The Role of Battery Storage in SELCO and ATAP: Smart Investment or Expensive Add-On?

As solar adoption continues to expand in Malaysia, two key programs stand out: SELCO (Self-Consumption) and ATAP (Solar Accelerated Transition Action Programme). Both allow consumers to generate and consume solar energy, but the role of battery energy storage systems (BESS) is becoming a critical question: Is a battery truly a smart investment, or just an expensive add-on?

Let’s break it down.
 

Why Batteries Matter in Solar Systems

A solar panel system without a battery works only when the sun is shining. At night, or during cloudy hours, you’ll rely on grid electricity. Adding a battery changes the game:

• Stores excess solar power for later use

• Reduces reliance on grid electricity

• Provides backup power during outages

• Potentially lowers electricity bills further

But batteries come at a cost, in Malaysia, a typical 10kWh battery system costs RM 11,000–12,000 (or more). The question is whether that cost pays off differently under SELCO and ATAP.
 

Battery Storage in SELCO

In SELCO, you cannot export excess energy back to the grid. This means any unused solar electricity is essentially “wasted” unless you store it.

Here’s where batteries shine:

• Maximize Solar Usage: Store surplus energy instead of letting it go unused.

• Increase Savings: Use stored energy during peak tariff hours.

• Independence: Reduce dependency on TNB’s grid electricity.

Verdict: For SELCO, a battery is almost a necessary investment to maximize returns. Without it, you risk underutilizing your solar system.
 

Battery Storage in ATAP

In ATAP, you can consume solar energy directly and also export excess electricity back to the grid. However, the export rate is not 1:1 like NEM 3.0. Instead, it’s tied to the System Marginal Price (SMP), which fluctuates and is usually lower than the retail tariff (RM 0.443/kWh).

What this means:

• With Battery: You can store excess energy for personal use, avoiding the low export rate and reducing grid reliance.

• Without Battery: You still benefit from exporting, but the return may be smaller compared to self-consumption.

• With a Small-Capacity Battery: Yes, you can still export excess energy to the grid once the battery is full. In fact, a small battery acts as a buffer: it stores some energy for your own use, and anything beyond its capacity is exported. This allows you to enjoy both benefits, partial storage and partial export.

Verdict: For ATAP, batteries are optional but strategic. Even a small-capacity battery can strike a balance: giving you backup energy while still letting you earn from exports.
 

Smart Investment or Expensive Add-On?

• In SELCO → Battery storage is almost essential if you want to unlock maximum efficiency and shorten ROI.

• In ATAP → Battery storage is optional but beneficial. Even a smaller battery size can make sense, helping you reduce dependence on grid electricity while still exporting excess energy.

Bottom Line:
If your household or business has high night-time electricity consumption, a battery can be a smart long-term investment. But if your budget is tight and your daytime usage is high, you may see decent savings without one.
 

Final Thoughts

Battery storage in solar isn’t a one-size-fits-all solution. For SELCO, it’s a practical necessity. For ATAP, it’s a value-added feature that enhances savings, flexibility, and stability, even with a smaller capacity system.

As battery prices drop in the coming years, what looks like an “expensive add-on” today may soon become the standard companion for every solar installation.

At Solar Sunyield, we help homeowners and businesses design the right solar system under SELCO or ATAP, with or without battery storage, tailored to your energy needs and budget. Whether you want to maximize self-consumption or balance export earnings with storage, our team ensures you get the best ROI and long-term savings.

Take control of your energy today with Solar Sunyield — smarter, cleaner, and more profitable solar solutions for your future.