COMMUNITY RENEWABLE ENERGY AGGREGATION MECHANISM, CREAM

As a LEGA, you can lease unused residential rooftops, install solar panels, and sell the electricity or for your consumption. Homeowners earn rent, you grow your capacity, and together you reduce Malaysia’s carbon footprint.

CREAM Contractual Framework

a program in Malaysia that allows communities to generate solar energy using rooftop systems and sell that electricity directly to nearby consumers. Instead of relying only on the national grid, this system connects local solar producers with local users through a structured and regulated process. It helps homeowners earn income by leasing their rooftops for solar panels, gives consumers access to clean energy, and supports Malaysia’s goal of increasing renewable energy use. The program involves agreements between energy producers, consumers, and utility companies to ensure smooth operation and fair billing.

How CREAM Works for LEGAs

Rooftop Leasing Model

You don’t need to own a building. Under CREAM, you lease unused rooftops from homewners, install and operate the solar panels, and keep full control of the system. This allows you to grow your solar capacity without buying land or property

Revenue from Electricity Sales

The electricity you generate can be sold directly to Local Green Consumers (LGCs) at agreed rates, or exported to the grid under approved government frameworks such as NEDA. Both options create a steady and predictable income stream for your business

Sustainability and Speed

By using existing rooftops, you can expand your solar portfolio faster than building large-scale solar farms, while avoiding the need for new land. Every rooftop project contributes to Malaysia’s decarbonisation targets and strengthens your company’s ESG performance

Frequently Asked Questions

CREAM stands for Community Renewable Energy Aggregation Mechanism.
It enables Local Green Consumers (LGCs) to directly procure green electricity from Local Community Solar Plants (LCSPs) owned and operated by Local Energy Generator and Aggregators (LEGAs) via the electricity supply network in Peninsular Malaysia.

To qualify as a LEGA, an entity must:
•    Own and operate rooftop solar PV systems (LCSPs).
•    Be based in Peninsular Malaysia.
•    Have at least 51% local ownership.
•    Obtain the necessary licenses under the Electricity Supply Act 1990.

As a LEGA, you can:
•    Sell green electricity directly to LGCs through bilateral contracts.
•    Earn revenue from energy sales and potentially from leasing rooftop space.
•    Sell excess energy to the grid via the NEDA mechanism (at RM0.08/kWh or as determined).
•    Transfer Renewable Energy Certificates (RECs) to LGCs, adding value to your offering.

•    Sign a rooftop lease agreement with homeowners.
•    Ensure terms cover installation, maintenance, duration, and compensation.
•    Handle all contractual obligations and disputes directly with homeowners (the Commission does not mediate).

The guidelines do not mandate upfront costs for homeowners.
However, the lease agreement between LEGA and the homeowner may include compensation terms, which are commercially negotiated.

•    Through a Bilateral Energy Supply Contract between LEGA and LGC.
•    Meter readings (MLEGA and MLGC) are used for billing.
•    EUC acts as the supplier of last resort and manages billing.
•    Excess energy can be sold to the grid via NEDA.

There is no fixed duration.
Contract length is determined by the Bilateral Energy Supply Contract and CREAMA, and should reflect commercial terms agreed between parties.

To participate, a LEGA must:
•    Register under NEDA.
•    Sign all required agreements: Bilateral Contract, DRESAA, NEDA Agreement, and CREAMA.
•    Submit a complete application via Single Buyer’s website.
•    Include technical documents, lease agreements, and a decommissioning plan.

•    Promotes community-based solar energy generation.
•    Enables direct access to renewable energy for consumers.
•    Supports Malaysia’s goal of 70% renewable energy by 2050.
•    Encourages ESG adoption and reduces carbon footprint.

Yes. A LEGA can:
•    Contract with multiple LGCs within a ~5 km radius from the LCSPs.
•    Manage multiple LCSPs as long as total capacity is between 100kWp and 2MWp per 11kV feeder.
•    Allocate energy to each LGC and adjust allocations with proper notice.