Key Takeaways
Not every business can put solar panels on its own roof, whether due to limited space, high electricity demand, or simply not owning the building. CRESS offers another way to use renewable electricity: buying it from someone else’s solar or renewable project and having it delivered through the same power lines that already reach your premises.
This guide walks through how CRESS works, who is involved, what it costs, and how to apply, in plain terms.
CRESS, launched in September 2024, allows larger commercial and industrial electricity users to buy renewable electricity directly from a renewable energy developer. The electricity is delivered through Tenaga Nasional Berhad’s (TNB) existing grid, under an arrangement sometimes called “third-party access,” which simply means a business can use the grid to receive power from a supplier other than TNB itself.
In practice, the actual electrons flowing into your building are the same as always; what CRESS changes is who you are contractually buying that electricity from, and how the renewable generation is tracked and credited to you.
A CRESS deal involves four parties, each with a clear role:
On the buying side, CRESS is generally open to medium and high voltage commercial and industrial electricity users, meaning larger consumers rather than small businesses on standard household-type tariffs, whether they are new or existing TNB customers.
On the supply side, a developer’s renewable plant generally needs at least 30MW of capacity with a direct grid connection, and if the plant is meant to supply power on a constant, firm basis, it generally needs battery storage covering a meaningful share of its output to keep supply steady.
The main cost under CRESS is the System Access Charge (SAC), essentially a fee for using the grid to deliver the electricity. At launch in 2024, this was reported at around 25 sen per kWh for firm supply and 45 sen per kWh for non-firm supply. Following a guideline revision at the end of 2025, more recent reporting has cited a lower rate of around 20 sen and 40 sen respectively. The charge is generally reviewed every three years, with any increase capped at 15% per review.
In September 2026, industry reports suggested a further cut, potentially to around 15 sen for battery-backed solar projects, was being discussed following an energy industry conference, though this had not been formally confirmed at the time of writing.
Because this rate has changed more than once, businesses should confirm the current figure directly with the Energy Commission or Single Buyer before budgeting a CRESS agreement.
The buyer and developer sign a contract called a Bilateral Energy Supply Contract (BESC). Since the 2025 guideline update, this contract must now be reviewed and checked by the Single Buyer before it is signed, to make sure it follows the scheme’s rules.
The rules on leftover, unsold electricity have also become more flexible: previously, any extra power a developer generated beyond what it sold was simply absorbed into the grid for no payment, but developers can now negotiate to be paid for it, sell it to other buyers, or keep the associated “green” credentials for themselves.
Applying for CRESS generally involves a two-part technical check called a Power System Study. The first part starts as soon as an application is submitted, and if it passes, the developer receives a conditional approval. The second part happens after the developer has secured its land and finalised the BESC contract, with full approval granted once that is done.
Developers can submit draft versions of their land and supply agreements early on, but generally need to finalise the signed versions within three months of getting conditional approval.
A buyer is also generally allowed to source renewable electricity from more than one developer at the same time, rather than being tied to a single supplier.
More international buyers now expect their suppliers to show real evidence of sustainability, not just a general commitment. For Malaysian exporters, being able to point to verified renewable electricity purchases under CRESS can help with reporting emissions from purchased electricity (often called Scope 2 emissions) and with passing sustainability audits from overseas customers, ahead of developments like the EU’s carbon border rules and Malaysia’s own planned carbon tax.
For a business that cannot fit enough solar on its own roof to cover its electricity use, CRESS offers a way to build a genuine, documented renewable energy track record alongside whatever on-site solar it already has.
No. CRESS delivers renewable electricity to you through the existing grid from someone else’s plant, so no installation on your own property is needed.
On-site solar generates power at your own premises for your own direct use. CRESS means buying renewable electricity generated elsewhere and delivered through the grid. A business can do both at the same time.
CRESS is generally intended for medium and high voltage commercial and industrial electricity users, which usually means larger businesses rather than small shops or offices on standard tariffs.
It has changed before and appears to still be under discussion, so while the rate is generally locked for three-year periods once set, businesses should confirm the current rate before finalising any agreement.
For a business with suitable roof space and the right electricity usage pattern, on-site solar is usually still the more direct way to cut electricity costs and show a visible sustainability effort. CRESS works well alongside this, or as an alternative, for businesses that need more renewable electricity than their own roof can provide, or that cannot install a system on-site at all.
Ray Go Solar designs commercial and industrial solar systems for businesses weighing up their renewable energy options, and its battery energy storage solutions can support either an on-site system or a broader renewable energy strategy that includes schemes like CRESS.
