TNB Tariff Malaysia 2026: Full RP4 Rate Guide for Homes & Businesses

Brief History of the TNB Tariff

Malaysia’s electricity tariff structure isn’t static – it has changed several times over the past decade:

• Before 2014: Flat tariff, rarely reviewed, not responsive to fuel cost changes.
• 2014: Introduction of tiered tariff structure and the ICPT mechanism to pass fuel cost fluctuations to consumers more transparently.
• 2020-2021: The FiT solar incentive scheme closed to new registrations; NEM became the main solar incentive pathway.
• 1 July 2025 (RP4): Base tariff rose 14.2%, ICPT was replaced by AFA (monthly review), and the optional ToU scheme was expanded to all users.
• 1 January 2026: Solar ATAP replaced NEM as the main solar incentive scheme.

Overall trend: base tariffs rise gradually in line with infrastructure costs and the national energy transition, while the adjustment mechanism (ICPT/AFA) is reviewed more frequently to reflect real costs more accurately.

TNB Domestic (Residential) Tariff Structure (RP4)

Starting 1 July 2025, Peninsular Malaysia’s base electricity tariff rose 14.2% (from 39.95 sen/kWh under RP3 to an average 45.62 sen/kWh under RP4). The domestic tariff structure is now broken down into these components:

On top of this, there’s the Energy Efficiency Incentive (EEI) – a tiered rebate offering up to 25 sen/kWh discount for the first 200 kWh, tapering gradually to zero above 1,000 kWh usage. This means low-usage households (under 600 kWh) actually pay a much lower effective rate than the “estimated total” figures above suggest.

Worked Example: Household Using 900 kWh/Month

The actual figure on your bill will differ slightly after subtracting EEI and adding/subtracting that month’s AFA. Use the calculator below for an estimate closer to your own situation.

TNB Commercial & Industrial Tariff Structure

Tariffs for businesses (C1, C2 categories) and industry (E1, E2, E3 categories) use a different structure from domestic – typically including a separate Maximum Demand (MD) charge on top of the energy charge (kWh), and varying by connection voltage (low/medium/high). Broadly:

• C1/C2 (Commercial): for shops, offices, restaurants – low voltage connection, usually no separate MD charge for small demand.
• E1-E3 (Industrial): for factories – medium/high voltage connection, MD charge based on the highest demand (kW) over any 30-minute period in the month, separate from the energy charge (kWh).

Under RP4 (effective 1 July 2025 to 31 December 2027), Non-Domestic tariffs are broken down by connection voltage (Low/Medium/High) and by scheme (General or Time-of-Use). Here are the full base rates:

Low Voltage (Commercial – Tariff B/C1, Industrial – Tariff D)

Medium Voltage (Commercial – Tariff C1/C2, Industrial – Tariff E1/E2)

High Voltage (Commercial – Tariff C3/C4, Industrial – Tariff E3)

The MD charge is based on your highest recorded demand (kW) in any single 30-minute period during the billing month – not your total energy usage. This is separate from, and on top of, the energy charge (kWh), and for medium/high voltage industrial accounts it’s often the single largest line item on the bill. Solar with battery storage can specifically target MD reduction through “peak shaving” – discharging stored energy during your highest-demand periods.

If you run a shoplot, office, light factory or warehouse and want an exact tariff breakdown and how solar can reduce both MD and energy charges, read our Solar for SME Malaysia guide or contact us for a free bill audit.

AFA (Formerly ICPT) – Why Your Bill Fluctuates

Beyond the base rates above, your TNB bill is also subject to AFA (Automatic Fuel Adjustment) – a mechanism formerly known as ICPT. This is an additional charge/rebate based on fluctuations in generation fuel costs, calculated monthly and capped at a maximum of +/-3 sen/kWh. Read our full ICPT/AFA explanation and how solar can protect you from its swings.

Peak Hours (Time-of-Use) – An Option To Save More

Besides the standard tariff, TNB also offers an optional Time-of-Use (ToU) scheme that charges different rates by time – cheaper during off-peak hours, more expensive during peak hours (2pm-10pm on weekdays). This scheme can save you money if your usage pattern fits. Read the full peak hour schedule & ToU rates.

TNB Tariff & ToU Calculator

Use the calculator below to estimate your TNB bill and compare the standard tariff with ToU based on your actual usage pattern:

How Solar Reduces The Impact Of Rising TNB Tariffs

With the base tariff up 14.2% in July 2025 and AFA fluctuating monthly, electricity costs are getting harder to predict. Solar panels give you control – every kWh you generate and use yourself isn’t subject to TNB rates, AFA, or future tariff hikes.

• Residential: Solar Panel for Home or Solar + Battery
• Business/SME: Solar for SME & Factory or Solar + Battery for Business
• Available incentives: Read Solar Incentives Malaysia 2026 for Solar ATAP, GITA & GITE

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Frequently Asked Questions

Note: All rates above are based on the RP4 tariff structure effective 1 July 2025 and sourced from official TNB/myTNB information. AFA rates and other charges are set by the Energy Commission and may change monthly – please check your actual bill on myTNB for the latest figures before making financial decisions.