TNB’s new tariff starts 1 July 2025: Here’s why it’s the right time to explore solar

Starting 1 July 2025, Tenaga Nasional Berhad (TNB) will introduce a new electricity tariff structure for domestic users in Peninsular Malaysia, and it could mean higher bills for some households, especially those with high consumption or usage during peak hours.

The new structure is part of TNB’s move toward a more transparent, cost-reflective system. For consumers, this means clearer billing, monthly cost variations due to fuel prices, and the option to save more by shifting usage to off-peak periods.

What’s changing?

The updated tariff introduces a breakdown of four components: Energy, Capacity, Network, and Retail. This replaces the older 5-tier system and is designed to show consumers exactly what they’re paying for.

Here’s what the new domestic tariff schedule looks like:

Source: myTNB Portal

In addition to this, your monthly bill will now include an Automatic Fuel Cost Adjustment (AFA) — replacing the previous Imbalance Cost Pass-Through (ICPT). Unlike the old system which adjusted every six months, the AFA will now be reviewed monthly, making your bill more sensitive to global fuel and forex trends.

A new way to save: Time-of-Use (ToU)

Another key feature of the new tariff is the Time-of-Use (ToU) option. Available to residential customers with smart or CT meters, this plan lets you enjoy cheaper rates during off-peak hours, encouraging more efficient energy usage.

Source: myTNB Portal

ToU can benefit those who can shift heavy electricity use (e.g. air-conditioning, EV charging, laundry) to off-peak hours or weekends.

Why it’s a good time for Malaysians to turn to solar

With the new tariff structure — especially the AFA and ToU — solar power is becoming an even more attractive option for homeowners looking to manage long-term costs.

Here’s why:

Protection from fluctuating rates – Solar lets you generate your own electricity, reducing dependency on grid power and unpredictable fuel prices.
Shields against rising costs – Solar reduces your reliance on grid electricity, protecting you from the volatility of monthly fuel adjustments.
Stable long-term savings – Once installed, solar systems provide a reliable and predictable energy source with minimal operating costs.