Net Energy Metering (NEM)

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ENERGY YOU PRODUCE

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ENERGY YOU CONSUME

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NET ENERGY

Concept of NEM

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The energy generated by Solar PV is consumed first and any excess energy generated is exported to the grid and will be off set againts “one-to-one” basis.

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This program is applicable to all TNB & SESB registered consumers in the residential, commercial, industrial and agriculture sector.

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The excess energy exported to the grid are allowed to roll over for a maximum of 24 months.

The Benefits

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ENJOY DOUBLE TAX EXEMPTION
Incentive of 24% Investment Tax Allowance (ITA) from MIDA & 24% of Capital Allowance (CA).

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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)

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TO REDUCE ELECTRICITY COST
Any excess energy generated will be exported to the utility grid and off set against one-to-one basis.

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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.

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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.

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