Solar ATAP to Replace NEM in 2026, Marking a New Phase in Malaysia’s Rooftop Solar Journey
Malaysia’s rooftop solar landscape is entering a new chapter with the introduction of the Solar Accelerated Transition Action Programme (Solar ATAP), which will officially replace the long-running Net Energy Metering (NEM) scheme. According to the Ministry of Energy Transition and Water Transformation, Solar ATAP will open for applications from January 1, 2026, with full guidelines to be published on the Energy Commission’s website on December 31.
The move reflects Malaysia’s broader energy transition strategy, balancing renewable adoption with grid stability and long-term sustainability. For homeowners, investors and developers monitoring kl property trends, Solar ATAP represents a meaningful policy shift that could influence housing design, operating costs and future property value.
Why Solar ATAP Replaces Net Energy Metering
For years, NEM played a central role in accelerating rooftop solar adoption by allowing households and businesses to offset electricity bills on a one-to-one basis. Under NEM, excess daytime solar generation could be credited against night-time consumption, covering both energy and capacity charges.
However, with the rapid growth of rooftop solar installations nationwide, grid management has become increasingly complex. The government’s decision to replace NEM with Solar ATAP reflects the need for a more flexible, market-based and grid-responsive framework.
Solar ATAP is designed to:
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Encourage continued solar adoption
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Allow fair compensation for excess energy
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Prevent uncontrolled grid stress
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Support long-term national energy resilience
This recalibration signals a maturing renewable energy market rather than a retreat from solar ambitions.
Key Features of the Solar ATAP Programme
Unlike previous NEM phases, Solar ATAP introduces several structural changes that affect how solar energy is generated, consumed and monetised.
1. No Fixed Quota Allocation
One of the most notable differences is that Solar ATAP will not impose a predefined quota for applications. This contrasts with earlier NEM programmes, which were capped and often oversubscribed.
That said, the ministry clarified that the government reserves the right to introduce limits at any time if large-scale solar installations threaten national grid stability. This flexible approach allows authorities to respond dynamically to adoption rates.
2. Excess Energy Can Be Sold Back to the Grid
Under Solar ATAP, consumers are allowed to install solar systems to cover 100% of their maximum demand. Any excess electricity generated can be exported back to the grid.
Compensation is structured differently depending on user type:
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Non-domestic users receive payment based on the system marginal price (SMP)
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Residential households receive payment based on the prevailing energy charge
This mechanism introduces a more market-aligned valuation of excess solar energy, moving away from the one-to-one offset model of NEM.
3. Higher Solar Capacity Limits for Homes
Solar ATAP also raises installation thresholds for residential properties:
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Single-phase homes: Up to 5kW
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Three-phase homes: Increased from 12.5kW to 15kW
These higher limits benefit larger landed homes, luxury residences and newer developments with higher power demand—particularly relevant for high-end kl property segments where energy consumption tends to be higher.
How Solar ATAP Differs from SelCo
Since the expiry of NEM, new solar adopters have been limited to the self-consumption (SelCo) scheme. Under SelCo:
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Solar energy can only be used directly
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Excess energy cannot be offset against future usage
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Surplus must be stored in batteries for later use
Solar ATAP significantly improves on this by allowing surplus energy to be sold back to the grid, restoring financial viability for rooftop solar without requiring costly battery storage.
For many homeowners and commercial operators, this makes Solar ATAP a more attractive option compared to SelCo.
Implications for Homeowners and Property Buyers
The launch of Solar ATAP has meaningful implications for the residential market, especially in Greater Kuala Lumpur and Selangor.
1. Lower Long-Term Operating Costs
Homes equipped with rooftop solar can significantly reduce electricity bills over time. With Solar ATAP enabling export of excess energy, homeowners can partially monetise surplus generation, improving return on investment.
2. Increased Appeal of Solar-Ready Homes
Properties designed with solar readiness—such as roof orientation, inverter space and three-phase wiring—may command stronger buyer interest. This is particularly relevant in newer kl property developments that emphasise sustainability and smart living.
3. Stronger Case for Landed Properties
Landed homes benefit more from rooftop solar due to larger roof areas and fewer shading constraints. The increased 15kW limit for three-phase homes strengthens the value proposition for high-end landed housing.
Impact on Developers and the KL Property Market
From a development perspective, Solar ATAP reinforces several long-term trends:
1. Sustainability as a Value Driver
Green features are increasingly seen as core attributes rather than optional upgrades. Developers who integrate solar-ready infrastructure may gain a competitive edge.
2. Alignment with ESG and Green Financing
Solar-enabled properties align with ESG criteria, improving access to green financing, sustainability-linked loans and environmentally conscious buyers.
3. Enhanced Asset Value and Marketability
Energy-efficient buildings often enjoy stronger rental demand and resale performance. As energy costs rise, buyers increasingly factor operating efficiency into purchase decisions.
Grid Stability and Policy Balance
While Solar ATAP encourages adoption, the government’s cautious stance on grid stability is notable. By reserving the right to impose limits if installations become excessive, authorities aim to avoid scenarios where renewable growth outpaces infrastructure readiness.
This balanced approach ensures:
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Continued investor confidence
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Predictable regulatory environment
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Long-term viability of the national grid
For property investors, policy stability is just as important as incentives.
What Homeowners Should Do Before 2026
As Solar ATAP approaches, homeowners and buyers may consider:
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Assessing roof suitability and orientation
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Understanding single-phase vs three-phase requirements
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Evaluating current and future power demand
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Consulting certified solar installers early
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Considering solar readiness when buying new homes
Early preparation allows households to maximise benefits once applications open.
Conclusion: Solar ATAP Signals a Maturing Renewable Energy Market
The introduction of Solar ATAP marks a pivotal shift in Malaysia’s rooftop solar policy—from subsidy-driven expansion to a more structured, market-aligned framework. By allowing excess energy sales, raising capacity limits and removing rigid quotas, the programme balances growth with grid resilience.
For homeowners, investors and developers within the kl property market, Solar ATAP strengthens the case for solar integration as part of long-term asset planning. As sustainability, cost efficiency and energy independence become increasingly important, properties aligned with renewable energy policies are likely to stand out.
To explore future-ready homes and developments aligned with Malaysia’s evolving energy landscape, visit klproperty.cc for expert insights and curated property opportunities.
