# Renewable Energy in Malaysia: Targets, Schemes and Who Each One Is For

> A neutral, whole-of-landscape guide to renewable energy in Malaysia — the national targets (31% by 2025, 40% by 2035, 70% by 2050 under NETR), the alphabet soup of schemes (FiT, NEM 3.0, LSS, CGPP, CRESS, SELCO), and which programme fits a homeowner, a business, or a developer.

- Category: energy
- Language: en
- Status: published
- Updated: 2026-08-14
- Canonical: https://negaraku.md/en/energy/renewable-energy-in-malaysia

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If you have tried to read up on renewable energy (RE) in Malaysia, you have probably hit three different target numbers — 31%, 40% and 70% — and a wall of acronyms: FiT, NEM, LSS, CGPP, CRESS, SELCO. None of it is contradictory; it is just spread across half a dozen agencies, each documenting only its own corner. This guide pulls the whole landscape into one place: the national targets and the roadmaps behind them, the family of schemes, and — the part most sources skip — which programme is actually meant for a homeowner, a business, or a developer.

## Is the target 31%, 40% or 70%?

All three. They are milestones on the same trajectory, set across two overlapping roadmaps.

The **Malaysia Renewable Energy Roadmap (MyRER)**, published by the Sustainable Energy Development Authority (SEDA), sets the near-term marker: a **31% renewable-energy share in the national installed-capacity mix by 2025**. MyRER projects over **MYR 53 billion** in investment and **46,636 job creations** in reaching its goals.

The wider **National Energy Transition Roadmap (NETR)** then carries the trajectory forward: **31% of installed capacity by 2025, 40% by 2035, and 70% by 2050**. A key nuance often lost in headlines — the 70% figure is renewable energy as a share of electricity **generation / installed capacity**, not of the whole energy system. In capacity terms, Malaysia's installed renewable capacity is expected to expand from about **6 GW to 14 GW** on the way there.

NETR is broader than solar panels. It is built on six energy-transition levers — **Energy Efficiency, Renewable Energy, Hydrogen, Bioenergy, Green Mobility, and Carbon Capture Utilisation and Storage** — structured into **10 flagship catalytic projects**. Those flagships are expected to draw over **RM25 billion** in investment, while the broader energy transition is framed as an **RM1.2 trillion to RM1.3 trillion** opportunity by 2050. Underpinning all of it is a **net-zero greenhouse-gas-emissions aspiration by 2050**.

On the fossil side, **coal-fired power generation is to be fully phased out by 2044** under the NETR, with roughly half of coal capacity retired by 2035 — the government position stated by the Energy Transition Minister and reflected in the NETR's Peninsular Malaysia Generation Development Plan modelling. To firm up an increasingly solar-heavy grid, that same generation plan adds **100 MW of battery energy storage (BESS) each year from 2030 through 2034, reaching 500 MW of installed BESS by 2034**.

| Roadmap | Milestone | What it measures |
| --- | --- | --- |
| MyRER | 31% by 2025 | RE share of installed-capacity mix |
| NETR | 31% (2025) → 40% (2035) → 70% (2050) | RE share of generation/installed capacity |
| NETR | Net-zero aspiration by 2050 | Greenhouse-gas emissions |
| NETR | Coal fully phased out by 2044 | Coal-fired generation |

## Which scheme is actually for me?

The schemes sort cleanly by who you are. The two with fully documented self-service mechanics are Net Energy Metering (for self-consumers) and the Corporate Green Power Programme (for corporates buying green power); the rest of the family serves producers and larger buyers.

| You are… | Look at | What it does |
| --- | --- | --- |
| A homeowner (Peninsular Malaysia) | **NEM Rakyat** (part of NEM 3.0) → **SELCO** | Offset your bill with rooftop-solar exports |
| A government ministry or agency | **NEM GoMEn** (part of NEM 3.0) | Same offset mechanism, public-sector quota |
| A commercial or industrial consumer | **NOVA** (part of NEM 3.0) | Virtually aggregate solar across accounts |
| A corporate buyer wanting green power | **CGPP / CRESS** | Buy RE + green attributes via a virtual PPA, or green supply over the grid |
| An RE generator / developer | **FiT, LSS, CRESS, SELCO** | Sell to the grid or supply corporate buyers |

The self-consumption schemes (NEM) and the corporate-supply scheme (CGPP) are detailed below. The generator- and developer-facing programmes work as follows:

- **Feed-in Tariff (FiT 2.0)** — relaunched by SEDA on **17 October 2024** under the Renewable Energy Act 2011, it now covers **biogas, biomass and small hydro only** (solar is no longer under FiT). The 2025 round offered a **190 MW quota**, using a fixed rate for the first 10 years and then a bid-within-band mechanism for the remaining 11 years.
- **Large Scale Solar (LSS)** — the competitive utility-scale solar tender (see the next section).
- **Corporate Renewable Energy Supply Scheme (CRESS)** — launched September 2024 for corporates buying green power over the grid (see below).
- **Self-Consumption (SELCO)** — the Energy Commission's on-site-use scheme with no grid export. Updated guidelines issued **24 December 2024, effective 1 January 2025** removed the 85%-of-max-demand cap, allowed ground-mounted and floating within-premises systems, opened it to agriculture, and require BESS at least equal to solar capacity for systems above 72 kWp. From 1 July 2025, SELCO is the default path for new self-consumers.

## How big is Large Scale Solar (LSS)?

Large Scale Solar (LSS) is Malaysia's competitive tender for utility-scale solar, run since 2016. As reported by the energy ministry (PETRA), **LSS has approved 6,028 MW across six rounds to 117 companies**, with a separate LSS5+ round adding a further **618 MWp**:

| Round | Year | Awarded capacity |
| --- | --- | --- |
| LSS1 | 2016 | 354 MW |
| LSS2 | 2017 | 465 MW |
| LSS3 | 2019 | 491 MW |
| LSS4 | 2020 | 823 MW |
| LSS5 | 2024 | 1,920 MW |
| LSS6 | 2025 | 1,975 MW |

Competitive bidding drove tariffs down sharply over the rounds — from around **39 sen/kWh** in LSS1 and **33.98 sen** in LSS2 to **17.78 sen** in LSS3 and **17.68–24.81 sen** in LSS4, with LSS5 finalised in roughly the **13–16 sen/kWh** range. (The capacity figures are the ministry's; the lowest-tariff series is well documented in industry and legal analysis rather than in a single official tariff table.) Across all schemes — LSS, FiT and NEM — cumulative installed solar PV reached about **5.8 GW (5,777.73 MW) by end-2025**.

## How does Net Energy Metering (NEM 3.0) work?

NEM lets you install rooftop solar, use what you generate, and send the surplus to the grid for credit. **NEM 3.0 ran from 2021 to 2025 with a total quota allocation of up to 2,500 MW**, split into three programmes for three kinds of user:

- **NEM Rakyat — 700 MW**, for domestic consumers in Peninsular Malaysia.
- **NEM GoMEn — 100 MW**, for government ministries and agencies.
- **NOVA (Net Offset Virtual Aggregation) — 1,700 MW**, for commercial and industrial consumers.

The credit mechanism differed by programme. Under **NEM Rakyat and NEM GoMEn**, excess solar energy exported to the grid was credited on a **one-on-one offset basis** against the electricity bill, for up to **10 years**. Under **NOVA**, exported credits were instead valued at the **Average System Marginal Price (SMP)** — a market-referenced rate rather than a straight one-for-one offset — which is why the household and commercial programmes are worth understanding separately.

NEM 3.0 was extended in its final stretch: SEDA offered **additional quota of 50 MW for NEM Rakyat and 300 MW for NOVA**, with applications opening via e-NEM from **25 November 2024** and running until **30 June 2025** (or until quotas were exhausted). **NEM 3.0 concluded at the end of June 2025**, with more than **2,600 MW** awarded in total. From **1 July 2025**, new self-consumers move to **SELCO** (self-consumption with no grid export), and a **Solar ATAP** programme is slated to begin in **January 2026**.

## What about corporates that want green power?

Not every organisation wants to own panels. The **Corporate Green Power Programme (CGPP)** lets a company contract for renewable electricity instead. Under CGPP, **a corporate consumer signs a virtual power purchase agreement (VPPA) with a solar power producer** for the renewable energy and its green attributes, while firm supply is backed up by the electricity utility company. It is, in effect, a way to claim green power without taking on grid-balancing risk yourself.

Demand was strong: the CGPP was **allocated a total quota of 800 MW**, which was **fully subscribed on 8 November 2023 by 32 successful applicants**. For corporates that missed that window, the **Corporate Renewable Energy Supply Scheme (CRESS)** — launched in **September 2024** (Energy Commission guidelines effective 20 September 2024) — offers an alternative. CRESS uses a **Third-Party Access (TPA)** model: a renewable developer sells green electricity directly to a chosen corporate customer over **TNB's grid**, in return for a **System Access Charge (SAC)**. The SAC was originally **25 sen/kWh (firm supply)** and **45 sen/kWh (non-firm)**; from **1 July 2025** it was cut to **20 sen/kWh (firm)** and **40 sen/kWh (non-firm)**, alongside a reduction in the CREAM community access charge from 15 to 9 sen/kWh.

## Who runs all of this — and does it work the same everywhere?

Responsibility is deliberately split across bodies:

- **SEDA (Sustainable Energy Development Authority)** administers the self-consumption and feed-in schemes (NEM, FiT, and the MyRER roadmap).
- **The Energy Commission (Suruhanjaya Tenaga)** and the **Single Buyer** handle programmes such as CGPP, CRESS and SELCO.
- The **energy ministry (NRECC/PETRA)** sets overall policy and owns the NETR.

One structural caveat matters before you assume any scheme applies to you: Malaysia does not run a single national power sector. **Peninsular Malaysia, Sabah and Sarawak operate under separate power-sector regimes.** The NEM programmes described above are framed for Peninsular Malaysia (NEM Rakyat explicitly covers domestic consumers there); Sabah and Sarawak run their own arrangements, so an offer or quota in one region does not automatically exist in another.

