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Self-Consumption (SELCO)
When you install a solar photovoltaic (PV) system onto your own rooftop and fully utilise all the solar energy generated from it, it will be considered as SELCO. Any excess will not be exported to the grid.
Installing solar PV for self-consumption helps consumers in the residential, commercial, and industrial sectors to reduce their overall energy use. As of 1 January 2025, the Malaysian government expanded the SELCO programme so more solar power can be generated for own use.
Benefits of Self-Consumption (SELCO)
Aimed at reducing business costs through the use of solar PV systems in the commercial and industrial sectors, the program enables successful applicants to:
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Consume the electricity generated with a solar PV system without relying on the TNB grid.
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Hedge against TNB tariff hikes and increasing electricity pricing. Self-consumption promises greater independence from the grid and future electricity rate variation.
Understanding Self-Consumption (SELCO)
The solar array converts energy from sunlight into electricity
The inverter converts the electricity produced by the solar array from Direct Current (DC) to Alternating Current (AC) for use in your business and measures the energy produced by the solar array.
The energy is used in your business.
The meter records the usage. Any excess electricity generated by the PV solar system will not flow back to the grid.
SELCO: Eligibility
Under the Electricity Supply Act 1990, an individual is entitled to apply for SELCO if they meet the following requirements:
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Using, working, or operating any solar PV generating facility for self-consumption and indirect connection to the licensee distribution network in Peninsular Malaysia and Sabah.
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The relevant distribution licensee (DL) whose network is to relate to the self-consumption solar PV generating facility.
Commercial and industrial users can meet their energy needs entirely through solar power, without the previous 85% capacity cap.
No Capacity Limits
Ground-mounted and floating solar installations above water are now allowed, as long as they are within the user's premises.
Solar Beyond Rooftops
SELCO will be extended to the agricultural sector, where they can install solar PV systems to power operations, reduce costs, and promote sustainability.
Agricultural Sector Included
Battery Energy Storage Systems (BESS) are required for systems above 72 kWp to ensure grid stability. Along with a standby charge of RM14/kWp per month, the ROI of solar PV systems will extend from 2 to 4 years*—still a high-value investment given solar's 25-year lifespan.
*Based on TNB Commercial Tariff B and an installed solar capacity of 2 MWp.