Electricity costs keep climbing, yet many Malaysian businesses still hesitate to go solar. The reason is usually the upfront price tag. Fortunately, zero-CAPEX solar removes that barrier entirely. Instead of paying for the system yourself, a developer funds it, and you simply buy the clean power it produces. So in 2026, two models dominate this space: the Solar Power Purchase Agreement (PPA) and the Corporate Renewable Energy Supply Scheme (CRESS). This guide breaks down both, reflects the latest 2026 policy updates, and helps you decide which one fits your business.
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 Registered Photovoltaic Investor pays for everything.
In return, you provide either the space (a roof or land) or a commitment to purchase the power. Consequently, you receive electricity at a rate well below the standard TNB tariff. Better still, you start saving from day one, without touching your capital reserves. This is why zero-CAPEX has become the preferred route for cost-conscious Malaysian businesses.
What is a Solar Power Purchase Agreement (PPA)?
A Solar PPA is the traditional on-site model. Here, a solar developer designs, funds, and builds a system directly on your property, whether that is a rooftop or a car park.
Crucially, you never own the system; the developer does. Therefore, they handle all monitoring, cleaning, and maintenance for the entire contract term. In turn, you simply pay for the solar energy the system generates, at a rate typically 10% to 20% below your current TNB tariff. Contracts usually run for 15 to 25 years, after which ownership often transfers to you. Because the provider only earns when the system performs, they stay strongly motivated to keep it running well.
In Malaysia, many on-site PPAs are structured through the SARE arrangement (Supply Agreement for Renewable Energy). This is a tripartite setup between the investor, the customer, and TNB, with TNB acting as billing agent. Notably, the SARE model is endorsed by the Energy Commission (ST) and SEDA, which adds a layer of regulatory assurance.
What is the Corporate Renewable Energy Supply Scheme (CRESS)?
CRESS takes a different approach. Rather than sitting on your roof, the solar farm can be located anywhere in Peninsular Malaysia. Launched in September 2024, CRESS opened up an “open grid” model for corporate green energy.
Under CRESS, you buy renewable power from a developer elsewhere, then receive it through TNB’s existing grid via Third-Party Access (TPA). In exchange for using the grid, you pay a System Access Charge (SAC), sometimes called a wheeling charge. This makes CRESS ideal for businesses with high consumption but little roof space, such as offices, data centres, and leased premises.
The Latest 2026 CRESS Updates
CRESS has changed significantly since launch, and 2026 brings the most business-friendly version yet. Here is what is new.
- Lower access charges. The government reduced the SAC by up to 40%. Firm supply now costs 20 sen/kWh, down from 25 sen, while non-firm supply dropped to 40 sen/kWh from 45 sen.
- Three-year price certainty. The SAC is now fixed across the current regulatory period (RP4, 2025 to 2027). Moreover, future variation is capped at 15% per period, so budgeting becomes far more predictable.
- Open to existing consumers. Previously, only new grid users qualified. Since March 2025, however, existing TNB commercial and industrial customers can join too.
- Streamlined approvals. The revised CRESS Guidelines took effect on 29 December 2025. As a result, the application and grid-study process is now clearer and faster for developers and consumers alike.
Together, these changes make CRESS more affordable and accessible than ever. For a deeper breakdown, read our complete CRESS guide.
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 |
|
|
Billing | Separate Solar & TNB bills | Single consolidated bill (via TNB) |
Contract Term | 15–20 Years | 10–21 Years |
Financial Benefits of Zero-CAPEX Solar for Malaysian 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.
- A hedge against rising tariffs. TNB tariffs continue to climb under the new tariff structure. Locking in a lower solar rate protects you for years to come.
How to Choose the Right Model for Your Business
Choosing between PPA and CRESS does not have to be complicated. Instead, it usually comes down to three practical questions.
First, consider your roof. If you own a large factory or warehouse with strong roof capacity, a PPA often delivers the best value. Second, think about your space constraints. If you run an office tower, a data centre, or a rented site with no usable roof, CRESS becomes the natural choice. Third, review your consumption and voltage level. CRESS typically serves medium and high voltage users, whereas PPAs work across a wider range.
Ultimately, the smartest decision comes from running the numbers. A proper feasibility study compares both models against your actual usage, tariff, and growth plans. That way, you lock in the option that saves you the most over the full contract.
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 20 years. Let’s future-proof your business and lock in your savings today.
- Our team supports clients under PPA or CRESS campaigns. For more information, 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)
1. 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.
2. Will I still receive a bill from TNB?
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.
3. 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.
4. 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.
5. 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.
