Zero-CAPEX Solar for Businesses
“Zero-CAPEX” means zero capital expenditure. Instead of buying solar panels, inverters, and mounting hardware upfront (which can cost hundreds of thousands of Ringgit), a third-party investor or developer pays for everything.
You simply provide the space (roof or land) or a commitment to purchase power, and in return, you get electricity at a rate significantly lower than the standard TNB tariff.
What is a Solar Power Purchase Agreement (PPA)?
A Solar PPA is the traditional on-site model. A solar developer builds a system on your property (rooftop or car park).
- How it works: You don’t own the system; the developer does. They maintain and monitor it for the duration of the contract (Up to a maximum of 21 years).
- The Benefit: You only pay for the solar energy that was generated by the solar PV system owned by the solar developer.
What is the Corporate Renewable Energy Supply Scheme (CRESS)?
Launched to liberalize the energy market, CRESS is an “Open Grid” model. Unlike a PPA, the solar farm doesn’t have to be on your roof.
- How it works: You buy renewable energy from a developer located elsewhere in Malaysia. That energy is delivered to you through the existing TNB grid infrastructure via Third-Party Access (TPA).
- System Access Charge (SAC): Under CRESS, you pay a “wheeling charge” to use the grid (currently set at RM 0.20/kWh for firm power supply and RM 0.40/kWh for non-firm power supply, referring to the latest update here).
Comparison between Solar PPA vs. CRESS
There has always been public confusion between Solar PPA vs CRESS due to their similarities. Here’s a comparison table highlighting their key differences:
Feature | Power Purchase Agreement (PPA) | Corporate Renewable Energy Supply Scheme (CRESS) |
| System Location | Your roof or premises | External solar farm (Off-site) |
| Installation Space | Requires significant roof space | None required |
| Delivery Method | Direct connection | Delivered via TNB Grid |
| Ideal For | Factories & Warehouses | Offices, Data Centres & Leased Sites |
| Voltage usage level |
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| Billing | Separate Solar & TNB bills | Single consolidated bill (via TNB) |
| Contract Term | More than 21 Years | More than 21 Years |
Financial Benefits for Businesses
Why are Malaysian business leaders pushing for Zero-CAPEX models in 2026?
- Immediate Cash Flow: You start saving from the first month. The money saved on the TNB bill is immediately higher than the PPA/CRESS payment.
- Off-Balance Sheet: Since you don’t own the asset, it doesn’t appear as a debt or a heavy asset on your balance sheet, preserving your borrowing power for core business expansion.
- Maintenance-Free: The developer is responsible for the performance of the system. If it doesn’t generate power, they don’t get paid—ensuring they keep the system in top shape.
Make the Right Choice for Your Solar Investment
Choosing between PPA and CRESS doesn’t have to be a headache. Whether you have a massive factory roof or a high-energy office with no space for panels, there’s a zero-upfront-cost solution waiting for you. Our team at AQ Energy specializes in crunching the numbers to see which model actually saves you more money over the next 21 years. Let’s future-proof your business and lock in your savings today.
For more information on solar systems, WhatsApp AQ Energy to speak with our experts.
Interested in going solar at home? Visit our Solar Panel for Home page.
Looking for commercial or industrial solutions? Check out our Solar Panel for Work page to get started.
Frequently Asked Questions (FAQs)
A. What is the main difference between PPA and CRESS?
The main difference is location. A PPA requires you to have a roof or land to host the panels. CRESS allows you to buy solar power from a remote solar farm through the national grid, making it perfect for businesses with intensive high electricity consumption such as commercial shopping malls, data centres or even large scale manufacturing factories.
B. What happens to my excess energy credits at the end of the month?
Yes. Under a PPA, you will get two bills: one from TNB (for non-solar generating hours) and one from the solar provider. Under CRESS, you usually receive a single consolidated bill from TNB that includes your renewable energy charges (including renewable energy certificates) and the System Access Charge.
C. Who is responsible if the solar panels break?
In both Zero-CAPEX models, the Renewable Energy Developer is responsible. Since they only make money when the system produces electricity, they handle all maintenance, cleaning, and repairs at no cost to you.
D. Can I switch from a PPA to CRESS later?
Generally, no. These are long-term contracts (15–20 years). It is vital to perform a technical and financial feasibility study before signing to ensure you choose the model that fits your 10-year growth plan.
E. Is there a minimum electricity bill required to qualify?
Most Zero-CAPEX providers look for businesses with a monthly TNB bill of at least RM10,000 to RM20,000. If your bill is lower, you might still qualify for a “Solar Leasing” model or a smaller PPA, but CRESS is typically reserved for Medium Voltage (MV) and High Voltage (HV) consumers.
Still unsure which solar system fit your needs, don’t be afraid to reach to our team of solar professionals here.
