Malaysia Modifies Solar for Self-Consumption (SELCO) Program, Introducing New Exemptions and Charges

The Malaysian government has introduced revisions to the Solar for Self-Consumption (SELCO) Program, implementing new exemptions and charges to further promote renewable energy adoption. This updated policy, which supersedes the previous directive issued by the Energy Commission (ST) on December 31, 2024, aims to enhance flexibility for solar energy users while advancing the nation’s transition to clean energy.

Under the revised SELCO framework:
-The requirement for installing an energy storage system will be waived until December 31, 2025.
-Solar installations with a capacity below 1MWp will not be subject to standby charges.
-Systems exceeding 1MWp will incur a standby charge of RM12 per kWp.
-Higher Education Institutions (HEIs) registered under the Ministry of Higher Education and installing solar systems above 1MWp will be exempt from both standby charges and the obligation to install an energy storage system.

These policy updates are expected to encourage wider adoption of solar energy among businesses and institutions while ensuring grid stability.

The Energy Commission (ST) will revise the Solar Photovoltaic Guidelines for Self-Consumption (SELCO) to incorporate these changes. The updated guidelines will be made available on the ST website for industry stakeholders, investors, and other interested parties.

The Malaysian government remains committed to refining its solar energy policies, accelerating the transition to renewable energy solutions, and aligning with the country’s sustainability and carbon neutrality objectives.