Pioneering a Greener Future: Introduction
Malaysia is moving fast toward a cleaner energy future. At the centre of that shift sits the Corporate Renewable Energy Supply Scheme, better known as CRESS. Launched in September 2024, this scheme lets companies buy renewable energy directly from developers through the national grid.
The Ministry of Energy Transition and Water Transformation (PETRA) introduced CRESS to open up green energy access. Through it, businesses can cut their reliance on fossil fuels and take real steps toward sustainability. Moreover, the scheme supports Malaysia’s goal of reaching 70% renewable capacity by 2050.
Since launch, CRESS has evolved quickly. The government refined the rules in 2025 and again in December 2025, making the scheme cheaper and more flexible. So this guide walks you through how CRESS works today, what changed in 2026, and whether it fits your business.
What Is CRESS and How Does It Work?
CRESS lets corporate consumers source renewable energy directly from a renewable energy developer, known as a RED. Instead of building solar panels on your own roof, you buy clean power generated elsewhere and delivered through TNB’s grid.
This model relies on a mechanism called Third-Party Access, or TPA. TPA gives businesses the legal right to use the national grid to receive green electricity. As a result, CRESS marks a major step toward a more open, liberalised energy market in Malaysia.
Four key parties make the scheme work:
- The Renewable Energy Developer (RED) builds, owns, and operates the green energy plant, which must be at least 30MW.
- The Green Consumer is the business buying the renewable electricity.
- The Single Buyer manages dispatch scheduling and settlement.
- Tenaga Nasional Berhad (TNB) owns the grid that delivers the power.
Unlike the earlier Corporate Green Power Programme, CRESS uses a physical power purchase agreement rather than a virtual one. In other words, the actual electrons flow through the grid to your premises. Furthermore, CRESS carries no national quota, so gigawatt-scale projects can proceed without a cap.
The 2026 CRESS Updates You Need to Know
CRESS looks quite different in 2026 than it did at launch. Several important changes have made the scheme more attractive, so here’s what’s new.
Lower system access charges. The System Access Charge (SAC), sometimes called a wheeling charge, is the fee for using the grid. In August 2025, the government cut these rates. Firm supply dropped from 25 to 20 sen/kWh, while non-firm supply fell from 45 to 40 sen/kWh. Consequently, procuring green power through CRESS now costs less.
Price certainty for three years. The SAC is now fixed for the full Incentive-Based Regulation period, currently RP4 (2025 to 2027). On top of that, any future variation is capped at 15% per regulatory period. Therefore, businesses can plan long-term budgets with far more confidence.
Open to existing consumers. Previously, only new consumers or new demand qualified. Since September 2024, however, existing TNB commercial and industrial customers can participate too. This single change opened the door to thousands more businesses.
Source from multiple developers. Each Green Consumer can now buy green energy from more than one RED, up to their declared maximum demand. As a result, companies gain flexibility to mix and diversify their supply.
A streamlined, two-stage approval. The revised guidelines took effect on 29 December 2025. Now the Power System Study runs in two stages. Stage one (PSS1) begins as soon as you submit your application. If it succeeds, the Energy Commission issues a conditional verification letter. Stage two (PSS2) then follows while you finalise your contracts. Developers can also submit term sheets earlier, with executed agreements due within three months of conditional verification. Overall, this reduces upfront friction and speeds up projects.
Eligibility and Participation Requirements
you apply, check the following requirements.
For Green Consumers (businesses):
- You must be a medium voltage (MV) or high voltage (HV) commercial or industrial user.
- Both new and existing TNB customers can now join, following the 2025 update.
- You enter a physical power purchase agreement with a RED for your renewable supply.
For Renewable Energy Developers:
- The green energy plant must be at least 30MW with a direct grid connection.
- Developers pay the SAC for using the grid, unless they export surplus energy back to it. A major part of the December 2025 update was that excess energy (due to a consumer using less than expected) is no longer considered free energy to the grid system. It is now governed by the Bilateral Energy Supply Contract between the developer and the consumer, allowing for compensation mechanisms or selling to other green consumers.
- Firm-output plants need energy storage covering at least 50% of capacity to qualify for the lower rate.
