The Malaysian government has announced adjustments to the Solar for Self-Consumption (SELCO) Program, introducing new exemptions and charges to enhance renewable energy adoption. The revised policy, which replaces the previous directive issued by the Energy Commission (ST) on December 31, 2024, aims to provide greater flexibility for solar energy users while supporting the country’s clean energy transition.

Under the updated SELCO framework:

• The requirement for installing an energy storage system is exempted until December 31, 2025.
• Solar installations with a capacity below 1MWp are exempted from standby charges.
• Installations exceeding 1MWp will be subject to a standby charge of RM12 per kWp.
• Higher Education Institutions (HEIs) registered with the Ministry of Higher Education and installing systems above 1MWp are exempted from both standby charges and the requirement to install an energy storage system.

These policy changes are expected to encourage more businesses and institutions to adopt solar energy while maintaining grid stability.

The Energy Commission (ST) will update the Solar Photovoltaic Guidelines for Self-Consumption (SELCO) to reflect these new measures. The revised guidelines will be made available on the ST website for industry players, investors, and other stakeholders.

The Malaysian government continues to refine its solar energy policies to accelerate the adoption of renewable energy solutions, aligning with the nation’s sustainability and carbon neutrality goals.