How to Calculate Your TNB Bill in 2026: A Simple Electricity Tariff Guide

Many Malaysians pay their TNB bill every month without knowing how TNB calculates the final amount. The bill is not based on one fixed electricity rate. Residential users pay different rates based on how much electricity they consume.

This is called a progressive block tariff. The rate rises as your monthly electricity use increases. We’ll explain each part of a TNB bill in simple terms.

Moreover, it covers meter readings, energy charges, ICPT, KWTBB and other possible charges. It also shows how solar panels can lower the amount of electricity you buy from TNB.

Understanding Your TNB Bill

Your monthly TNB bill normally contains the following information:

• Meter Reading (kWh): The amount of electricity used during the billing period. A normal billing cycle is around 28–31 days.
• Energy Charge: The cost of the electricity you used. TNB calculates it according to the applicable tariff rate.
• ICPT Surcharge or Rebate: An adjustment linked to changes in electricity generation and fuel costs.
• KWTBB Charge (1.6%): A contribution to Malaysia’s Renewable Energy Fund.
• Service Tax (8%): A government tax applied when the account meets the relevant conditions.
• Total Amount: The final amount you must pay after all charges, rebates and taxes are included.

Tariff A — Residential Properties

Tariff A applies to homes and other residential premises in Malaysia. It follows a progressive pricing system. The first 200 kWh receives the lowest rate. The next group of units receives a higher rate. The price continues to rise as your monthly consumption enters the higher blocks.

Residential Tariff A Schedule — 2026

The minimum monthly charge is RM3.00.

Source: Tenaga Nasional Berhad tariff schedule stated as applicable for 2024–2026.

Example Calculation for 800 kWh

Suppose your home consumes 800 kWh in one billing month. TNB does not charge all 800 kWh at the same rate. The units are divided between four tariff blocks.

Block 1: 200 kWh × RM0.218

= RM43.60

Block 2: 100 kWh × RM0.334

= RM33.40

Block 3: 300 kWh × RM0.516

= RM154.80

Block 4: 200 kWh × RM0.546

= RM109.20

Total Energy Charge: RM341.00

ICPT surcharge: 200 kWh × RM0.037

= RM7.40

KWTBB charge: 1.6% × RM341.00

= RM5.46

Estimated Total: RM353.86

In this example, the 3.70 sen/kWh ICPT surcharge applies only to the 200 kWh used above 600 kWh. This calculation assumes the stated ICPT arrangement for January–June 2026.

The difference between the tariff blocks is easy to see. The first 200 kWh costs RM43.60. The final 200 kWh costs RM109.20. That is about two and a half times more.

For this reason, homes with high electricity use can often gain more value from solar. Reducing TNB consumption may remove units charged under the most expensive blocks.

Tariff B — Commercial Properties

Tariff B generally applies to commercial premises. Examples include offices, retail shops, hotels and restaurants.

Commercial electricity bills may include two important parts:

• Maximum Demand Charge: Around RM30.30 for every kW of recorded maximum demand during the month.
• Energy Charge: Usually around 38.00–50.90 sen/kWh, depending on the supply and voltage category.

Maximum demand, often called MD, can have a large effect on a commercial bill. It measures the highest amount of power used at one time during the billing period.

For example, an office may switch on several air conditioners, machines and other electrical systems at the same time. This can create a high demand peak. That short peak may increase the maximum demand charge for the entire month.

A daytime solar system may help lower the amount of grid power required during working hours. However, the actual reduction depends on the building’s demand pattern and the timing of the monthly MD peak.

Tariff C — Industrial Properties

Tariff C is commonly associated with industrial sites and factories. Its structure is similar to commercial tariffs, but the rates and voltage categories are different.

Typical components may include:

• Maximum Demand Charge: Around RM25.80–RM45.10 per kW, depending on the voltage level and tariff category.
• Energy Charge: Around 28.80–36.50 sen/kWh.

Factories that operate mainly during daylight hours are often suitable for solar power. Their electricity demand usually overlaps with the hours when solar panels produce energy.

A factory operating from 8 a.m. to 6 p.m. can use much of its solar generation directly. This reduces the amount of electricity purchased from the grid during the day.

For some Malaysian factories, a solar installation of 100 kWp or more may reduce electricity costs by about 20%–40%. The actual result depends on operating hours, roof space, tariff category and daily consumption.

What Does ICPT Mean?

ICPT stands for Imbalance Cost Pass-Through. It is a system used to adjust electricity charges when the cost of producing electricity changes. Power generation costs can rise or fall because of changes in coal, natural gas and other fuel prices.