On grid stability:
The Power System Study (PSS) checks that each new connection keeps the grid stable and reliable. Because this study now runs in two stages, developers get clearer milestones and faster feedback.
Benefits of CRESS for Businesses
Why should your business consider CRESS? The scheme delivers several clear advantages, especially for companies with sustainability targets.
- Meaningful sustainability gains. CRESS gives you access to genuine renewable energy, which shrinks your carbon footprint. In turn, this helps you meet ESG goals and report credible, traceable green claims.
- Stronger energy security. By sourcing from multiple developers, you reduce reliance on any single supply. Meanwhile, fixed access charges protect you from sudden cost swings.
- Long-term cost predictability. With the SAC locked for three years, you can forecast energy spending accurately. For large EHV and UHV users especially, CRESS now competes well against standard tariffs.
- No rooftop needed. Unlike on-site solar, CRESS requires no installation on your premises. Therefore, businesses with limited roof space or rented buildings can still go green.
- Compliance and reputation. CRESS helps you satisfy global sustainability standards and strengthen your corporate responsibility commitments.
CRESS vs Power Purchase Agreements (PPA)
People often confuse CRESS with a traditional PPA. While related, they differ in important ways. This comparison makes the distinction clear.
Feature | CRESS | Traditional On-Site PPA |
Energy source | Off-site plant via the national grid | On-site panels on your own roof |
Scale | Access to large, gigawatt-scale supply | Limited by your available roof space |
Intermediaries | Direct access through TPA | Often requires intermediaries |
Flexibility | Source from multiple developers | Tied to one system and site |
Best for | Businesses wanting more power than they can self-generate | Businesses with suitable roof space |
In short, a traditional PPA suits businesses with the space to host panels. CRESS, by contrast, gives you off-site access to far more renewable energy than a single roof could ever produce. Thus, the right choice depends on your premises, your demand, and your goals. If on-site generation makes more sense for your premises, explore our guide to Malaysia’s zero-CAPEX commercial solar campaigns.
Empowering Change: Conclusion
CRESS has grown into one of Malaysia’s most powerful tools for corporate green energy. With lower access charges, fixed pricing, and broader eligibility, the 2026 scheme is more accessible than ever. For businesses chasing net-zero targets, it offers a direct and credible path to renewable power.
Getting started can feel complex, but you don’t have to navigate it alone. AQ Energy helps businesses understand their options and build the right renewable energy strategy. So if you want to explore CRESS or on-site solar for your company, we’re ready to help.
To learn more, WhatsApp AQ Energy today. You can also explore our solar solutions for homes on our residential solar page. For businesses, visit our commercial and industrial solar page to get started.
Frequently Asked Questions (FAQs)
1. What is the Corporate Renewable Energy Supply Scheme (CRESS)?
CRESS is a Malaysian government initiative launched in September 2024 by PETRA. It lets corporate consumers buy renewable energy directly from developers through the national grid, using a mechanism called Third-Party Access. In effect, businesses can source green electricity without installing their own solar panels.
2. What changed for CRESS in 2026?
Several updates made CRESS cheaper and more flexible. The government lowered system access charges to 20 sen/kWh for firm supply and 40 sen/kWh for non-firm supply. It also fixed these rates for three years, opened the scheme to existing consumers, and streamlined approvals into a two-stage process from 29 December 2025.
3. Who is eligible to participate in CRESS?
CRESS is open to commercial and industrial users on medium or high voltage connections. Since the 2025 update, both new and existing TNB customers can join. On the supply side, renewable energy developers must operate a plant of at least 30MW with a direct grid connection.
4. How does CRESS differ from a traditional Power Purchase Agreement (PPA)?
A traditional on-site PPA relies on solar panels installed at your premises, so your roof space limits the size. CRESS instead delivers off-site renewable energy through the grid. As a result, you can access far more clean power and even source it from several developers at once.
5. Is CRESS worth it compared to other green energy options?
That depends on your business size and energy needs. With the 2026 rate cuts, CRESS has become more competitive, especially for large EHV and UHV users. For smaller businesses, on-site solar or other schemes may suit better. AQ Energy can help you compare the options and choose wisely.
