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About NEM 3.0

The Government has introduced the Net Energy Metering Scheme in November 2016 with quota allocation of 500 MW up to year 2020 to encourage Malaysia’s Renewable Energy (RE) uptake. The concept of NEM is that the energy produced from the solar PV installation will be consumed first, and any excess will be exported to TNB at prevailing displaced cost.

As an effort to encourage the NEM uptake, the NEM 2.0 was introduced on 1st January 2019, and the true net energy metering concept was adopted, where it allows excess solar PV generated energy to be exported back to the grid on a “one-on-one” offset basis. The NEM scheme were executed by the Ministry of Energy and Natural Resources (KeTSA), regulated by the Energy Commission (EC), with Sustainable Energy Development Authority (SEDA) Malaysia as the Implementing Agency (IA). The 500MW quota under the NEM 2.0 has been fully subscribed by 31st December 2020.

Due to overwhelming response from the PV industry and in an effort to boost the usage of Solar energy, the Energy and Natural Resources Minister via a press statement by KeTSA on 29th December 2020 has introduced the new Net Energy Metering 3.0 programme (NEM 3.0) to provide more opportunities to electricity consumers to install solar PV systems on the roofs of their premises to save on their electricity bill. The NEM 3.0 will be in effect from 2021 to 2023 and the total quota allocation is up to 800 MW. The NEM 3.0 will be divided into the following three (3) new initiatives/categories :-

Initiative/Categories

Quota Allocation (MW)

Quota Opening Date

NEM Rakyat Programme

100MW

1st February 2021 – 31st December 2023

NEM GoMEn Programme (Government Ministries and Entities)

100MW

1st February 2021 – 31st December 2023

NOVA Programme (Net Offset Virtual Aggregation)

600MW

1st April 2021 – 31st December 2023

Information extracted from SEDA

NEM Rakyat

Under the NEM Rakyat Programme, Domestic Consumer(s) who has a solar PV installation on the roof-top of their premises will consume the energy produced first, and any excess will be exported to the TNB grid. The credit to be received for such excess energy will be used to offset part of the electricity bill on a “one-on-one” offset basis for a period of ten (10) years of operation.

Quota Eligibility Criteria Tariff Category Capacity limits
100MWac • Registered consumers of TNB in Peninsular Malaysia or a person applying to be a consumer of TNB
• Domestic Consumer(s) who have not participated in any of the prior solar programmes;
*Domestic Consumer means a consumer occupying a private dwelling premise which is not used as a hotel, boarding house or used for the purpose of carrying out any form of business, trade, professional activities or services
Domestic • Single phase – 4 kWac
• Three phase – 10 kWac

The energy generated by NEM consumers will be consumed first which implies that less energy will be imported from the Distribution Licensee (DL). In many countries, the NEM scheme is effective to hedge against fluctuation or increase in electricity tariff in the future. This is especially relevant for consumers that fall under the high electricity tariff block.Benefits of NEM Rakyat

Under this program, any excess energy generated will be exported to the utility grid and will be paid on a “one-on-one” offset basis. The priority is for self-consumption, however most of domestic consumers may not be at home during the weekdays and may have excess energy exported to the grid. The credit shall be allowed to roll over for a maximum of 12 months.

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Information extracted from SEDA