Currency movements and generation expenses may also affect the cost. ICPT allows these changes to be passed to consumers as either a surcharge or a rebate.

Under the stated arrangement for January–June 2026:

• Residential users consuming no more than 600 kWh: No ICPT surcharge.
• Residential users consuming more than 600 kWh: A surcharge of 3.70 sen/kWh applies to the units above 600 kWh.
• Commercial and industrial users: The applicable adjustment depends on the tariff category.

Reducing monthly grid consumption from 800 kWh to 600 kWh or less may create two types of savings.

• First, fewer units fall under the expensive tariff blocks.
• Second, the household may avoid the stated ICPT surcharge.

A correctly sized solar system can help reduce the amount of electricity recorded on the TNB bill.

What Is the KWTBB Charge?

KWTBB refers to the Renewable Energy Fund contribution. It is generally calculated at 1.6% of the applicable electricity charges. The collected money supports Malaysia’s renewable energy programmes.

These may include Feed-in Tariff projects involving solar power, biomass, biogas and small hydropower. The KWTBB amount is linked to your electricity charge. Therefore, when your charge falls, the KWTBB amount may also become lower.

Installing solar can reduce the amount of grid electricity used. This may lower both the main energy charge and the related KWTBB contribution.

How Solar Panels Lower a TNB Bill

Solar panels produce electricity for your property during the day. When your home or business uses that electricity immediately, it buys less electricity from TNB.

The basic idea is simple:

Every unit of solar electricity used on-site is one less unit that must be purchased from the grid.

The “Cut from the Top” Effect

This point is especially important for residential users under a progressive tariff.

Suppose your home normally uses 800 kWh each month. If your solar system supplies 400 kWh for your own use, your billed TNB consumption may fall to about 400 kWh.

The reduction effectively removes the units that would have entered the higher tariff blocks. In this example, the avoided units mainly come from Blocks 3 and 4, where the stated rates are 51.60 and 54.60 sen/kWh.

It does not simply remove the lowest-priced units in Block 1. This is why one unit of solar energy may be worth more to a high-consumption household than to a low-consumption household.

Example: 800 kWh Use with 400 kWh Supplied by Solar

Without solar at 800 kWh:

RM353.86

With solar and 400 kWh purchased from TNB:

RM120.20

Estimated Monthly Saving: RM233.66, or about 66%

This is a simplified example. Real savings will depend on when electricity is used, how much solar power is generated and how much energy is exported to the grid.

Export Credits Under NEM

A solar system may sometimes generate more electricity than the property is using at that moment. When this happens, the unused electricity can be exported to the TNB grid under the applicable programme and rules.

The exported electricity may receive a bill credit. The value of that credit depends on the current scheme, tariff and approval terms. Self-consumption normally gives the strongest direct value because the solar electricity immediately replaces electricity that would otherwise be bought from TNB.

Exported energy may receive a different credit value. Always check the latest NEM or replacement programme rules before estimating export income, credit rates or the period for carrying credits forward.

Simple Ways to Save More with Solar

1. Use Solar Energy Before Exporting It: Run high-use appliances during the day whenever possible. Washing machines, water heaters and air conditioners can use electricity while the panels are generating power.
2. Set Appliance Timers: Use timers or smart plugs to operate suitable appliances between about 10 a.m. and 4 p.m. This can increase direct solar use.
3. Try to Stay Below Expensive Tariff Levels: If possible, reduce grid consumption to 600 kWh or less. This may remove higher-block charges and help you avoid the stated ICPT surcharge.
4. Choose the Correct System Capacity: An oversized system can export too much electricity. An undersized system may not deliver the expected savings. The right size should match your electricity bill, daytime consumption and available roof area.

Use our solar savings calculator to estimate a suitable system based on your monthly TNB bill.

What Should You Do Next?

Understanding your electricity bill is the first step. The next step is to estimate how much of your TNB consumption solar could replace.

Try our Free Solar Calculator:

• Enter your monthly bill to receive an estimated system size, potential monthly savings and expected return period.
• The calculation takes only a few minutes and gives you a useful starting point before requesting a detailed site assessment.

A properly designed solar system may reduce a TNB bill by around 40%–90%. The final saving depends on the system size, roof conditions, daytime electricity use, tariff rules and export-credit arrangement.

Solar also reduces your exposure to future electricity price increases. With quality equipment and proper installation, the system can continue producing energy for many years.