Malaysia's recent decision to reduce the system access charge (SAC) for green electricity transmission under the Corporate Renewable Energy Supply Scheme (CRESS) has sparked renewed investor interest and is expected to drive significant growth in the country’s solar energy sector. The move, announced in September 2026, cuts the SAC by 30%, from 20 sen to 14 sen per kilowatt-hour (kWh), aiming to lower costs for corporate consumers purchasing renewable energy via the national grid operated by Tenaga Nasional Bhd (TNB).
CRESS enables corporate buyers to acquire renewable power directly from independent producers using TNB's transmission infrastructure. The latest SAC reduction is intended to improve the financial viability and bankability of solar projects, providing greater certainty for developers and purchasers alike by also requiring a minimum contract tenure of 10 years.
Market reaction was swift, with shares of major solar contractors—including Solarvest Holdings Bhd, Pekat Group Bhd, and Samaiden Group Bhd—rising to record levels. Industry analysts note that this development is timely, coinciding with growing electricity demand from Malaysia’s expanding data centre sector, which pays an effective rate close to 60 sen/kWh under ultra-high voltage tariffs.
Evan Ng Chee Yang, consulting lead at Siemens Energy Asia Pacific, highlighted that the 6 sen/kWh cut in SAC could enhance project economics by up to 10%, making solar power under CRESS more competitive with existing electricity tariffs for data centres and potentially other large users such as semiconductor manufacturers. Furthermore, the lower SAC eases concerns over future SAC escalation risks, encouraging developers and offtakers to progress with projects previously held back by cost uncertainties.
Research from Kenanga estimates that CRESS currently has 11 renewable energy developers and eight green consumers registered, representing a combined project pipeline capacity of approximately 3.15 gigawatts. Applying an estimated engineering, procurement, construction and commissioning (EPCC) cost of RM5 million per megawatt, the potential market could reach around RM16 billion. Kenanga’s analysis suggests the current SAC level could yield equity internal rates of return (IRRs) ranging from 10% to 13% for firm-output projects, assuming developer tariffs around 35 sen/kWh.
Similarly, Hong Leong Investment Bank (HLIB) Research noted that CRESS projects could offer more attractive returns compared to Malaysia’s large-scale solar (LSS) programme, with estimated IRRs between 9% and 11%. HLIB pointed to a pilot “DayOne CRESS” project touted by TNB to generate a project IRR of about 12%, exceeding typical historical returns from LSS initiatives.
The reduced SAC rate is accompanied by a commercial operation deadline of December 31, 2028, intended to accelerate negotiations and project execution. Analysts expect that deal announcements and engineering contracts for CRESS projects will gain momentum in the fourth quarter of fiscal 2026 and into early 2027. Solarvest and Samaiden are among the firms anticipated to secure their initial CRESS contracts within the coming months.
Market watchers also indicate that while CRESS represents an additional source of work for solar engineering and construction firms, it will complement rather than replace existing project pipelines linked to ongoing LSS tenders. This underscores the sustained growth trajectory for the solar sector in Malaysia as it adapts to new corporate renewable energy procurement models and evolving demand dynamics.