How Much Can Solar Save in Malaysia?

Solar Basics

How Much Can Solar Save in Malaysia?

8 July 2026

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Introduction

With electricity costs becoming a growing concern for Malaysian homeowners and businesses, solar energy has become one of the most effective ways to reduce monthly electricity bills. But the question many people ask is: How much can solar actually save in Malaysia?

The answer depends on several factors, including your electricity usage, roof size, solar system capacity, and energy consumption patterns. In this guide, we'll explain how solar savings work and what you can realistically expect.

How Much Can Solar Save in Malaysia?

How Solar Panels Reduce Your Electricity Bill
Average Solar Savings in Malaysia
Example: Residential Solar Savings
Commercial Solar Savings
Factors That Affect Your Savings
How Long Does It Take to Recover the Investment?
Is Solar Worth It in Malaysia?

Update: NEM Has Ended, Solar ATAP Takes Over

2026 update: The NEM (Net Energy Metering) scheme officially ended on 30 June 2025 and is no longer accepting new registrations. The current replacement programme is Solar ATAP (Solar Accelerated Transition Action Programme), effective from 1 January 2026, with cash rebates up to RM3,000 through SuRIA Home. Read the full Solar ATAP guide here →

How Solar Panels Reduce Your Electricity Bill

Solar panels generate electricity during daylight hours. Instead of buying electricity from the grid, your home or business uses the power produced by the solar system first.

When your solar panels generate more electricity than you need, the excess energy can be exported to the national grid under Malaysia's Net Energy Metering (NEM) programme, subject to eligibility and prevailing government policies. This allows you to offset your future electricity consumption and maximise the value of your solar investment.

The more electricity you use during the day, the more savings you can achieve.

Average Solar Savings in Malaysia

Although every property is different, the following estimates provide a general idea.

Monthly TNB Bill	Recommended Solar Size	Estimated Monthly Savings
RM200 – RM300	3–4 kWp	RM100 – RM180
RM300 – RM500	5–6 kWp	RM180 – RM350
RM500 – RM800	7–10 kWp	RM350 – RM600
RM800+	10–15 kWp	RM600+

Many homeowners can reduce their electricity bills by 50% to 90%, depending on system size and daytime electricity usage.

Example: Residential Solar Savings

Imagine a homeowner who pays:

Monthly electricity bill: RM500
Installs a 6 kWp solar system
Uses most appliances during the daytime

Estimated results:

Monthly savings: RM250–RM400
Annual savings: RM3,000–RM4,800

Over 25 years, the total savings could exceed RM100,000, depending on future electricity tariffs and system performance.

Commercial Solar Savings

Businesses often benefit even more because many operate during daylight hours when solar panels produce the most electricity.

Commercial properties such as:

Offices
Factories
Warehouses
Retail shops
Restaurants
Hotels

can often reduce electricity costs by 30% to 70%, resulting in substantial long-term operational savings.

Factors That Affect Your Savings

1. Your Monthly Electricity Usage

Higher electricity consumption generally means greater potential savings because more solar-generated electricity is used directly.

2. Solar System Size

A larger solar system produces more electricity, but it should be designed to match your energy needs. Oversizing may not always provide the best return on investment.

3. Roof Orientation

South-facing or west/east-facing roofs with minimal shading generally produce better solar output throughout the day.

4. Daytime Electricity Consumption

Homes and businesses that use electricity during the day gain the greatest benefit because solar energy is consumed immediately instead of purchasing electricity from the grid.

5. Weather Conditions

Malaysia enjoys abundant sunshine throughout the year, making it well suited for solar energy generation despite occasional cloudy or rainy days.

How Long Does It Take to Recover the Investment?

Most residential solar systems in Malaysia achieve a payback period of approximately:

4–8 years for homeowners
3–6 years for commercial buildings

Since quality solar panels typically last 25 years or more, most of the electricity generated after the payback period represents long-term savings.

Is Solar Worth It in Malaysia?

For many Malaysian households and businesses, the answer is yes.

If your monthly TNB bill exceeds RM200, installing a properly designed solar system can deliver significant long-term financial savings while reducing dependence on conventional electricity.

With Malaysia's favourable climate, improving solar technology, and available financing options, switching to solar has become more affordable and practical than ever.

Frequently Asked Questions

Q: How much can I realistically save on my electricity bill with solar?

A: Savings depend on your electricity usage, roof size, solar system capacity, and daytime consumption pattern, but many homeowners reduce their electricity bills by 50% to 90% depending on system size and daytime electricity usage.

Q: What size solar system is recommended for a RM300-RM500 monthly TNB bill?

A: For a monthly bill in that range, a 5-6 kWp system is typically recommended, with estimated monthly savings of around RM180 to RM350.

Q: Why does daytime electricity usage affect solar savings?

A: Solar panels generate electricity during daylight hours, and your property uses that power first instead of buying from the grid. The more electricity you use during the day, the more of your consumption is offset and the greater your savings.

Q: What happens to excess solar electricity that is not used immediately?

A: Excess electricity generated beyond what your property needs can be exported to the national grid, subject to eligibility and prevailing government policies.

Q: Is the NEM scheme still available for exporting excess solar electricity?

A: No. NEM officially ended on 30 June 2025 and is no longer accepting new registrations. It has been replaced by Solar ATAP, effective from 1 January 2026, which offers cash rebates up to RM3,000 through SuRIA Home.

Get a Free Solar Savings Assessment

Every property has different electricity usage patterns, so the best way to estimate your savings is through a professional assessment.

At Arus Energy, we design customised solar solutions based on your roof size, electricity consumption, and budget. Our team will help you calculate your expected savings and recommend the most suitable solar system for your home or business.

Contact Arus Energy today for a FREE solar consultation and discover how much you could save with solar energy.