Power Technologies
Schemes, tax & approvals
Solar incentives and approvals in Malaysia
Malaysian solar projects sit inside a framework of tax incentives — principally the Green Investment Tax Allowance (GITA) and Capital Allowance — and grid schemes including NEM 3.0, NEM NOVA, SELCO and Solar ATAP. Which combination applies depends on whether you are a business or a household, and on how you intend to use or export your generation. EVOLTS determines the right route and lodges every submission on your behalf.
Tax incentives for businesses
Green Investment Tax Allowance (GITA)
GITA provides an allowance on qualifying capital expenditure for approved green technology assets, including solar PV. It is claimed against statutory income, which means its value depends on your company’s tax position — a profitable manufacturer benefits far more than a loss-making one.
Capital Allowance
Standard capital allowance treatment applies to qualifying plant and equipment. Combined with GITA, total relief on a commercial solar investment can reach a substantial proportion of capex — the figure often quoted in the market is up to 48%, though the achievable number is specific to your circumstances.
GITE
Green Income Tax Exemption applies to qualifying green service providers rather than asset owners. It is relevant if you are structuring a solar service or leasing arrangement rather than buying a system outright.
We are solar engineers, not tax agents. We prepare the technical documentation and asset certification that supports a claim, and we will model the indicative effect on payback — but the claim itself should be confirmed with your tax adviser against current MIDA and LHDN guidance.
Grid schemes — which one applies
| Scheme | Who it is for | What it does | Status |
|---|---|---|---|
| Solar ATAP | Residential | Rooftop generation and offset for homes | Available — no quota cap |
| NEM Rakyat | Residential | Earlier residential net energy metering programme (700 MW) | Closed 30 June 2025 |
| NEM NOVA | Commercial & industrial | Net offset virtual aggregation across sites | Available to eligible C&I users |
| NEM GoMEn | Government entities | Public-sector programme | Available to eligible bodies |
| SELCO | Self-consumption | Generation for own use without export | Available |
Homeowners: see the residential Solar ATAP page. Businesses: see commercial and industrial solar.
The approval path
Three authorities are typically involved, and EVOLTS lodges all of it.
- TNB — interconnection application, technical review, metering arrangement and final connection approval.
- Suruhanjaya Tenaga (Energy Commission) — electrical installation compliance and the relevant certification and notification requirements.
- Bomba — fire-safety requirements, particularly where battery energy storage is included or where the building type demands it.
Timelines are driven by the authorities rather than by the installer. What a good contractor controls is submission quality — incomplete or non-compliant applications are the usual cause of delay.
Frequently asked
What is GITA?
The Green Investment Tax Allowance is a Malaysian tax incentive giving an allowance on qualifying capital expenditure for approved green technology assets, including solar PV systems. It is claimed against statutory income.
Can a company claim both GITA and Capital Allowance?
Qualifying companies may benefit from both, and it is the combination that produces the headline relief figures quoted in the market. The achievable total depends on your tax position and should be confirmed with your tax adviser.
Is the NEM quota still available?
NEM 3.0 closed on 30 June 2025, which is why Solar ATAP is the route for new installations. Commercial programmes such as NEM NOVA operate under their own terms. See Solar ATAP.
What is SELCO?
SELCO covers self-consumption generation — installations that supply the owner’s own load without exporting to the grid. It suits sites whose consumption already absorbs everything the array can produce.
Do homeowners get tax incentives?
GITA and Capital Allowance are business incentives claimed against company income, so they do not generally apply to a household. Residential benefit comes through the offset scheme and bill reduction instead.