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SHAH ALAM, Oct 29 – Any proposal to set the credit rate for excess solar energy under the Solar Accelerated Transition Action Programme (Solar ATAP) as a percentage of the total retail electricity tariff requires a comprehensive evaluation.
Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof said that under the current mechanism, excess energy exported to the grid can be used to offset electricity bills, subject to the rates and conditions stipulated in the programme guidelines.
Fadillah said the Solar ATAP mechanism was designed to encourage rooftop solar installations based on the principle of self-consumption, with the current offset rate for domestic consumers based on the energy charge component of the electricity tariff.
“This approach accounts for the fact that the retail electricity tariff also includes other cost components related to the provision and use of the electricity supply system, such as grid infrastructure and system services, which remain necessary for solar users when their solar generation is insufficient.
“Consequently, any proposal to set the credit rate for excess energy at 100 per cent or 75 per cent of the total retail tariff requires a comprehensive evaluation.
“Such an assessment must consider the impact on the costs of the electricity system, as well as the risk of ‘cost shifting’ between solar users and non-solar users,” he said in a written parliamentary reply dated October 28.
He was replying to a question from Sri Gading MP Aminolhuda Hassan, who wanted to know whether the government intended to revise the credit rate for excess solar energy under the Solar ATAP scheme to 100 per cent, or at least 75 per cent, of the retail electricity tariff to increase bill savings and encourage the installation of residential solar systems.
Fadillah said the government would continue implementing the Solar ATAP scheme under the existing mechanism while monitoring the programme’s performance, consumer participation and impact on the grid.
He added that any future improvements would be based on implementation data and appropriate technical and economic studies.
Solar ATAP was introduced on January 1 as part of the government’s energy transition initiative. The programme succeeds the Net Energy Metering (NEM) Programme, which ended on June 30, 2025.
Fadillah said the government had also introduced the Sustainable Rebate and Incentive Assistance (SuRIA) Home rebate initiative to help reduce the upfront costs of installing residential solar systems.
“This approach enables the government to enhance the ability of the public to install solar systems without placing the entire burden of the incentive costs on other electricity consumers,” he said.
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