Malaysia’s solar energy landscape shifted on 1 July 2025 with the conclusion of NEM 3.0. If you're wondering what’s next — the answer isn’t something entirely new. It’s a scheme that has quietly existed all this while: SELCO, or Self-Consumption.
This guide walks you through what SELCO is, how it works, how it benefits homeowners and businesses, and how Sunview can help you make the shift.
What Is SELCO?
SELCO (Self-Consumption) is a solar programme that allows you to generate and use your own electricity — without exporting any excess power to the grid. Under SELCO, your solar energy is consumed 100% on-site, helping you reduce your monthly electricity bills.
In the past, solar users had the option to join the NEM (Net Energy Metering) solar programme — which allowed excess solar energy to be sent back to the grid, and users received credit (in sen/kWh) in return for it. However, unlike Net Energy Metering (NEM), SELCO is a use-it-yourself model: what you generate is what you use.
It’s regulated by Suruhanjaya Tenaga (Energy Commission) and supported by TNB, and is now the main solar scheme available for new applicants in Malaysia.
SELCO Guidelines (as of 2025)?
- No export of excess energy to the TNB grid.
- Use 100% of your solar energy for your own building.
- No quota limitations for non-domestic users.
- Flexible solar installations — rooftops, ground-mounted, and even floating solar systems allowed.
- Agriculture sector included (e.g. farms, fishponds, plantations).
- Mandatory requirement of Battery Energy Storage System (BESS) for solar systems above 72kWp, effective 1st January 2026.
- More streamlined application process for both homes and businesses.
SELCO for Residential Users
*If you're a business, factory, or commercial site — scroll down to the section on non-domestic users.
Who Can Apply?
If you’re a homeowner of a landed home with a TNB domestic account, SELCO allows you to install solar panels and use solar energy directly in your home — during the day, when the sun is shining. You can install a rooftop solar system sized according to your home’s electrical connection.
Capacity Limits:
Not sure where you fall? Check the Voltage Supply in your TNB bill or ask your solar provider, like Sunview!
Solar providers will inspect your electrical setup during site visits and determine:
- Your phase type
- Your maximum system size
- Whether your system can be upgraded (e.g. from single to three-phase).
How Solar Under the SELCO Programme Works:
- Solar panels generate electricity during the day.
- Your home uses that solar energy immediately — to power appliances, lighting, air conditioning.
- When solar is insufficient (e.g. at night), electricity is drawn from the TNB grid as usual.
- No excess solar energy export to TNB, it’s for your own use only. So, your system should be sized based on what you typically use during the day —not more.
Why SELCO makes sense for homeowners:
- It significantly lowers your monthly electricity bills — because you draw less from TNB.
- Works great for homes with daytime activity (if you work from home, have kids, have the AC turned on, and more!).
How Sunview Helps Homeowners with SELCO
At Sunview, we make solar simple for Malaysian homeowners:
- We help you size your system for maximum self-consumption savings.
- We handle all related work processes authorities work process for approval. We handle all related work processes and liaise with the relevant authorities for approval.
- We provide full installation, after-sales service, and performance monitoring.
- You get premium-quality panels and inverters with warranties.
- Financing options are available.
We don’t just install — we guide you every step of the way. All you need to do is use the clean energy you generate comfortably.
SELCO for Commercial, Industrial & Agricultural Users
Who Can Apply?
Commercial and industrial businesses qualify. Running a factory, retail shop, warehouse, or farm? You can install as much solar as your site and energy demand allows. There’s no official size cap — you can install a small system or go big, depending on your needs.
How It Works:
- Your solar system generates electricity during the day — when your business is most active.
- That solar energy is used immediately to power your operations: machinery, lighting, cooling, equipment, etc.
- When solar isn’t enough (like on cloudy days or at night), your site continues to draw from the TNB grid.
- No excess energy is exported to the grid — it’s 100% for your own use, so your system should match your typical daytime usage, not exceed it.
- You rely less on the grid, reducing your electricity bill and operating expenses (OPEX).
- With Battery Energy Storage Systems (BESS), you can store excess solar energy and use it when solar production is low.
How SELCO Fits into the New TNB Tariff Restructure (2025)
Since 1 July 2025, TNB has introduced a new billing system for businesses and homeowners. Your bill now includes:
TNB Charge Type
Solar helps you lower all of these charges.
Why Businesses Choose Solar under SELCO:
- Lower electricity bills = lower operating expenses (OPEX).
- Reduce exposure to future tariff hikes.
- Improve ESG credentials and sustainability reporting.
- Potential to pair with Battery Energy Storage Systems (BESS) for peak-hour optimization (especially 2pm–10pm).
How Sunview Supports Businesses with SELCO
From factories to retail outlets, Sunview has delivered solar for Malaysia’s commercial and industrial sites for more than a decade.
- System design and feasibility studies tailored to your operations.
- Full EPCC service (Engineering, Procurement, Construction, Commissioning).
- Handles all government required applications.
- Ensuring compliance with TNB and Suruhanjaya Tenaga requirements.
- BESS integration for large systems.
- Cost-saving analysis.
- Long-term operations and maintenance.
- ESG reporting.
We don’t just install panels. We build solar strategies that work — tailored to your goals, site, and budget.
Should You Choose SELCO?
SELCO is the future of solar in Malaysia.
It’s simple, direct, and gives you full control over your own energy usage. Whether you’re a homeowner looking to reduce your electricity bill, or a business aiming to cut OPEX and meet ESG goals — self-consumption is a smart step forward.
And with Malaysia pushing toward 70% renewable energy by 2050, making the shift now gives you a head start — especially with rising electricity costs and growing pressure for sustainability.
* What Happens to Existing NEM Users?
If you're already under NEM 1.0 / 2.0 / 3.0:
- You will continue receiving credits and offsets for up to 10 years from the installation date.
- After your NEM benefits expire, you can transition to:
- SELCO (self-consumption)
- CREAM (community Renewable Energy sharing)
Need Help Getting Started?
If you’re not sure how SELCO fits your home or business, talk to our solar experts here. Sunview Group offers free consultations.
Disclaimer: For information use only. Seek professional advice before proceeding.
