Net Energy Metering (NEM)
ENERGY YOU PRODUCE
ENERGY YOU CONSUME
Concept of NEM 3.0
The government has introduced the Net Energy Metering 3.0 programme to provide an opportunity for more users to install solar photovoltaic (PV) systems on the roofs of their respective buildings for electricity bill reduction.
NEM Rakyat aims to help in reducing your energy bills through solar PV system. 100MW quota has been allocated which commenced from 1st February 2021 with 10 years offset period. This will allow excess energy to be exported back to the grid on a “one-on-one” offset basis and the net credit shall be allowed to roll over for a maximum of 12 months. The installed capacity limit for homeowner is 4kWac for single phase and 10kWac for three phase homes.
NEM GoMEN aims to help in reducing government building’s energy bills through solar PV system. This program has an allocated quota of 100MW commencing from 1st February 2021 with a 10 years offset period. This will allow excess energy generated to be exported back to the grid on a “one-on-one” offset basis and net credit shall be allowed to roll over for a maximum of 12 months. The installed capacity limit is 1MWac per account.
(Commercial and Industrial)
NOVA aims to help in reducing business cost for commercial and industrial sector through solar PV system. 300MW quota has been allocated which commenced from 1st April 2021 with a 10-years offset period. The installed capacity limit for this program is as below:
- Net off: 1MWac
- Net off + Virtual Aggregation: 5MWac
More info will be released prior to the launch date.
ENJOY DOUBLE TAX EXEMPTION
Incentive of 24% Investment Tax Allowance (ITA) from MIDA & 24% of Capital Allowance (CA).
TO REDUCE MAXIMUM DEMAND (MD) CHARGES
Save a lot of money in reducing the monthly MD charges (with energy management system and energy storage system)
TO REDUCE ELECTRICITY COST
Any excess energy generated will be exported to the utility grid and off set against one-to-one basis.
CONTRIBUTE TO CSR FOR SUSTAINABILITY DEVELOPMENT
Contribute to the reduction of CO2 emission by reducing carbon footprint and mitigating climate change.
Tax Incentive Application
INVESTMENT TAX ALLOWANCE (ITA)
Every green technology project from the year of assessment 2013 (not earlier than 25th October 2013) until the year of assessment 2023, will incur an Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure. The allowance can be offset against 70% of statutory income in the year of assessment while any unutilized allowances are carried forward until they fully absorbed.
CAPITAL ALLOWANCE (CA)
Capital allowance is claimable deductions from adjustment income for the cost of the solar installation, which falls under Schedule 3 of the income Tax Act 1967. Categorized under ‘Plant & Machinery’, solar PV system are deductible at 20% Initial Allowance (IA) for the first year and 14% Annual Allowance (AA) for subsequent years until the full amount is available.