Renewable Energy: Malaysia introduces Solar for Rakyat Incentive Scheme and increases NEM Rakyat quota

Malaysia’s Ministry of Energy Transition and Water Transformation announced on 27 March 2024 that it would be introducing the Solar for Rakyat Incentive Scheme (‘SOLARIS’)1. This scheme is  a special incentive for domestic consumers that is aimed at encouraging the installation of solar photovoltaic systems under the Net Energy Metering (‘NEM’) programme.
Under SOLARIS, a rebate of RM1,000/kWac (up to a maximum of RM4,000) will be offered to new participants in the NEM Rakyat programme that submit their applications for quotas to the Sustainable Energy Development Authority  on and after 1 April 2024.
The rebate will be paid after the installation and commencement of operations of the solar photovoltaic system. Such payment will be deposited in the nominated local bank account of the consumer, subject to the applicable terms and conditions for claiming a rebate under SOLARIS.
The eligibility criteria for claiming a rebate under SOLARIS are as follows: 
  • SOLARIS is only open to Malaysian citizens that have a valid account with Tenaga Nasional Berhad (‘TNB’).
  • Participants must be first-time applicants for the NEM programme.
  • The solar photovoltaic system under an approved NEM Rakyat application must commence operations by 31 March 2025. 
The rebate under SOLARIS will be given on a “first come, first served” basis to applications for NEM Rakyat quotas from 1 April to 31 December 2024 or until the allocation for the rebate has been fully taken up, whichever is the earlier. TNB will be responsible for managing the allocation of the rebate.
In tandem with the introduction of SOLARIS, the Malaysian Government has approved the release of an additional 100MW quota for the NEM Rakyat programme. This will bring the total quota allocated under NEM Rakyat to 350MW. Applications for the quota will be open until 31 December 2024 or until the quota has been fully taken up, whichever is the earlier.
Rooftop solar installations are considered as a quick step that will support the Malaysian Government’s efforts to achieve the target of 70% renewable energy installed capacity by year 2050 as well as to reduce carbon emissions in the electricity supply sector. With the introduction of SOLARIS, it is expected that solar generation by the general public will increase and more domestic consumers will be able to enjoy the benefits of having rooftop solar installations at their homes. This will also contribute towards the nation’s aspiration to be net-zero by 2050.
It is pertinent to note that under the National Energy Transition Roadmap2, solar energy has been identified as being the most encouraging segment of Malaysia’s renewable energy landscape, with an estimated potential of reaching 269GW. Rooftop solar installations, which involve relatively straightforward installation works and a short time for operationalisation, are an effective way to accelerate the deployment of solar energy. Moreover, it plays a significant role in providing accessible energy to and lowering energy costs of consumers. It is likely that we will see further incentives and initiatives in relation to rooftop solar being introduced in the near future.
Alert by Richard Khoo (Partner) and Rachel Chiah (Senior Associate) of the Energy Practice of Skrine.

1 The media statement issued by the Ministry of Energy Transition and Water Transformation on SOLARIS can be accessed here.
2 Our earlier Alerts on the National Energy Transition Roadmap are available here and here.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact