SEDA (Sustainable Energy Development Authority) Malaysia is a statutory body established in 2011 under the SEDA Act 2011 [Act 726], reporting to the Ministry of Energy Transition and Water Transformation (PETRA). It administers the country's renewable energy incentive mechanisms — the Feed-in Tariff (FiT), Net Energy Metering (NEM) and now Solar ATAP — and manages the Renewable Energy Fund (KWTBB), which is financed by a 1.6% surcharge on electricity bills.
- SEDA was established in 2011 under the SEDA Act 2011 [Act 726]; its functions are listed in Section 15 of that Act.
- SEDA's FiT 2.0 covers biogas, biomass and small hydro; the latest e-Bidding process ran from 15 January to 19 February 2025.
- Additional NEM 3.0 quota (50 MW NEM Rakyat, 300 MW NOVA) was offered until 30 June 2025.
- Solar ATAP replaces NEM from 1 January 2026, with no overall quota cap and a 10-year contract term.
- The KWTBB is collected at a rate of 1.6% of the electricity bill; domestic consumers using 300 kWh a month or less are exempt.
Who this applies to: Homeowners and businesses planning rooftop solar, renewable energy developers, and anyone wanting to understand Malaysia's green energy incentives.
On this page
Every time you pay an electricity bill in Peninsular Malaysia, a small portion of it flows to a statutory body you may never have heard of — and that body is the one deciding whether the solar panels on your roof are worth it or not.
That body is SEDA Malaysia, the Sustainable Energy Development Authority. It was established in 2011 under the SEDA Act 2011 [Act 726] and reports to the Ministry of Energy Transition and Water Transformation (PETRA). In short, SEDA is the official gateway to almost every renewable energy incentive scheme in Malaysia.
What does SEDA actually do?
SEDA’s functions are listed in Section 15 of the SEDA Act 2011. Among its core roles:
- Advising the Minister on sustainable energy policy and fiscal incentives.
- Implementing, managing, monitoring and reviewing the Feed-in Tariff system.
- Promoting private-sector investment in renewable energy.
- Conducting research, innovation and human-resource development programmes.
- Acting as the focal point for energy-related climate change matters.
SEDA does not generate electricity itself. It is a regulatory and administrative body — it sets guidelines, opens quotas, processes applications and manages the fund that finances all of this.
What schemes does SEDA manage?
Three main mechanisms have shaped Malaysia’s distributed renewable energy landscape. Each targets a different group of consumers and sources.
| Scheme | For whom | Current status |
|---|---|---|
| Feed-in Tariff (FiT) | Biogas, biomass, small hydro generators | Active via periodic e-Bidding |
| Net Energy Metering (NEM 3.0) | Domestic, commercial, government consumers | Ended at the end of June 2025 |
| Solar ATAP | Domestic & non-domestic consumers | Effective 1 January 2026 |
Feed-in Tariff (FiT)
FiT is the oldest scheme managed by SEDA: renewable energy generators sell electricity to the grid at a fixed rate for a set period. Under FiT 2.0, quotas are allocated through an e-Bidding process — the latest round ran from 15 January 2025 to 19 February 2025, covering three source categories: biogas, biomass and small hydro.
Net Energy Metering (NEM)
NEM allows rooftop solar owners to export surplus energy to the TNB grid to offset their bills. In the NEM 3.0 extension, SEDA offered additional quota of 50 MW for NEM Rakyat and 300 MW for NOVA, with the offer running until 30 June 2025 or until the quota was exhausted. The NEM programme as a whole ended at the end of June 2025.
Solar ATAP
After the domestic NEM quota was fully taken up, the government introduced Solar ATAP (Accelerated Transition Action Programme) from 1 January 2026. Its key features:
- No overall quota cap — allocation is on a first-come, first-served basis within the application period set by the government.
