GET vs mREC for Renewable Energy in Malaysia Without Panels

TL;DR:

• Malaysian businesses can make auditable clean energy claims without installing panels — GET and unbundled mRECs are both recognised under GHG Protocol Scope 2, CDP, and RE100.
• GET is a TNB-administered subscription with restructured rates now ranging from 3 to 5 sen/kWh; unbundled mRECs are procured independently through the i-REC registry and retired in your organisation's name.
• With Malaysia's carbon tax phasing in and Bursa sustainability disclosure obligations expanding, 2026 is a material decision point — not a deferral point.
• The 2 instruments are not mutually exclusive; many organisations use both, depending on consumption profile, site structure, and reporting framework.
• Confirm certificate retirement, TNB account eligibility, and framework alignment before committing to either route.

Most businesses assume renewable energy in Malaysia requires capital commitment to physical infrastructure. It does not. Green Electricity Tariff (GET) and unbundled Malaysian Renewable Energy Certificates (mRECs) — both administered under TNB's Renewable Energy Certificate programme — allow companies to make auditable clean energy claims satisfying CDP, GHG Protocol Scope 2, and RE100 requirements, without a single panel on the roof.

With GET rates restructured and the Imbalance Cost Pass-Through Adjustment Factor Allowance (AFA) turning positive in May 2026, the cost and compliance equation has shifted. That makes 2026 the right moment to evaluate which instrument fits your business.

This guide explains both options and provides a framework for choosing between them.

ESG Compliance in Malaysia Has Made 2026 a Decision Point

Malaysia's carbon tax is phasing in, Bursa sustainability disclosure requirements are expanding, and global supply chain buyers — particularly in export manufacturing and financial services — are demanding verifiable clean energy use as a baseline condition, not a differentiator.

For businesses in leasehold buildings, multi-tenanted properties, or those with capital constraints, rooftop solar is not always a viable near-term option. GET and mRECs exist to bridge this gap, giving organisations a credible compliance pathway without infrastructure commitment.

The Sustainable Energy Development Authority (SEDA) administers Malaysia's renewable energy certification frameworks, and the instruments available today are designed to meet the standards that external verifiers, Bursa-listed sustainability reports, and international buyers scrutinise.

If your sustainability or finance team is preparing ESG disclosures this year, the question is no longer whether to act — it is which instrument produces the most defensible claim for your specific situation.

How Does GET Work, and What Do the New Rates Mean for Your ESG Budget?

GET is a Tenaga Nasional Berhad (TNB)-administered subscription programme. Businesses pay a green premium on top of their standard electricity tariff in exchange for mRECs certified annually under the internationally recognised I-REC Standard.

The restructured GET Greenpath rates represent a significant reduction from previous category-based premiums of up to 20 sen/kWh:

With the AFA turning positive at +1.38 sen/kWh in May 2026, the net cost of remaining on standard grid supply is rising — which makes GET comparatively more attractive for volume users.

One important caveat: the former ICPT exemption, which previously offset a meaningful portion of GET's cost for medium and high-voltage users, no longer applies under the restructured tariff framework. Calculate the effective saving against your specific consumption tier before committing.

How Unbundled mRECs Work, and When Do They Make More Sense?

An unbundled mREC is purchased independently of your electricity supply. You procure certificates from an accredited renewable generator through the i-REC registry, retire them in your organisation's name, and use them to support market-based Scope 2 claims — with no change to your TNB billing arrangement.

This route suits:

• Tenants in multi-occupancy buildings who cannot access GET directly
• Businesses operating across multiple sites that need to attribute certificates to specific facilities
• Export-oriented manufacturers whose international buyers require certificates recognised across global reporting frameworks.

The procurement process is relatively straightforward once you identify an accredited issuer. Confirm that the certificates align with your chosen reporting framework — whether GHG Protocol, CDP, RE100, or Science-Based Targets — before committing. Selecting a certificate type without confirming framework eligibility is a compliance risk that is easy to avoid.

Evaluating which clean energy certificate route fits your operations? Speak with a qualified energy adviser to map your reporting obligations before selecting a product.

GET vs mREC: Which Instrument Fits Your Business? 

The right instrument depends on how your facilities are metered, how your reporting obligations are structured, and how much procurement flexibility your organisation needs. The table below maps the key decision criteria.

GET suits businesses that are direct TNB account holders, have predictable annual consumption, and want administrative simplicity. The mREC issued at year-end carries full international certification without a separate procurement process.

Unbundled mRECs are the better fit where flexibility, multi-site attribution, or sub-metered building arrangements make a fixed annual subscription impractical. They can be procured in volumes that match specific reporting periods rather than a full calendar year of consumption.

The 2 instruments are not mutually exclusive. Some organisations use GET to cover base load across directly metered facilities and supplement with unbundled mRECs for specific sites or reporting gaps. The right combination depends on your consumption profile, organisational structure, and the reporting standard you are satisfying.

3 Checks Before You Subscribe to GET or Procure mRECs 

Selecting the right certificate is only part of the decision. Before committing to either route, these 3 checks will determine whether your procurement holds up under external scrutiny.

Eligibility

Establish whether your facility qualifies for a direct GET subscription or falls under the GET Greenpath route for non-direct TNB accounts — confirm the current eligibility criteria and subscription options via TNB's official GET page before proceeding. The certificate received is equivalent in both cases, but the subscription pathway and billing integration differ — and this affects your administrative workload and timeline.

Certificate retirement and audit trail

Any certificates you procure must be retired in your organisation's name through a recognised registry such as I-REC or the Malaysian Green Attribute Tracking System (mGATS). This is the audit trail that CDP reviewers, external verifiers, and Bursa sustainability reporting frameworks will check. Unretired certificates do not constitute a valid market-based claim.

Framework alignment

GHG Protocol Scope 2 market-based methodology, RE100, and CDP each carry specific guidance on which instruments qualify. Map your framework requirements before selecting a product — not after.

Before you act:

• Confirm whether your facility is a direct TNB account holder or requires the GET Greenpath route.
• Calculate the net cost of GET against your consumption tier, accounting for the removal of the ICPT exemption.
• For multi-site businesses, map which facilities require individual certificate attribution.
• Ensure retirement is completed in your organisation's name before submitting any ESG disclosure.

Talk to Northern Solar About Renewable Energy in Malaysia That Works for Your Business

GET and mRECs resolve the immediate compliance question, but they do not reduce your underlying energy consumption or insulate your business from rising grid costs — on-site solar generation addresses both.

Northern Solar’s work with Malaysian corporates is grounded in SDG and ESG values that go beyond certificate compliance — evaluating where solar is viable, how procurement fits alongside it, and what combination produces the most cost-efficient outcome for your operational structure.

To explore how renewable energy in Malaysia can work for your business — with or without panels on the roof — contact us for a consultation.