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by Ng Yew Weng
Table of Contents:
What 2025 Renewable Energy Incentives are Available in Malaysia?
2025 is an exciting year for Malaysia's renewable energy sector! From added Net Energy Metering (NEM) quotas to new updates to the Corporate Renewable Energy Supply Scheme (CRESS), the Malaysian government is making clean energy more accessible than ever before. If you want to skip ahead and see how you qualify for an incentive, 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 Malaysia's renewable energy incentives in 2025.
Corporate Renewable Energy Supply Scheme (CRESS)
The Corporate Renewable Energy Supply Scheme (CRESS) is Malaysia’s latest initiative to open up the electricity grid, allowing corporate consumers to procure renewable energy directly from independent green power producers. Previously, only new or expanding businesses could access third-party renewable energy under limited conditions. With CRESS, all existing commercial and industrial (C&I) consumers connected to the grid at medium or high voltage levels can now procure clean electricity through the open market—making it a game-changer for businesses seeking long-term sustainability.
CRESS can potentially unlock these benefits for businesses:
Direct access to renewable energy
Source clean electricity directly from renewable energy developers, locking in long-term electricity pricing and hedging against future tariff hikes.
Own Renewable Energy Certificates (RECs)
Gain ownership of the green attributes, or RECs, associated with the green electricity used. Eliminate the need for separate REC purchases.
Additionally, the government has announced the Community Renewable Energy Aggregation Mechanism (CREAM). Adapted from CRESS, it aims to maximise residential rooftop solar potential, enabling homeowners to lease or rent out their rooftops to third parties for solar power generation.
To learn more about CRESS, check out our blog here.
Net Energy Metering (NEM)
Net Energy Metering (NEM) allows excess solar-generated electricity to be fed back into the grid. In return, homeowners or business owners will receive credits for the energy, which can be used to offset TNB bills. NEM has been running since 2021, and is split into three categories:
NEM Rakyat | NEM GoMEn | NEM NOVA | |
Description | Specifically for homeowners | Allocated for government buildings | Only for commercial or industrial sectors |
Quota Allocation (Since 2021) | 600 MW | 100 MW | 1700 MW |
Valid Until | 30 June 2025 | 30 June 2025 | 30 June 2025 |
For a limited time only, the Malaysian government is running the Solar for Rakyat Incentive Scheme (SolaRIS), which offers a rebate of up to RM4,000 for solar installations registered under NEM Rakyat.
Discover more about NEM here.
Self-Consumption (SELCO)
In the Self-Consumption (SELCO) programme, businesses or homeowners can install a solar PV system onto their own rooftop and fully utilise all the solar energy generated from it. Any excess will not be exported to the grid.
As of 1 January 2025, the Malaysian government expanded the SELCO programme accordingly:
No more capacity limits
Previously, the installed capacity for SELCO was capped at 85%. Now, commercial and industrial users can meet their energy needs 100% through solar power.
Ground-mounted and floating solar allowed
Includes the agricultural sector
Battery Energy Storage Systems (BESS) requirement
Find out how SELCO and BESS can be a high-value investment for your company here.
Green Technology Tax Incentives
Did you know that Malaysia has introduced the Green Technology Tax Incentive to encourage the growth of Malaysia's green economy? Through the Green Investment Tax Allowance (GITA), companies investing in green technology, such as solar PV systems, are eligible for a tax allowance equivalent to 60% of the qualifying capital expenditure (incurred within a five-year period).
Learn more about the range of Green Technology Tax Incentives available here.
Other Malaysian Programmes and Schemes to Look Out For
The Malaysian government is making great strides in expanding renewable energy access, with 2025 set to be a year of progress for this sector. On top of all the schemes mentioned, bidding for Large Scale Solar (LSS 6) is planned for the second quarter of 2025, while bidding for the BESS programme will likely open in the third quarter of this year.
At Progressture Solar, we remain committed to keeping you informed and helping you navigate these incentives—ensuring that you maximise cost savings while contributing to a greener future. Stay tuned for the latest updates or contact us now to learn how you can take advantage of these incentives.
Why You Can Trust Progressture Solar
Progressture Solar is committed to helping businesses achieve net zero by offering tailored solutions for specific needs. As a leading clean energy provider and net-zero partner, our in-house team of experts and professionals reviews our content for accuracy. We also use updated data, facts, and expert advice in all our content.
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