Green Electricity Tariff 2026: The AFA Hedge Math

TNB's Automatic Fuel Adjustment (AFA) for July 2026 is +3.59 sen/kWh, the third positive month in a row. Suruhanjaya Tenaga's base case projects +8.04 to +8.94 sen/kWh for August to October. That changes what the green electricity tariff (GET) is for.

Until this year, GET was mostly an ESG purchase: pay a premium, receive mRECs. Now it is also a fixed-price hedge, because GET-covered kWh are exempt from the AFA surcharge. At the 3-year rate of 3 sen/kWh, the hedge currently costs less than the exposure.

The short answer: a 3-year GET block already pays for itself

At July's +3.59 sen AFA, a 3-year GET subscription at 3 sen/kWh nets a 0.59 sen/kWh saving on every covered unit. If ST's August to October base case of [+8.04 to +8.94 sen/kWh](https://www.singlebuyer.com.my/Generation-Info-Tariff/automatic-fuel-adjustment-(afa)) comes true, the saving grows to 5.04 to 5.94 sen/kWh. GET units are also exempt from the 1.6% KWTBB levy.

Two catches. The contract locks you in for one to three years with no mid-term reduction. And the exemption cuts both ways: when AFA runs negative, as it did from January to April 2026, GET-covered units give up the rebate. The rest of this article is the math and the fine print.

How did AFA swing from -4.99 to +3.59 sen/kWh in six months?

The 2026 track so far: January -4.99, February -2.77, March -2.15, April -0.47, May +1.38, June +2.59, July +3.59 sen/kWh. That is an 8.58 sen/kWh swing in six months.

July's surcharge is actually buffered. The real unsubsidised AFA is 5.55 sen/kWh (RM583 million in extra fuel cost). The Kumpulan Wang Industri Elektrik absorbed 35% of it, worth 1.96 sen/kWh, leaving consumers with 3.59 sen. The driver is fuel prices above the RP4 baseline: coal averaged USD122.37/MT against the USD97/MT baseline, and Tier 2 gas ran above its RM46/mmBtu reference.

Treat the August to October figure as a projection, not a set rate. KWIE buffering may again reduce what is actually charged. If the mechanism itself is new to you, start with our AFA explainer.

What does the green electricity tariff exemption actually cover?

TNB states that GET subscribers "retain their exemption for the actual green energy units used" under the AFA mechanism, effective 1 July 2025 onwards. In practice: kWh covered by your GET blocks skip the monthly AFA line, positive or negative, and skip the KWTBB levy.

Read the legal basis carefully. Clause 10.2 of ST's GET Guidelines (GP/ST/No.38/2023, revised 14 July 2025) says the Government "may exempt" fuel cost pass-through "within any period that may be determined by the Government". The exemption is discretionary, not permanent. It is currently in force, subject to government review, and we would not build a 3-year business case that collapses if it lapses.

The exemption also removes rebates. In January 2026, at -4.99 sen, every GET-covered kWh gave up nearly 5 sen of rebate while still paying the premium. GET is a fixed price, not a discount. For the scheme's background and how it compares with CRESS, see our CRESS vs GET comparison; we won't repeat the basics here.

What are the 2026 GET rates, quota and application steps?

Since 1 July 2025 the premium is a single ladder for all customer categories, set by subscription length: 5 sen/kWh for 1 year, 4 sen for 2 years, 3 sen for 3 years. That is a cut of up to about 80% from the old 10 and 20 sen rates. Non-residential customers subscribe in 1,000 kWh blocks, up to 130% of average monthly consumption as determined by TNB.

Applications go through the myTNB portal and are approved first-come-first-served by submission timestamp, subject to quota. TNB verifies within 5 working days, then you execute a GET Contract (stamp duty on you). Steps and screenshots are in paultan.org's GET subscription walkthrough.

The annual quota is roughly 6,600 GWh, published as a 550,000,000 kWh monthly opening figure. We could not verify the remaining quota at the time of writing. Treat any application as subject to remaining quota, and check tnb.com.my/get or mgats.com.my before committing.

The break-even math, in ringgit

Take a medium-voltage facility using 300,000 kWh/month, subscribing 300 blocks (300,000 kWh) on a 3-year GET.

Premium: 300,000 kWh × 3 sen = RM9,000/month, fixed for three years.

Scenario 1, July 2026 actual (+3.59 sen). AFA avoided: RM10,770. Net saving: RM1,770/month.

Scenario 2, ST's August to October base case (+8.04 to +8.94 sen). AFA avoided: RM24,120 to RM26,820. Net saving: RM15,120 to RM17,820/month.

Scenario 3, a January-style month (-4.99 sen). Rebate given up: RM14,970. Add the RM9,000 premium and the facility is RM23,970/month worse off than an unhedged neighbour that month.

One RP4 note: GET only touches the energy line. Capacity and Network charges, RM89.27/kW plus RM97.06/kW for MV general commercial, are unaffected. If demand charges dominate your bill, fix those first; see how RP4 demand charges work.

Size the block from interval data, not gut feel

The billing mechanics reward honest sizing. The premium is charged on the lower of subscribed versus consumed kWh (clauses 9.4 and 4.3(d)), so under-consuming a block wastes nothing directly. But TNB reserves the right to review a subscription where actual consumption runs below the subscribed amount (clause 7.12). Contracts auto-renew, mid-term reduction or termination is not allowed, and early exit attracts a fee; reduction at renewal needs 14 days' notice.

So the sizing question is: what monthly kWh baseline can you defend for three years? Answer it with 12 months of interval and billing data, not last month's bill. Account for production plans, tenancy changes and any efficiency projects that will cut consumption mid-contract.

This is exactly what CobiNeural's monitoring and Billing & Tariffs data is built to answer. Its Sustainability reporting also carries the mREC benefit into your Scope 2 numbers.

What do you get besides the AFA exemption?

Every GET kWh comes bundled with a Malaysia Renewable Energy Certificate (mREC), redeemed by TNBX and retired directly to you. Transfers happen yearly, within 45 working days after the first bill following calendar year-end. Because the mRECs are retired in your name, they cannot be resold. They support a GHG Protocol Scope 2 market-based claim for your grid electricity.

Two 2025 additions matter for landlords. A 14 July 2025 amendment lets a GET consumer direct mRECs to tenants within its premises. The tenant's consumption must be separately metered on a registered meter. And GET Greenpath, open since 1 August 2025, lets non-domestic tenants without their own TNB account obtain green electricity and mRECs, with a 0.2 sen/kWh administrative fee.

Should you subscribe? A short checklist

- AFA is +3.59 sen now and projected higher through October; a 3-sen 3-year block is cheaper than that exposure today.
- The exemption is discretionary under clause 10.2. Currently in force, subject to review.
- You give up rebates in negative-AFA months and cannot reduce mid-term. Decide with a 3-year view, not July's number.
- Size blocks from 12 months of interval data, at or below a defensible baseline.
- Check remaining quota before you plan around approval.

Want the sizing done from your actual meter data, with the AFA scenarios run against your own load profile? Request a demo and we will walk through it with your bills.