Green Financing Malaysia: How GTFS 5.0 Works for Solar (2026)
Contents
GTFS (Green Technology Financing Scheme) is the main green financing route Malaysian companies use to get bank financing for a commercial solar system, with a government guarantee behind it. This page explains how GTFS 5.0 works, based on the official scheme terms published at gtfs.my and administered by MGTC.
Quick answer: GTFS 5.0 is Malaysia’s green tech financing scheme — not a grant, but a 60-80% government guarantee on the green-component cost of a bank loan, backed by Credit Guarantee Corporation Malaysia (CGC). It has a RM1.0 billion allocation valid until 31 December 2026. A company using solar for its own premises (“User of Green Technology” category) can access up to RM50 million in financing over up to 10 years. GTFS 5.0 no longer subsidises the interest/profit rate — that changed from earlier GTFS versions, so the benefit today is the guarantee itself, which makes banks more willing to approve and often improves your terms.
A guarantee scheme is a different animal from a tax allowance or a rebate, and it gets confused with both. GTFS does not reduce your tax bill — that is what GITA does. GTFS does not hand you cash — that is what a rebate does. What GTFS does is stand behind your loan application at a Participating Financial Institution (PFI), so a bank that might hesitate on a new-to-them green asset has 60-80% of the green-component cost covered if things go wrong. For a company financing a solar system rather than paying cash, that guarantee is often the difference between an approved application and a declined one, or between a standard rate and a better one.
Key Takeaways: GTFS 5.0
The short version of how the Green Technology Financing Scheme applies to a commercial solar system.
- GTFS 5.0: RM1.0 billion allocation, valid for applications until 31 December 2026.
- Government guarantee of 60-80% on the green-component cost, provided by CGC, financed through Participating Financial Institutions (conventional and Islamic).
- GTFS 5.0 no longer provides an interest/profit rate subsidy — the benefit is the guarantee, not a discounted rate.
- “User of Green Technology” category (most relevant for a company installing solar for its own use): up to RM50 million per group, tenure up to 10 years.
- Applicant must be a Malaysian-incorporated company with at least 60% Malaysian shareholding.
- Application goes to MGTC first for a Green Project Certificate, then to a PFI for the actual loan and guarantee.
- Minimum upfront fee: RM8,000, refundable if the application is rejected.
What Is GTFS?
GTFS stands for Green Technology Financing Scheme. It is a government-backed loan guarantee programme, not a direct source of funds. The money still comes from a bank or Islamic financial institution — GTFS makes that loan easier to get by guaranteeing a large share of the green-technology portion of it.
The scheme is now in its fifth phase, GTFS 5.0, jointly driven by the Ministry of Investment, Trade and Industry (MITI), the Ministry of Finance, MGTC, and Credit Guarantee Corporation Malaysia (CGC), which administers the guarantee mechanism. MGTC evaluates the technical merit of the green project; CGC and the PFI handle the credit and guarantee side.
This is the incentive most relevant to a company that wants to finance a commercial solar installation through a bank loan rather than paying for it outright — it sits alongside other solar financing options like standard bank loans, hire purchase, and PPA/leasing structures.
How the 60-80% Guarantee Works
The government guarantee covers 60% to 80% of the green component cost financed by the PFI. The exact percentage within that range depends on the specific facility and PFI. This is a guarantee to the bank, not a payment to you — it reduces the bank’s risk, which is what makes banks more comfortable approving green-tech financing and, in many cases, offering better terms than they would on an unguaranteed facility.
Financing is available through both conventional and Islamic PFIs, so a company can choose the structure that fits its existing banking relationship.
Financing Limits and Tenure by Applicant Category
GTFS 5.0 sets different financing ceilings and maximum tenures depending on what kind of applicant you are. Most companies buying solar for their own factory, warehouse or office fall under “User of Green Technology”.
| Category | Financing limit | Maximum tenure |
|---|---|---|
| Producer of Green Technology | RM100 million per group | 15 years |
| User of Green Technology (most relevant for a company installing solar for its own consumption) | RM50 million per group | 10 years |
| ESCO (Energy Service Company) | RM25 million per group | 10 years |
| Housing Developer | RM100 million per group (max RM450,000 selling price per residential unit) | 5 years |
| Low Carbon Mobility Infrastructure | RM50 million per group | 5 years |
A company installing solar and also operating an ESCO-style shared-savings arrangement should confirm with MGTC which category its specific project falls under — the categories are not always mutually exclusive in practice.
Who Qualifies for GTFS
- The applicant is a company legally registered in Malaysia, with at least 60% Malaysian shareholding. Foreign-owned companies below that threshold are not eligible.
- ESCOs must additionally be registered with the Energy Commission.
- Eligible sectors: Energy, Manufacturing, Transportation, Building, Waste, and Water. A commercial solar installation for a company’s own premises falls under Energy/Building depending on how the project is structured.
- The project must be new, retrofitted, or an expansion of an existing facility. Refinancing of an already-completed project is not eligible, and neither is pure R&D.
- A company that was financed under an earlier GTFS phase can reapply under 5.0 if the earlier allocation was not fully utilised.
Want to know if your project qualifies for GTFS?
Send us your site details and rough system size. We will help you understand which GTFS category applies and what a PFI conversation looks like.
How to Apply for GTFS
- Submit an online application to MGTC with the required project and company documents.
- Technical evaluation by MGTC takes approximately 21 working days.
- If approved, MGTC issues a Green Project Certificate, which is valid for 6 months.
- Submit the certificate to a Participating Financial Institution (a bank or Islamic financial institution on the approved PFI list) to apply for the actual financing.
