Existing NEM users can move to Solar ATAP by terminating their NEM contract and applying under the new programme, which began on 1 January 2026 with a 10-year contract. The switch changes how exports are credited, so compare your self-consumption and expected credits before terminating.
Key facts
- Solar ATAP began on 1 January 2026; NEM closed to new applicants on 30 June 2025.
- NEM users can apply for Solar ATAP by terminating their existing NEM contract.
- Existing NEM contracts remain valid under their own terms.
- Domestic export credits follow the prevailing energy charge; non-domestic credits follow the System Marginal Price.
- Solar ATAP contracts run for 10 years.
Can I move from NEM to Solar ATAP?
Yes. The programme lets current NEM users apply, but terminate NEM only when SEDA or TNB confirms the order (see step 4). Solar ATAP took effect on 1 January 2026 (Bernama), and NEM stopped accepting new applicants on 30 June 2025. The programme details are in Solar ATAP explained.
Switching is a choice. Existing NEM contracts remain valid under their own terms, so there is no need to move in a hurry.
What do I give up and gain by switching?
You give up the NEM contract and its credit rules. You gain a 10-year Solar ATAP contract, credits based on the energy charge or the System Marginal Price, and the Solar ATAP capacity limits (The Star).
NEM is closed to new applications, so treat termination as a one-way step.
Should I switch or stay on NEM?
| Switch if | Stay on NEM if |
|---|---|
| You want a larger system than your NEM approval allows, because your use has grown through an electric vehicle, air conditioning or new machinery | Your current system already covers your use |
| Your system is ageing and due for replacement, so a new application can be paired with new panels or a battery | Your export credits under NEM are worth more to you than Solar ATAP credits would be |
| You use most of your solar output on site, so the credit basis matters less | You export a large share and cannot raise your own use |
The deciding number is your self-consumption. The higher it is, the less the export credit basis matters. A battery raises self-consumption further; see whether you need a battery with solar.
What changes for a business on NEM?
A non-domestic NEM user who moves to Solar ATAP is credited at the System Marginal Price, the wholesale electricity price, instead of the earlier one-to-one offset. That price moves with the market, so the credit for each exported unit is no longer fixed in advance.
For a factory that consumes most of its output during the working day, the effect is typically small, because few units are exported. For a site with long idle periods, such as weekends or shutdowns, the export share is larger and the credit basis deserves a line in the financial model. Solar ATAP lets a business size up to 100% of its Maximum Demand, capped at 1 MW.
How do I switch step by step?
- Collect 12 months of TNB bills and note your NEM export and import figures.
- Check eligibility with the Solar ATAP eligibility test and the eligibility checklist.
- Ask an installer to model your savings under both schemes, including any system upgrade.
- Submit the Solar ATAP application through SEDA. Do not terminate NEM until SEDA or TNB has confirmed the order of termination and application, so you avoid a gap in credits.
- Install or reconfigure the system, then commission with TNB.
How ERS Energy helps
The question we hear most from existing NEM owners is whether switching pays. We model your current and proposed systems side by side on your real bills, and tell you if staying put is the better answer. With 2 GWp+ installed since 2009, that comparison is routine work for our residential team. See our residential solar solutions.
Frequently asked questions
Do I lose my NEM benefits if I switch?
Yes. Terminating NEM ends that contract, and your exports are credited under Solar ATAP rules from then on. That is why the comparison of credit values comes before the termination.
Can I go back to NEM after switching?
NEM closed to new applicants on 30 June 2025, so a terminated NEM contract cannot be replaced by a fresh NEM application. Treat termination as permanent and decide with your bills in hand.
Is there a fee to apply for Solar ATAP?
SEDA lists RM1,000 for domestic systems above 5 kW (single phase) or 15 kW (three phase). Non-domestic systems up to 72 kW pay no fee, and larger ones pay RM1,000 to RM8,000 by size, on its Solar ATAP guidelines page.
Does adding a battery change the decision?
It can. A battery stores daytime surplus for evening use, which lifts self-consumption and so reduces how much the export credit basis matters to your savings.
Sources
Facts and figures may vary by the time you read this. This article is for general information only and is not financial, legal, tax or engineering advice. Always double-check key facts and figures with the relevant official source before relying on them.
Not sure whether to switch? We will compare both options using your bills.
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