Net Energy Metering (NEM)

Introduced in 2016, the Net Energy Matering (NEM) mechanism utilises solar resources for energy generation through the rooftop solar PV Panel. On 1st January 2019, the improved NEM 2.0 was launched by adopting the true Net Energy Metering concept where it allows excess energy generated from the solar PV to be exported back to the grid on a “one-on-one” offset basis. The one-on-one offset means every 1kWh (1 unit of electricity) exported to the grid will be offset against 1kWh consumed from the grid with gazetted tariff.

Currently on its third adaption, NEM 3.0 is a policy framework implemented in 2021 to accelerate the adoption of solar energy by Residential, Commercial & Industrial consumers in Malaysia. Under NEM 3.0, a TNB consumer can install solar on the roof of their premise primarily for self-consumption. Excess energy will be exported to the grid and receive credit which can be used to offset part of the next electricity bill.

The mechanism is an excellent investment for homeowners to explore as it enables electricity consumers to generate and use the electricity from the rooftop solar PV, allowing them to play an active role in RE generation. The energy generated from the solar PV system ensures that consumers utilize energy from clean energy resources, which helps to reduce the carbon footprint and protect the environment.

NEM Rakyat is applicable for residential consumer only. This concept is that energy generated from solar system will be for self-consumption first and any excess energy will be exported to TNB grid on a one-to-one offset basis. Application for quota will be required.

Quota Allocation up to 2023 is 150MW.

Net Offset Virtual Aggregation (NOVA) is applicable for Commercial & Industrial consumer only. This concept is that energy generated from solar system will be for self-consumption first and any excess energy will be exported to TNB based on average System Marginal Price (SMP). Application for quota will be required.

Quota Allocation up to 2023 is 800MW.

Self-Consumption (SELCO) is applicable for Residential, Commercial & Industrial consumer. This concept is that energy generated from solar system will be for self-consumption only without any energy export to TNB grid. Application for quota is not required.