TNB’s Biggest Tariff Change in Years
Effective July 1, 2025, Tenaga Nasional Berhad (TNB) overhauled the residential electricity tariff structure in Peninsular Malaysia. The base tariff increased by 13.6%, from 39.95 sen/kWh to 45.4 sen/kWh.
For the average Ipoh household, this means higher monthly bills — and a stronger case for going solar.
How the New Tariff Works
The old tiered block system is gone. TNB now charges residential customers through five components:
- Energy charge: 27.03 sen/kWh (first 1,500 kWh) or 37.03 sen/kWh (above 1,500 kWh)
- Capacity charge: 4.55 sen/kWh
- Network charge: 12.85 sen/kWh
- Automatic Fuel Adjustment (AFA): Reviewed monthly (was -4.99 sen/kWh in January 2026)
- Retail charge: RM10/month (waived if usage is 600 kWh or below)
The effective rate for most homeowners is approximately RM0.44/kWh before AFA adjustments.
What This Means for Solar ROI
Higher electricity costs mean faster payback for solar panels. Every kWh your solar system generates is now worth more in avoided TNB charges.
For a typical Ipoh home spending RM400/month on electricity:
- Without solar: ~RM4,800/year to TNB
- With 5 kWp solar: ~RM800/year to TNB (saving RM4,000/year)
- Payback period: ~5 years on an RM18,000–RM25,000 system
Protections for Low-Usage Households
If your household uses 600 kWh or less per month, you’re protected from AFA surcharges and the RM10 retail charge is waived. But even at this usage level, solar can eliminate your bill entirely.
