SELCO Scheme

☀️ What is SELCO (Self-Consumption)?

SELCO stands for Self-Consumption Solar PV System, also called the Self-Consumption Scheme under SEDA Malaysia (Sustainable Energy Development Authority) and Suruhanjaya Tenaga (Energy Commission).

It allows consumers to generate their own solar electricity using on-site solar PV systems and consume it directly — without exporting the excess energy to the grid.

⚙️ How SELCO Works

• The solar PV system installed under SELCO is connected to the user’s internal electrical network, not to export power to Tenaga Nasional Berhad (TNB)’s grid.

• Any energy generated by solar is used instantly by your building’s electrical loads.

• If your solar generation is less than your consumption, the grid supplies the rest.

• If your solar generation is more than your consumption, the extra energy is wasted (or curtailed) since exporting to TNB is not allowed under SELCO.

In short:

You produce your own electricity and use it for yourself  "no selling, no exporting, just saving on your TNB bill"

🏢 Who Uses SELCO

The SELCO scheme is designed for:

• Commercial and Industrial (C&I) users such as factories, warehouses, and retail buildings

• Government and institutional buildings

• Residential properties (though less common for high capacity systems)

💰 Benefits of SELCO

✅ Save electricity cost – Reduce grid energy usage by consuming your own solar power
✅ Simpler application – Fewer regulatory processes than Net Energy Metering (NEM)
✅ Energy independence – Less reliance on grid electricity
✅ Supports green initiatives – Lower carbon footprint