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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 1450 MW, available from 2021 to 2024.
At Progressture Solar, we have successfully managed over 740 completed and ongoing clean energy projects in Malaysia, resulting in the generation of 78,840MWh of clean energy and the prevention of 59,760 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?
Under NEM 3.0, several new initiatives have been introduced to increase the uptake of solar energy, and it is regulated by the Energy Commission (EC), with the Sustainable Energy Development Authority (SEDA) Malaysia serving as the implementing agency. These initiatives include NEM Rakyat, NEM GoMEn, and NEM NOVA. Additionally, virtual NEM allows commercial and industrial sectors to generate and distribute solar energy.
According to SEDA [1], NEM 3.0 was supposed to run until 2023 with a total quota allocation of up to 1050MW. But today, the NEM 3.0 programme continues with an added quota offer of 100MW for NEM Rakyat and 300MW for NEM NOVA. The offer period will run until 31 December 2024 or until all quotas are allocated.
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.
NEM is available to all Malaysians who generate electricity from renewable energy sources, including solar panels, wind turbines, and biomass systems.
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)
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.
The NEM NOVA program aims to help commercial and industrial businesses reduce operating costs by adopting solar PV systems. Successful applicants to the program can:
As of today, the previous quota of 150MW for NEM Rakyat and 800MW for NEM NOVA are running out. Hence, the additional NEM NOVA capacity of 300MW of solar quota offers businesses the golden opportunity to lower electricity bills by up to 85%, reduce solar payback period, and create new revenue streams.
Who is Eligible for the NEM NOVA Programme?
Based on the Malaysia Energy Commission's guidelines [2], applicants must be non-domestic consumers who are existing or applying to be a consumer of the distribution licensee. Additionally, applicants must meet the following criteria:
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Not blacklisted in the system for various reasons (such as not paying the electricity bill, committing an offence, etc.)
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A registered consumer of the distribution licensee in Peninsular Malaysia only
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Not a delinquent who has not paid their bills or is involved in pending meter tempering cases
Lower electricity bills
Benefits of NEM NOVA for Business Owners
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.