- Capacity limits: single-phase domestic up to 5 kW, three-phase domestic up to 15 kW, non-domestic up to 100% of maximum demand but not exceeding 1,000 kW (1 MW).
- 10-year contract term; after it ends, the system is for self-consumption only, with no offset.
- Applications through the eATAP portal at atap.seda.gov.my, with the appointment of a registered PV supplier (RPVSP).
Who pays for all this?
Renewable energy incentives have to be funded. The main source is the Renewable Energy Fund (KWTBB) — a fund managed by SEDA under the Renewable Energy Act 2011.
The KWTBB surcharge is levied at a rate of 1.6% on electricity consumption charges, and appears as a separate line on your TNB bill. TNB acts only as the collecting agent; the fund is managed by SEDA. Domestic consumers using 300 kWh a month or less are exempt from this surcharge.
Who is this article for?
- Homeowners considering rooftop solar — SEDA determines which schemes are open and their terms.
- Businesses wanting to cut energy costs through NOVA or commercial Solar ATAP.
- Renewable energy developers taking part in the FiT e-Bidding.
What’s next
This landscape is changing fast. NEM has given way to Solar ATAP, and a net billing model replaces the old calculation. Before making any commitment:
- Check the latest quota balances and guidelines directly on SEDA’s official website, as the figures and dates are updated from time to time.
- For Solar ATAP, make sure you appoint a registered PV supplier (RPVSP) — applications cannot be submitted without one.
- If you are a commercial consumer, compare the export credit rate (SMP versus the retail tariff) before signing a 10-year contract.
This article is an AI-generated draft based on official SEDA and TNB sources; verify critical figures against official documents before acting.
What is SEDA and who oversees it?
SEDA is the Sustainable Energy Development Authority, a statutory body established in 2011 under the SEDA Act 2011 [Act 726]. It reports to the Ministry of Energy Transition and Water Transformation (PETRA).
Does SEDA set the 1.6% surcharge on my electricity bill?
SEDA manages the Renewable Energy Fund (KWTBB), which is financed by a 1.6% surcharge on electricity consumption charges, with TNB acting only as the collecting agent. Domestic consumers using 300 kWh a month or less are exempt.
Is NEM still open?
The NEM 3.0 programme ended at the end of June 2025. It has been replaced by Solar ATAP, which takes effect on 1 January 2026, with no overall quota cap and managed through SEDA's eATAP portal at atap.seda.gov.my.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Tarikh kuat kuasa tepat SEDA (dilaporkan 1 September 2011): laman rasmi SEDA yang dipetik hanya mengesahkan penubuhan 'di bawah Akta SEDA 2011 [Akta 726]', bukan bulan/tarikh tepat. Sahkan terhadap Akta SEDA 2011 (gazet/AGC).
- Kementerian penyelia semasa (PETRA): tidak dinyatakan secara eksplisit pada laman SEDA yang dipetik. Sahkan nama kementerian penyelia terkini dan petik halaman rasmi yang menyatakannya.
- Solar ATAP: sama ada permohonan sentiasa terbuka atau dibuka melalui tetingkap permohonan berkala dengan tarikh buka/tutup ditetapkan kerajaan — sumber berbeza-beza; sahkan pada portal eATAP / garis panduan SEDA terkini.
Sources
- Tentang SEDA Malaysia — SEDA Malaysia
- Overview of SEDA — SEDA Malaysia
- Functions of SEDA — SEDA Malaysia
- Feed-in Tariff (FiT) — SEDA Malaysia
- Extension of NEM 3.0 and Additional Quota Offers for NEM Rakyat and NOVA Programme — SEDA Malaysia
- Solar ATAP (Accelerated Transition Action Programme) — SEDA Malaysia
- What is RE Fund (KWTBB)? — Tenaga Nasional Berhad
- Malaysia introduces rooftop solar scheme to replace net-metering program, Solar ATAP — pv magazine
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 1 Aug 2026 | Approved and published. | — |