The Net Energy Metering (NEM) program has long been a driving force behind residential solar adoption in Malaysia. For years, it allowed homeowners to export excess electricity from their solar panels back to the grid and receive bill credits — making solar both affordable and attractive.
But as of 1 July 2025, the NEM program ended, with no new residential applicants being accepted. At the same time, TNB introduced a new residential tariff structure, alongside increasing tariff rates and volatility.
So what now?
If you’re a homeowner considering solar — or already have panels installed — here’s how to think about solar post-NEM, and why it’s still a smart investment for the long run.
TNB’s New Residential Tariff: What Changed?
Effective July 2025, TNB’s updated tariff structure replaces the old 5-tier blocks with two tiers based on usage:
| Tariff | Rate | Applies To |
| Tier 1 | ~27.03 sen/kWh | For usage ≤1,500 kWh/month |
| Tier 2 | ~37.03 sen/kWh (+ fixed charges) | For usage >1,500 kWh/month |
On top of this, a new Automatic Fuel Adjustment (AFA) now updates monthly — meaning your energy cost can fluctuate more frequently depending on fuel prices.
In short: Tariffs are higher, more volatile, and harder to predict.
Enter Time-of-Use (ToU) Tariffs: A New Option
TNB has also introduced a Time-of-Use (ToU) scheme for residential homes, which charges based on when you use electricity:
| Time Period | Rate |
| Peak (Weekdays 2PM – 10PM) | 28.52 sen/kWh |
| Off-Peak | 24.43 sen/kWh |
| (Includes all weekends & public holidays, and 10PM–2PM on weekdays) |
This is voluntary and available to homes with smart meters. You can now choose when to use more power — and pay less by shifting heavy usage (like laundry, water heating, EV charging) to off-peak hours.
No NEM, SelCo je
Without NEM, exporting extra solar power to the grid no longer earns credits on your bill. That means the old “sell-back” model is gone.
But solar still offers major advantages — if you shift your strategy.
Instead of exporting energy, the focus now is on self-consumption: using as much of your solar power directly in your home as possible.
Why? Because the less electricity you draw from the grid, the less you pay at rising and volatile TNB rates.
What About Battery Storage?
For homeowners who want to go a step further, battery storage allows you to:
- Store excess solar energy produced during the day
- Use it during peak tariff hours
- Further reduce dependence on the grid
- Gain backup power during blackouts
Batteries are becoming more accessible in Malaysia and can be a game-changer, especially in areas with frequent outages or high night time usage.
Your New Solar Strategy: Self-Consumption + TOU + Battery
Without NEM, you’re no longer trying to “sell” energy back to the grid. Instead, you’re building a smarter, more independent energy system at home.
Here’s how it looks:
- Generate your own solar energy during the day
- Use it directly for appliances and daily loads (self-consumption)
- Store extra in a battery for night-time or peak use
- Shift flexible loads to off-peak times under the ToU plan
- Minimise grid draw — and insulate yourself from rising and volatile tariffs
Is Solar Still Worth It for Homes in Malaysia?
Absolutely — but for different reasons.
It’s no longer just about short-term savings. It’s about:
- Stability in your electricity bills
- Protection against future tariff hikes
- Independence from unpredictable policy changes
- Resilience during grid disruptions
- Sustainability for your household and the planet
In a world where energy prices are going up, this gives you the opportunity to take control and gain energy independence.
The Bottom Line
NEM may be gone, but the future of solar homes in Malaysia is evolving — not ending.
With the right setup and smarter usage habits, you can still save big, gain energy independence, and protect yourself from rising costs.
So if you’re wondering whether to go solar in 2025 and beyond — the answer isn’t just yes.
It’s yes — with a plan.
Chat with us here to find out more!