- CGC processes the guarantee approval alongside the PFI’s own credit assessment.
- Once approved, the financing is executed and disbursed according to the project’s drawdown schedule.
- Ongoing: quarterly reporting and an annual monitoring & verification (M&V) audit to confirm the project continues to meet the green criteria it was approved under.
The Green Project Certificate’s 6-month validity is a genuine deadline pressure point — if your PFI conversation and credit approval stretch past that window, you may need to go back to MGTC for a certificate renewal before the loan can be executed.
GTFS Fees
| Fee | Amount |
|---|---|
| Minimum upfront application fee | RM8,000 (refundable if the application is rejected) |
| Additional fee, tenure of 10 years or less | 0.25% of the financing amount |
| Additional fee, tenure of more than 10 years | 0.5% of the financing amount |
| Certificate validity extension | RM4,000 |
| Certificate information modification | RM8,000 |
GTFS vs GITA vs a Standard Bank Loan
These three routes solve different problems, and a company financing solar often uses more than one at the same time — GTFS to get the loan approved on better terms, and GITA to reduce the tax bill on the same asset once it is installed.
| GTFS | GITA | Standard bank loan | |
|---|---|---|---|
| What it does | Government guarantee on a green-tech bank loan | Tax allowance on capital expenditure | Ordinary commercial financing, no guarantee |
| Cash benefit lands as | Easier loan approval, often better terms | Lower tax bill | N/A |
| Administered by | MGTC + CGC + PFI | MGTC | The bank directly |
| Can they be combined? | Yes — GTFS financing and a GITA claim can both apply to the same solar asset | — | |
For the full picture on financing routes, including hire purchase and PPA/leasing structures that do not require GTFS at all, see Solar Panel Financing Options in Malaysia. For the tax side, see the GITA guide.
Financing a commercial solar system?
We work with clients who go through GTFS-backed financing as well as those paying cash or using other structures. We will help you map out which route fits your project.
Why the 31 December 2026 Deadline Matters
GTFS 5.0’s RM1.0 billion allocation is valid until 31 December 2026. Two things can end an applicant’s window before that date: the calendar deadline itself, or the allocation running out earlier if uptake is high. Getting the MGTC technical evaluation and PFI conversation started early protects against both.
A commercial solar project usually takes several months from initial quotation to a signed facility — site survey, technical evaluation, Green Project Certificate, PFI credit approval, then disbursement. Starting the GTFS process close to the deadline leaves little room if any single step runs long.
Related Reading
Frequently Asked Questions About GTFS
The questions Malaysian companies ask most often about green financing and GTFS:
Is GTFS a grant or free money?
No. GTFS is a loan guarantee scheme. The financing still comes from a bank or Islamic financial institution, and you repay it. What GTFS provides is a government guarantee of 60-80% on the green-component cost, which makes the loan easier to get approved and often improves the terms.
Does GTFS 5.0 subsidise the interest rate?
No. GTFS 5.0’s published terms state that it no longer provides an interest or profit rate subsidy — that was a feature of earlier GTFS phases. The benefit under 5.0 is the guarantee itself, not a discounted rate. Confirm the actual rate offered with your PFI, since that is set by the bank rather than by GTFS.
How much can a company borrow under GTFS for solar?
Most companies installing solar for their own premises fall under the “User of Green Technology” category, with a limit of RM50 million per group and a maximum tenure of 10 years. Other categories (Producer of Green Technology, ESCO, Housing Developer, Low Carbon Mobility Infrastructure) have different limits.
Can a foreign-owned company apply for GTFS?
The applicant must have at least 60% Malaysian shareholding. A company below that threshold does not qualify.
Can I use GTFS and GITA on the same solar system?
Yes. GTFS addresses the financing side (getting the loan approved, with a government guarantee) while GITA addresses the tax side (a 60% investment tax allowance on the same capital expenditure). They solve different problems and can both apply to one project.
Who administers GTFS?
MGTC evaluates the technical/green merit of the project and issues the Green Project Certificate. Credit Guarantee Corporation Malaysia (CGC) processes the guarantee. The actual loan is issued by a Participating Financial Institution (PFI) — a conventional or Islamic bank on the approved PFI list.
What does the Green Project Certificate cost and how long is it valid?
The minimum upfront application fee is RM8,000, refundable if the application is rejected. The certificate is valid for 6 months once issued, within which you need to complete the PFI financing process or apply for an extension (RM4,000).
Can a homeowner apply for GTFS?
No. GTFS is for Malaysian-registered companies. A homeowner financing residential solar should look at bank personal/green loan products or hire purchase instead, not GTFS.
What projects are not eligible for GTFS?
Refinancing of an already-completed project is not eligible, and neither is pure research and development. The project needs to be a new installation, a retrofit, or an expansion of an existing facility.
What is the deadline to apply for GTFS 5.0?
The current RM1.0 billion allocation is valid for applications until 31 December 2026, or until the allocation is fully utilised, whichever comes first. Starting the technical evaluation and PFI process early protects against both risks.
Want to see how GTFS-backed financing compares against paying cash or other structures for your specific system size? Read Solar Panel Financing Options in Malaysia, or check the tax side in our GITA guide.
Ready to start?
Talk to the Arus EnerG team about your project. We help you understand which financing and incentive routes actually fit before you commit to a system size.
This page explains a government financing guarantee scheme in general terms based on published GTFS 5.0 information. It is not financial advice. Confirm your company’s eligibility, applicable rate, and current terms with MGTC, CGC or your PFI before applying.
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