time-bound quotas, ATAP is designed to support Malaysia’s growing renewable energy ambitions by allowing larger system capacities and a clearer framework for energy offsetting.

At the same time, it avoids some of the limitations of SELCO, which does not allow excess energy offset/sell-back at all.

For quick and easy reference, we have created an easily digestible infographic comparison table which you can right-click and save for future reference!

Yes, yes. It’s a very well made table (we are really proud of it too), but let’s get right into breaking down each segment for you, dear reader.

ATAP vs NEM vs SELCO: What’s the Difference?

With multiple solar programmes introduced over the years, it’s no surprise that many consumers are still comparing ATAP, NEM, and SELCO to determine which scheme best suits their needs. While all three aim to encourage solar adoption, they differ significantly in structure, eligibility, and long-term value.

1. Programme Status & Availability

• ATAP (Accelerated Transition Action Programme)
  ATAP is available starting 1 January 2026, making it the newest and most forward-looking solar programme in Malaysia. It is designed to succeed NEM and support the country’s accelerated energy transition.
  
• NEM (Net Energy Metering)
  NEM officially ended on 30 June 2025. While existing NEM users can continue under their contract terms, new applications are no longer accepted. Existing NEM users can also choose to forfeit their existing NEM and switch to ATAP.
  
• SELCO (Self-Consumption)
  SELCO remains ongoing, but operates under stricter limitations that prioritise on-site consumption only, without allowing excess generation or sell-back.
  

What this means: For new solar adopters with system sizes below 1,000kW (1MW), ATAP is the primary pathway moving forward.

2. Capacity Limits: How Big Can You Go?

• ATAP
  
  • Domestic users:
    
    • 5kW (Single Phase)
      
    • 15kW (Three Phase)
      
    • CCC required if exceeded
      
  • Non-domestic users:
    
    • Up to 100% of Maximum Demand, capped at 1MW
      
• NEM
  
  • Low Voltage: 60% of fuse / CT ratio
    
  • Medium & High Voltage: 85% of Maximum Demand
    
• SELCO
  
  • No fixed capacity limit, subject to technical and regulatory requirements — but with no excess energy offset allowed.
    

Why ATAP stands out: ATAP offers one of the clearest and most generous capacity frameworks, especially for commercial and industrial users planning large-scale installations. Under ATAP, non-domestic consumers can install solar systems sized up to 100% of their Maximum Demand, capped at 1MW — a significant opportunity for factories, warehouses, office buildings, and commercial facilities looking to reduce operating costs and carbon footprint at scale. 

Domestic users are also supported, with capacity limits set at 5kW for single-phase and 15kW for three-phase systems, with potential for an even larger capacity subject to a Connection Confirmation Check (CCC). This is an improvement from NEM, especially for those with larger homes and higher electricity usage. This balance also reflects a more mature solar framework — one that recognises different consumption patterns without applying a one-size-fits-all approach.

3. Billing Mechanism & Energy Offset

• ATAP
  
  • Domestic: Surplus energy offsets at Base Energy Charge
    
  • Non-domestic: Surplus energy offsets at System Marginal Price (SMP)
    
• NEM
  
  • NEM Rakyat: Surplus energy offsets 1-to-1
    
  • NEM NOVA: Surplus energy offsets at System Marginal Price (SMP)
    
• SELCO
  
  • Does not allow excess energy generation
    

Key takeaway: You will actually save more when you use the solar energy generated (in place of electricity from TNB) rather than selling excess solar energy to the grid. Under ATAP, efficient system sizing is key to achieving the best return on investment for your solar system. 

For commercial and industrial users, the energy offset tariff (which is at SMP) is exactly the same as it was under NEM NOVA before.

4. Offset Conditions & Carry Forward

• ATAP
  
  • Offset applies within the same billing month
    
  • No carry forward
    
• NEM
  
  • Excess energy can be carried forward until the end of the calendar year
    
• SELCO
  
  • Offset calculated daily
    
  • No carry forward
    

Why this matters: ATAP promotes smarter energy planning and responsible use by containing offsets within the same billing month.This will discourage users from installing solar systems larger than what they actually need.

This represents a key shift in how energy is billed and offset. As there is no carry-forward mechanism, this structure encourages smarter system sizing and operational efficiency — ensuring solar installations are designed to maximise on-site consumption rather than speculative export. In contrast, previous schemes like NEM allowed annual carry-forward, while SELCO restricts excess offset entirely. Each model serves a purpose, but ATAP strikes a practical middle ground for more sustainable long-term planning for both TNB and the user.

5. Contract Period & Certainty

• ATAP: 10 years from date of commissioning
  
• NEM: 10 years from date of commissioning
  
• SELCO: Lifetime
  

While SELCO offers a longer operational horizon, ATAP’s fixed 10-year contract period from the date of commissioning provides clarity and bankability for businesses aligning solar investments with financial and ESG planning cycles by also providing policy certainty. In an era where energy costs are volatile and sustainability is no longer optional, this predictability matters.

Why You Should Start Applying for ATAP Now

ATAP represents the future of solar adoption — structured, scalable, and aligned with long-term sustainability goals. With NEM no longer available, delaying your decision could mean missing out on early-mover advantages, optimal system sizing, and smoother approval timelines.

Whether you’re a homeowner planning ahead, or a business looking to control energy costs, reduce carbon footprint, and future-proof operations, ATAP offers a clear and compelling pathway to go solar in 2026 and beyond.

The good news if you are searching for solar in Johor or solar in Malaysia? Getting started is easy.

To apply for ATAP or to find out if your property is suitable:

• Email us for a personalised, free-of-charge site assessment
  
• Drop us a DM on our social media channels
  
• Or simply send us a WhatsApp message — our team is ready to help

Remember, at Solarlink Energy Sdn Bhd, we don’t just install solar systems — we are the missing link between you and the power of the sun!