Thinking about installing solar panels for your home or business? If you're planning to use solar just for your own electricity needs — and not export back to the grid — then the SELCO (Self-Consumption) scheme is for you!
Let’s break down the latest 2025 SELCO Guidelines so you can understand what it means for you.
What is SELCO?
SELCO stands for Self-Consumption — it means:
- You install solar panels
- You use the solar power only within your own premises
- No selling back to TNB or exporting to the national grid
Who Can Use SELCO?
This guideline applies to:
- Homeowners
- Business owners (factories, shops, schools, farms, etc.)
- Anyone using solar just for personal or business use on-site
If your premises are already part of Net Energy Metering (NEM), SELCO is not allowed.
If your premises are already part of Net Energy Metering (NEM), SELCO is not allowed.
Types of Solar Systems Under SELCO
- Off-Grid System
o Not connected to TNB
o Best for remote or rural areas - Grid-Connected System
o Connected to TNB for backup power
o But you CANNOT export excess solar to the grid
Maximum System Sizes
For Home Users (Domestic):
- 5kW for single-phase (230V)
- 12.5kW for three-phase (400V)
For Business Users (Non-Domestic):
- No system size limit
- However, if system is over 72kWp, a battery storage system is required (from 2026 onwards)
Battery Storage Rules
If you're installing more than 72kWp (commercial):
- You need a battery that stores 1 hour of energy (e.g. 100kWp = 100kWh battery)
- Exception: If installed before 31 Dec 2025, battery is not required
Exemption: Universities installing >1MWp do not need to install battery or pay standby charges.
What You Need To Do
Before Installation:
- Inform Suruhanjaya Tenaga (ST) of your intent
- Get landlord consent (if you’re renting)
- Use licensed engineers or solar contractors for design
After Installation:
- Must be tested & commissioned by a qualified person
- Submit:
o Form G & H (certificates)
o System info to ST and TNB
Safety First!
- System must comply with Malaysian laws and safety standards
- A warning label must be installed to notify solar power exists
- For systems >72kWp, a technical connection study may be required
Charges & Fees
Starting 1 Jan 2025:
- For non-residential systems ≥1MWp, there may be additional government charges to support grid fairness and maintenance
| Category | SELCO Rules |
| Export to Grid | Not allowed |
| System Size (Home) | Max 5kW (1P), 12.5kW (3P) |
| System Size (Business) | No limit, battery required if >72kWp |
| Battery Requirement | Yes (after 31 Dec 2025, >72kWp only) |
| TNB Approval | Required before installation |
| ST Notification | Required after installation |
| Safety Compliance | Mandatory |