Starting 1 August 2025, the Malaysian government will waive the 1.6% KWTBB surcharge — but only for certain renewable energy programmes. If you’re a solar user, you might be wondering: Do I still have to pay?
Let’s break it down.
What is KWTBB?
KWTBB stands for Kumpulan Wang Tenaga Boleh Baharu, which translates to the Renewable Energy Fund in English. It’s a fund administered by SEDA Malaysia (Sustainable Energy Development Authority), as per Section 23 of the Renewable Energy Act 2011 (Act 725). In the implementation of the RE Fund (KWTBB), TNB acts as the collecting agent of the fund for the Government.
What is it used for?
The fund was created to support the development of renewable energy in Malaysia. It’s primarily used to promote the growth of electricity generation from renewable energy resources.
How is the fund collected?
The fund is collected through a 1.6% surcharge on your electricity bill. This appears on your TNB bill as “KWTBB”. This surcharge applies to all customers except for domestic customers with electricity consumption of 300kWh and below per month.
Who is now exempted from paying KWTBB?
Only users under these 3 schemes:
1. Green Electricity Tariff (GET)
This is a voluntary programme offered by TNB. You pay a bit more on your bill in exchange for electricity that’s 100% sourced from certified renewable energy, like solar or hydro. It’s mainly for people or companies who want to support the clean energy movement — even if they don’t install solar panels themselves.
2. Corporate Renewable Energy Supply Scheme (CRESS)
This is a scheme for large companies. Under CRESS, a business can directly source renewable energy from licensed producers through a Power Purchase Agreement (PPA). It’s often used by corporations aiming to meet ESG or carbon reduction goals.
3. Community Renewable Energy Aggregation Mechanism (CREAM)
This is a newer programme designed for residential communities or groups of users — like apartment buildings, housing areas, or cooperatives — to collectively invest in or access renewable energy sources. It helps smaller users enjoy the benefits of clean energy without having to install solar panels individually. Electricity generated is sold to local users—both households and businesses—located within approximately 5 km.
Note: Domestic households (not within these 3 schemes) with monthly electricity consumption of 300 kWh or less (approximately ≤ RM 77/month) are not required to pay the surcharge.
Who is still paying KWTBB?
If you're under any of these solar schemes — the waiver does not apply:
- Standard TNB electricity users not on GET/CRESS/CREAM
- SELCO (Self-Consumption Solar)
- NEM (Net Energy Metering)– including previous NEM 3.0 users
Even with solar panels, if you’re not part of the three listed schemes above, you’ll still be charged KWTBB — on the portion of energy you import from the grid.
Example: You have solar under SELCO
Let’s say you installed solar under the SELCO scheme; you use solar during the day but still draw energy from TNB at night. You still pay1.6% KWTBB on whatever you take from the grid.
When does this take effect?
The waiver begins 1 August 2025.
Why did the government do this?
As of 1 August 2025, the government (via PETRA) announced a waiver of this charge — but only for users under GET, CRESS, and CREAM — to encourage participation in certified green energy programmes. It’s part of PETRA’s (Ministry of Energy Transition and Water Transformation) effort to hit Malaysia’s target of 70% renewable energy by 2050.
In short:
If you’re consciously opting into a certified green energy programme—whether GET, CRESS, or CREAM — the government will reward you by removing the KWTBB charge. Everyone else, including regular solar users under SELCO or NEM, will still be paying that 1.6%.
Is solar still worth it then?
Solar remains one of the most impactful ways to cut costs, reduce carbon, and future-proof your operations. If you're installing solar through SELCO or previously under NEM, you're producing clean energy right from your rooftop.
However, if you're keen to go fully green and avoid the KWTBB surcharge, consider switching to the GET, CREAM or CRESS programme — where you’re actively choosing to power your life or business with certified 100% renewable electricity.
Going green isn’t one-size-fits-all — and that’s a good thing.
Both are powerful steps toward a more sustainable future.
Want help understanding your solar options? Reach out to us here — we’ll guide you every step of the way.
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