The Government has introduced the Net Energy Metering Scheme to encourage Malaysia’s Renewable Energy (RE) uptake. The concept of NEM allows customers to consume the energy produced from their solar PV installation first. Then, export any excess energy to TNB at the prevailing displaced cost.
The program was first introduced in 2016 to further boost the uptake of solar adoption in Malaysia, but it didn’t really take off until 2019. In November 2020, sectors such as residential, commercial, industrial, and agriculture quickly utilized the 500MW allocation under NEM 2.0. In response, KeTSA (Kementerian Tenaga dan Sumber Asli) recently announced the commencement of NEM 3.0, or Net Energy Metering 3.0.
Net Energy Metering Categories
NEM 3.0 introduces three major new initiatives to further increase the uptake of solar energy. Here are the quota allocations, based on categories:
| Categories | Quota Allocations | Quota Opening Date |
| NEM Rakyat Programme | 100MW | 1st February 2021 – 31st December 2024 |
| NEM GoMEn Programme (Government Ministries and Entities) | 100MW | 1st February 2021 – 31st December 2024 |
| NOVA Programme (Net Offset Virtual Aggregation) | 300MW | 1st April 2021 – 31st December 2024 |
Rakyat Program (For Homeowners)
Homeowners can reduce their energy bills by generating their own electricity with a solar PV system. The program sets the energy offset ratio at 1:1 and offers a 12-month roll-over period. Homeowners can install solar PV systems up to 4kWac for single-phase homes and up to 10kWac for three-phase homes.
NEM GoMEn (Government Ministries and Entities) Program
Government ministries and entities can lower their energy bills by installing solar PV systems. The program provides an energy offset ratio of 1:1 and includes a 12-month roll-over period. Government buildings can install solar PV systems up to 1MWac per account.
The NOVA Program (Commercial & Industrial)
Commercial and industrial sectors can reduce business costs by installing solar PV systems. This program allows participants to:
– Consume the electricity generated by their solar PV systems.
– Sell excess electricity back to the grid at market rate or System Marginal Price (SMP), with the electricity sold converted into credits and applied to the following month’s electricity bill.
– Offset excess electricity by distributing it through virtual aggregation across up to three different electricity bill accounts under the same name.
