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What is Malaysia's Community Renewable Energy Aggregation Mechanism (CREAM)?
- Ng Yew Weng
- Feb 21
- 3 min read
Updated: Apr 3
by Ng Yew Weng
Table of Contents:
Introduction to the Community Renewable Energy Aggregation Mechanism (CREAM) in Malaysia
Malaysia's Community Renewable Energy Aggregation Mechanism (CREAM) was announced in February 2025. This government initiative is designed to maximise residential rooftop solar potential, enabling homeowners to lease or rent out their rooftops to third parties for solar power generation. If you want to skip ahead and see how you can get involved in CREAM, click here. Otherwise, keep reading to learn more.
At Progressture Solar, we have successfully managed over 800 completed and ongoing clean energy projects, resulting in the generation of 131,400,000 kWh of clean energy and the prevention of 99,600 tonnes of carbon emissions annually. Based on our extensive experience within the energy sector, here is all you need to know about the CREAM initiative in Malaysia.
How Does CREAM Work?
CREAM is a residential rooftop solar aggregation initiative. It is adapted from the Corporate Renewable Energy Supply Scheme (CRESS), which operates through an open grid access concept. A new initiative by the Ministry of Energy Transition and Water Transformation (PETRA), CREAM aims to facilitate the deployment of rooftop solar in residential areas.
Here's how it works:
Homeowners lease or rent their rooftop space to third-party solar developers.
Solar developers aggregate multiple rooftops to develop a solar PV power generation system.
Clean electricity is generated and supplied to local consumers, including corporate entities, who wish to source green electricity.
The utility company's existing distribution network will ensure clean energy reaches the right consumers.
Read the official media statement by PETRA below:
Why Was CREAM Established?
CREAM was introduced to:
Increase local renewable energy generation
Homeowners not only unlock their rooftop solar potential but also monetise unused rooftop space by leasing it to developers.
Expand access to renewable energy
Align with Malaysia's ambitious goals
The CREAM Guidelines
In March 2025, the Malaysian government released its latest guidelines for CREAM. The key points are as follows:
Under CREAM, an energy company can lease residential rooftop space to install solar panels. The generated electricity can be sold to any customer within a stipulated 5km vicinity.
Energy companies will manage rooftop leasing agreements with homeowners on their own.
To use the distribution network, participants will be charged a flat "community access charge" of RM0.15/kWh.
There is no requirement for firm electricity supply.
Download the full CREAM guidelines below:
In summary, these new updates are set to benefit landed households. For example, a landed property with lower electricity consumption can install solar panels under the Net Energy Metering (NEM) programme to offset its bill. Subsequently, it could also install solar panels under CREAM to generate rental income.
CREAM serves to complement Malaysia’s existing renewable energy schemes such as CRESS, Large Scale Solar (LSS), and Battery Energy Storage System (BESS) initiatives.
Interested to find out how CREAM can benefit homeowners, property developers, and businesses looking to participate in Malaysia’s green energy transformation? Contact us to learn more now.
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