As Malaysia accelerates its push toward clean energy, several government incentives are making it easier and more profitable for businesses and homeowners to adopt solar power. Here’s what’s available right now if you're considering making the switch.

Net Energy Metering (NEM) 3.0

The NEM 3.0 scheme allows solar system owners to export excess electricity back to the grid and receive a 1:1 credit offset on their electricity bills. It's available under three categories:

• NEM Rakyat – for residential users
• NEM GoMEn – for government buildings
• NEM NOVA – for commercial and industrial users

NEM credits can be rolled over for up to 12 months. The scheme runs until 30 June 2025, with quotas still available, especially under the NOVA category. This is one of the most direct ways to cut your electricity bills and recover your solar investment faster.

Green Investment Tax Allowance (GITA) & Green Income Tax Exemption (GITE)

These incentives are designed to lower your tax burden when investing in solar:

• GITA allows businesses to claim a 100% capital allowance, which can offset up to 70% of statutory income over 5 years. This applies whether you’re using the solar system internally or for green projects.
• GITE offers up to 70% income tax exemption for solar leasing projects (between 3–30 MW), with durations of 5–10 years depending on project size.

Together, GITA and GITE make solar investments highly tax-efficient and attractive to both asset owners and service providers.

Green Technology Financing Scheme (GTFS)

GTFS offers up to 60% government guarantee on green loans, plus a 2% interest/profit rate rebate for the first seven years. It's ideal for companies that want to adopt solar without heavy upfront costs. The scheme remains open through end-2025, subject to fund availability.

Conclusion
‍With strong incentives like NEM 3.0, GITA, GITE, and GTFS still active in 2025, the Malaysian government is providing a clear signal: now is the right time to invest in solar. These programs lower costs, reduce risk, and improve long-term ROI—making solar energy not just environmentally responsible, but financially smart.

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Source:

• ‍SEDA Malaysia – NEM 3.0 Info Page
• ‍SEDA – NEM 3.0 Extension to 30 June 2025
• ‍SEDA – NEM 3.0 Guidelines
• ‍MGTC – GITA Assets & Projects (MyHIJAU Guidelines PDF)
• ‍MOF – Proposal to extend GITA/GITE period
• ‍GTFS 4.0 – MGTC / GTFS Official Page
• ‍DFDL Insight – Overview of GTFS 4.0 structure & benefits

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