## What's next

Malaysia's RE framework moves quickly — quotas open and close, schemes are extended or renamed, and new corporate-supply mechanisms keep arriving. Before you act:

- **Match the scheme to your profile first** (household → SELCO / Solar ATAP; C&I → NOVA while it lasts, then SELCO; corporate buyer → CGPP or CRESS), then confirm the live quota and rules on the administering agency's portal — SEDA for NEM/FiT, the Energy Commission and Single Buyer for corporate programmes.
- **Check your region.** Peninsular, Sabah and Sarawak differ; do not assume a Peninsular scheme is available where you are.
- **Treat any figure flagged under *Verification needed* as provisional** until confirmed against a primary source — the older RE-share-of-consumption splits and MyRER's absolute-MW capacity target remain unverified.

## Sources

- National Energy Transition Roadmap (NETR): Charting a Path to a Sustainable Energy Landscape — https://www.mida.gov.my/national-energy-transition-roadmap-netr-charting-a-path-to-a-sustainable-energy-landscape/ (Malaysian Investment Development Authority (MIDA))
- Malaysia Renewable Energy Roadmap (MyRER) — https://www.seda.gov.my/reportal/myrer/ (Sustainable Energy Development Authority (SEDA) Malaysia)
- Net Energy Metering (NEM) 3.0 — https://www.seda.gov.my/reportal/nem/ (Sustainable Energy Development Authority (SEDA) Malaysia)
- Corporate Green Power Programme (CGPP) — https://singlebuyer.com.my/market/market-operations/programs/cgpp (Single Buyer Malaysia (Energy Commission))
- Malaysia - Renewable Energy (Country Commercial Guide) — https://www.trade.gov/country-commercial-guides/malaysia-renewable-energy (International Trade Administration, U.S. Department of Commerce)
- Over 6 GW of solar approved under Malaysia's large-scale solar program — https://www.pv-magazine.com/2025/10/09/over-6-gw-of-solar-approved-under-malaysias-large-scale-solar-program/ (pv magazine (citing Ministry of Energy Transition and Water Transformation))
- Malaysia's Large Scale Solar 4 / LSS@MEnTARI: Analysis of Results — https://www.lexology.com/library/detail.aspx?g=368a6450-9ece-44ff-808d-c53d96a93327 (Lexology)
- 618 MWp of solar capacity awarded in Malaysia's Large Scale Solar 5+ Programme — https://www.enerdata.net/publications/daily-energy-news/618-mwp-solar-capacity-awarded-malaysias-large-scale-solar-5-programme.html (Enerdata)
- Malaysia — IEA-PVPS (national survey report) — https://iea-pvps.org/about-iea-pvps/members/malaysia/ (IEA Photovoltaic Power Systems Programme)
- Malaysia's solar capacity surpasses 5.7 GW — https://www.pv-magazine.com/2026/04/03/malaysias-solar-capacity-surpasses-5-7-gw/ (pv magazine)
- Malaysia — Renewable Energy Statistical Profile — https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Asia/Malaysia_Asia_RE_SP.pdf (IRENA)
- Govt to end coal-fired power generation by 2044 — Fadillah — https://www.thevibes.com/index.php/articles/news/124574/govt-to-end-coal-fired-power-generation-by-2044-fadillah (The Vibes (statement by Deputy PM / Energy Minister Fadillah Yusof))
- Solar and grid flexibility critical for Malaysia's future electricity affordability and security — https://ember-energy.org/latest-insights/solar-and-grid-flexibility-critical-for-malaysia/ (Ember)
- CRESS — Single Buyer Malaysia — https://www.singlebuyer.com.my/market/market-operations/programs/cress (Single Buyer Malaysia (Energy Commission))
- System Access Charge for CRESS and Community Access Charge for CREAM reduced by up to 40% — https://www.st.gov.my/system-access-charge-cress-and-community-access-charge-cream-reduced-40-driving-corporate-green (Suruhanjaya Tenaga (Energy Commission))
- Govt cuts corporate and community renewable energy grid access fees by up to 40% — https://theedgemalaysia.com/node/768709 (The Edge Malaysia)
- Extension of NEM 3.0 and Additional Quota Offers for NEM Rakyat and NOVA Programme — https://www.seda.gov.my/extension-of-nem-3-0-and-additional-quota-offers-for-nem-rakyat-and-nova-programme-2/ (SEDA Malaysia)
- Self-Consumption (SELCO) — https://www.st.gov.my/sustainability/energy-transition-programmes/self-consumption-selco (Suruhanjaya Tenaga (Energy Commission))
- ATAP — Renewable Energy Malaysia — https://www.seda.gov.my/reportal/atap/ (SEDA Malaysia)
- Feed-in Tariff (FiT) 2.0 quota applications for biogas, biomass and small hydro for 2025 — https://www.seda.gov.my/feed-in-tariff-fit-2-0-quota-applications-for-biogas-biomass-and-small-hydro-resources-for-the-year-2025/ (SEDA Malaysia)

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