Solar ATAP vs NEM Rakyat: What Changed and What It Means for You
If you've been researching solar panels in Malaysia, you've probably heard of NEM Rakyat. Here's what you need to know: NEM Rakyat 3.0 is fully subscribed. The 600MW quota has been filled. You can no longer apply for it.
But this is actually good news. The replacement programme, Solar ATAP (Accelerated Transition Action Programme), launched in January 2026 with no quota limits. Anyone can apply.
Bottom line: If you were waiting for NEM Rakyat to reopen, stop waiting. Solar ATAP is available now with no caps. The economics are slightly different but still strongly favour solar installation.
Key Differences at a Glance
| Feature | NEM Rakyat 3.0 | Solar ATAP |
|---|---|---|
| Status | Fully subscribed (closed) | Open, no quota |
| Quota | 600 MW total | No limit |
| Contract length | 25 years | 10 years |
| Excess energy credit | 1-to-1 offset at retail tariff | System Marginal Price (SMP) |
| Credit rate | RM0.218-0.571/kWh (retail) | RM0.27/kWh (≤1500kWh) or RM0.37/kWh (>1500kWh) |
| Eligible properties | Residential + commercial | Residential + commercial |
| Application | Via SEDA portal | Via SEDA portal |
What is Solar ATAP?
Solar ATAP stands for Accelerated Transition Action Programme. It's the Malaysian government's new framework for residential and commercial solar energy, designed to replace the quota-limited NEM Rakyat programme.
The biggest change: there is no quota. Under NEM Rakyat, once 600MW of capacity was allocated, the programme closed. Solar ATAP removes this cap entirely, meaning any homeowner can install solar and benefit from net metering regardless of how many others have already done so.
How Solar Credits Work Under Solar ATAP
Under NEM Rakyat, excess solar energy you exported to the grid was credited at the same rate you pay for electricity (1-to-1 offset). Under Solar ATAP, excess energy is credited at the System Marginal Price (SMP):
- RM0.27/kWh for monthly consumption up to 1,500 kWh
- RM0.37/kWh for monthly consumption above 1,500 kWh
This means the credit rate is lower than the retail tariff rate (which goes up to RM0.571/kWh for high consumption). However, the primary benefit of solar remains self-consumption: using solar energy directly to reduce your TNB bill, rather than exporting it.
Practical impact: For most homeowners, 60-80% of solar energy is consumed directly (never exported). The SMP rate only affects the 20-40% you export. The overall savings are still substantial, typically covering 70-90% of your monthly TNB bill.
What About SolaRIS?
SolaRIS (Solar Rakyat Incentive Scheme) is a separate rebate programme that provides direct financial incentives for solar installation. It can be combined with Solar ATAP. Check with your installer or SEDA for current rebate amounts and eligibility.
Is Solar Still Worth It Under Solar ATAP?
Yes. Here's why:
- Self-consumption saves at full retail rate: Every kWh you use directly from your panels saves you RM0.218-0.571 (depending on your consumption tier). This hasn't changed.
- No quota means no waiting: Under NEM Rakyat, you might have been told "quota full, try again next year." That's gone.
- 10-year contracts are less risky: A 10-year commitment is easier to evaluate than 25 years. Technology improves, panels can be upgraded.
- Panel costs continue to fall: Despite a recent price increase due to China's VAT rebate removal, the long-term trend is downward.
What Should You Do Now?
If you've been considering solar:
- Use our calculator to estimate your savings based on your current TNB bill
- Get quotes from up to 3 SEDA-registered installers in your area
- Ask about Solar ATAP and SolaRIS when comparing quotes, as your installer will handle the application
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