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Net Energy Metering (NEM)
Net Energy Metering (NEM) is a government initiative introduced to encourage the use of renewable energy, particularly solar power, among Malaysian consumers. The program has a quota allocation of 2400 MW, available from 2021 to 2025.
At Progressture Solar, we have successfully managed over 800 completed and ongoing clean energy projects in Malaysia, resulting in the generation of 131,400MWh of clean energy and the prevention of 99,600 tonnes of carbon emissions annually. Based on our extensive experience within the energy sector, here’s all you need to know about NEM.
What is NEM 3.0 in Malaysia?
NEM 3.0 is a programme that allows homeowners, businesses or government buildings to leverage solar energy to reduce their electricity bills. It is regulated by the Energy Commission (EC), with the Sustainable Energy Development Authority (SEDA) Malaysia serving as the implementing agency.
According to SEDA, NEM 3.0 will run until 30th June 2024 or until all quotas are allocated. As of January 2025, the balance quota for NEM Rakyat stands at 140 MW and 590 MW for NEM NOVA.
How Does NEM 3.0 Work?
Under the NEM program, you can install solar panels on your property and generate your own electricity. Any excess electricity you generate will be fed back into the grid, and you will receive credits for the energy you contribute. These credits can be used to offset your electricity bills.
The NEM 3.0 comprises three initiatives as below:
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Program NEM Rakyat (Domestic)
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Program NEM GoMEn (Government Ministries and Entities)
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Program NOVA (Commercial & Industrial)
Who is Eligible for NEM NOVA?
Commercial and industrial businesses can apply for NEM NOVA to adopt solar PV systems. They can lower electricity bills by up to 85%, reduce solar payback period, and create new revenue streams.
Successful applicants to the program will be able to:
CONSUME the electricity generated by their solar PV system.
SELL any excess solar-generated electricity back to the grid at the market rate or System Marginal Price (SMP). The electricity sold will be converted into credits and reflected in the following month's electricity bill.
OFFSET any excess electricity generated by their solar PV system by distributing it among up to three different electricity bill accounts under the same name through virtual aggregation.
What about NEM Rakyat?
NEM Rakyat is designed for domestic consumers, meaning, homeowners who are interested to install solar PV systems for their homes or residences.
By adopting rooftop solar systems, homeowners can greatly reduce monthly electricity bills. Furthermore, the government's SolaRIS rebate provides a one-time cash rebate of RM1,000/kWac, up to a maximum of RM4,000 for NEM Rakyat applicants! This can reduce the solar payback period to just 3 to 4 years.
Lower electricity bills
Benefits of NEM Programme
Potential revenue streams
Environmental sustainability
Increased energy independence
Long-term cost savings
Why Choose Progressture Solar for NEM?
At Progressture Solar, our goal is to construct the most reliable, safest, and highest quality solar PV systems for commercial and industrial buildings. We work with the best brands across the globe to ensure the durability and reliability of every element—from solar panels and inverters to wires and bolts.
When you choose Progressture Solar for NEM, you can expect:
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Free consultation to determine if NEM is right for you
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Professional installation of your solar panels
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Ongoing maintenance and support
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Help with the NEM application process
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Competitive pricing and financing options
Talk to an expert today to learn more about NEM or schedule a consultation.
Why You Can Trust Progressture Solar
Progressture Solar is committed to helping businesses achieve net zero by offering tailored solutions for specific needs. As a leading clean energy provider and net-zero partner, our in-house team of experts and professionals reviews our content for accuracy. We also use updated data, facts, and expert advice in all our content.
References
1 Sustainable Energy Development Authority (SEDA) Malaysia. “Net Energy Metering (NEM) 3.0“
2 Suruhanjaya Tenaga (Energy Commission). “Guidelines For Solar Photovoltaic Installation Under Net Offset Virtual Aggregations (NOVA) Programme For Peninsular Malaysia” 5 February 2024.