NEM vs ATAP For Residentials in Malaysia: What’s the Difference?

Thinking about installing solar panels in Malaysia? You may have heard of NEM and Solar ATAP.

So, what’s the difference?

Simple Version: 

NEM was the previous rooftop solar programme, while Solar ATAP is the current programme introduced in 2026.

Both are very similar:

☀️ Generate solar power
→ 🏠 Use it in your home/business
→ ⚡ Export excess electricity to the grid
→ 💰 Receive an electricity bill offset

The key difference is how exported electricity is credited.

– NEM: 1:1 offset (up to RM0.57/kWh for homes)
– ATAP: based on Energy Charge (From RM0.27-0.37/kwh based on tariff type)

From here, you can see that Solar ATAP’s export worth less than NEM. However, there are ways homeowners can still make it a good investment.
– Don’t oversize your system, since unused credits don’t roll over
– Size your solar around your actual usage, not your roof space
– Consider a battery if you use more power at night.

Ask your installer to explain this before you sign or if you are searching for reliable installers, click the link below.

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Detailed Version: 

How the two schemes actually differ

Export value. NEM’s headline feature was a 1-to-1 offset: every kWh you exported to the grid cancelled out a kWh you drew back later, at full retail rate. Under Solar ATAP, exported energy is credited at a lower rate than what you pay for grid electricity — for residential users, credits are applied at the TNB Energy Charge rate (roughly RM0.27/kWh for usage up to 1,500 kWh a month, and RM0.37/kWh above that), rather than a full 1-for-1 swap. Self-consumption — using the power you generate in real time — is now worth noticeably more than exporting it.

Credit rollover. This is the change that trips people up most. NEM credits could roll over between billing periods. Under Solar ATAP, most residential accounts see credits reset monthly: whatever surplus you don’t use to offset that month’s bill is forfeited, it doesn’t carry forward. This makes correctly sizing your system, and possibly adding a battery, more important than it used to be.

Quotas. NEM operated on a fixed national quota that filled up fast, often within days of a new allocation window opening, leaving many applicants on a waiting list. Solar ATAP has no fixed quota, so you can apply year-round without racing a deadline.

System size limits. Solar ATAP has actually loosened the caps for residential (Tariff A) users: single-phase homes are capped at 5 kWp, while three-phase homes can go up to 15 kWp with Energy Commission (CCC) approval, up from the 12.5 kWp ceiling under NEM.

What doesn’t change. Both schemes work the same way operationally: your panels generate power, your home uses it first, and the surplus is exported to the grid. Installation still requires a SEDA-registered installer (RPVSP) — DIY installs aren’t accepted — and the application is still submitted through SEDA on your behalf.

Quick comparison

What this means if you’re installing solar today

You no longer have a choice between the two — Solar ATAP is the only scheme available for new residential installs. The practical takeaway is a shift in mindset: solar under NEM rewarded generating and exporting as much as possible, while Solar ATAP rewards using what you generate. That has two knock-on effects worth thinking about before you sign a quote:

• Right-sizing matters more. An oversized system that exports heavily during the day will see a chunk of that value forfeited each month rather than banked for later. A system sized closer to your actual daytime and evening usage pattern tends to perform better financially.
• Batteries are more attractive than before. Because exported energy is worth less than self-consumed energy, and credits don’t roll over, storing your midday surplus for evening use can meaningfully improve your payback period — especially if your household uses more power at night.

  Get Free Solar Quotes from ShopGreen’s Verified Suppliers — Time-saving, Quality Systems!