If your company is planning a commercial or industrial (C&I) solar PV system, a Battery Energy Storage System (BESS), or a solar + storage combination mainly to reduce on-site electricity costs and improve energy resilience (i.e., own consumption), Malaysia’s Green Investment Tax Allowance (GITA) may provide a tax allowance based on your qualifying capital expenditure (capex)—subject to MGTC verification and IRBM audit.
Under the MGTC guideline, C&I solar and BESS most commonly fall under GITA Asset for Own Consumption, with tiered rates:
“Compliance note from the guideline: you must not submit any claim to IRBM before MGTC issues the verification letter. Claims are subject to IRBM audit.”
GITA stands for Green Investment Tax Allowance. In the MGTC guideline, it is part of Malaysia’s revised Green Technology Tax Incentives (Budget 2024 revision), designed to encourage investments that reduce environmental impact, conserve resources, and promote renewable energy.
For business owners and finance teams: treat it as a tax allowance mechanism linked to eligible green investment capex, with documentation and verification requirements.
The guideline groups the revised Green Technology Tax Incentives into three categories:
This guide focuses on GITA Asset for Own Consumption, which is most relevant for behind-the-meter C&I solar PV and BESS deployed for your facility’s own use.
“Submission channel note from the guideline: GITA Asset verification is submitted to MGTC. Applications for GITA Project for Business Purpose and GITE Solar Leasing should be made to MIDA.”
The MGTC guideline applies a tiering approach for GITA Asset for Own Consumption.
Under Appendix 2 (60% of GITA), the guideline includes Renewable Energy System – RE Project for own consumption, including:
For Tier 2, MGTC’s GITA Asset document’s table shows:
Under MGTC’s GITA Asset document’s Tier 1 table for GITA Asset for Own Consumption, Battery Energy Storage System (BESS) is listed as a qualifying activity under Tier 1.
For Tier 1, MGTC’s GITA Asset document’s table shows:
Incentive period: qualifying capex incurred from 1 Jan 2024 to 31 Dec 2026
MGTC’s GITA Asset document states it is applicable for applications received by MGTC from 1 January 2024 until 31 December 2026. The provided MGTC reminder image also highlights that:
GITA applications must be submitted before 31 December 2026
If you’re targeting a solar + BESS rollout, treat this as a planning constraint—especially for projects that require longer procurement, grid approvals (if applicable), and commissioning timelines.
Below is a C&I-friendly checklist based on the guideline’s eligibility criteria.
MGTC’s GITA Asset document requires the green technology asset to be used:
Practically, this aligns well with C&I deployments such as:
The guideline states the green technology asset must be:
MGTC’s GITA Asset document states the qualifying capex must be for an approved asset by MOF, verified by MGTC, and listed under the MyHIJAU Directory.
If your investment is under a company within the same group, the guideline includes conditions such as separate location/building, separate plant/machinery/equipment (not transferred from holding/related companies), and separation of employees (with exceptions for management/directors).
This is where many projects get delayed—not due to engineering, but due to timing and documentation.
MGTC’s GITA Asset document states the application must be submitted to MGTC after the asset/project has been commissioned.
For renewable energy generation projects, the guideline adds: submit after the company receives the relevant license/approval for energy generation from the respective authority.
MGTC’s GITA Asset document states:
Practical tip: Your finance team should track “capex incurred date” carefully—especially when solar PV modules, inverters, BESS containers/racks, EMS, and balance-of-system are invoiced across multiple milestones.
The guideline states companies shall not submit any claim to IRBM prior to MGTC issuing the verification letter. Claims remain subject to IRBM audit.
The guideline states unutilised allowances can be carried forward until fully absorbed.
The guideline states GITA Project and GITA Asset are mutually exclusive—the company or its related company cannot enjoy both incentives within the same incentive period.
The guideline sets GITA Asset processing fees as:
More than RM5,000,000: RM10,000
MGTC’s GITA Asset document states the application for GITA Asset for Own Consumption should be submitted in one (1) set of MGTC GITA/A Form to:
Group Chief Executive Officer
Malaysian Green Technology and Climate Change Corporation (MGTC)
No. 2 Jalan 9/10
Persiaran Usahawan Seksyen 9
43650 Bandar Baru Bangi
Selangor Darul Ehsan
(Attn.: Head of Green Incentives)
MGTC’s GITA Asset document also provides MGTC’s contact points and website: www.mgtc.gov.my.
If your solar PV system is an RE project for own consumption and meets the guideline’s requirements (including MGTC verification and relevant listings/requirements), it may fall under GITA Asset for Own Consumption (Tier 2: Renewable Energy System – Solar).
The guideline lists Battery Energy Storage System (BESS) under Tier 1 for GITA Asset for Own Consumption.
The guideline applies to applications received by MGTC from 1 January 2024 until 31 December 2026. The MGTC reminder image also highlights submission before 31 December 2026.
No. You shall not submit any claim to IRBM prior to MGTC issuing the verification letter.
This article summarizes selected points from MGTC’s GITA Asset guideline (Revision 4, dated 24/04/2024) and the provided MGTC deadline reminder image. Tax treatment and eligibility depend on your specific facts, documentation, and approvals, and any claim is subject to IRBM audit. For official requirements, always refer to MGTC and the relevant authorities.
If you’re planning commercial solar, industrial solar, BESS, or a solar + storage solution and want to align project delivery with incentive readiness, RayGoSolar supports businesses end-to-end as a Solar EPCC company—from feasibility study and system design, to engineering, procurement, construction, testing and commissioning, and optional operations & maintenance (O&M).
For solar + BESS deployments, RayGoSolar can help with sizing and performance modeling (self-consumption vs peak shaving), integration of inverter/EMS, site safety and commissioning documentation, and maintaining a clear project record (capex and commissioning evidence) to support MGTC verification readiness.
Read more about the GITA tax incentive Malaysia guidelines to understand eligibility criteria and benefits.
