NEM (Net Energy Metering)
What is the Net Energy Metering (NEM)?
A mechanism where an eligible consumer installs a solar PV system primarily for his own use and the excess of energy (kWp) to be exported to the grid and to be offset against kWp from the energy provided by the Distribution Licensee (TNB) to the electricity consumed during the applicable billing period.
When will the new NEM commence (where there is no difference in the sale and purchase price of electricity)?
The NEM Rakyat and the NEM GoMEn are open for application from 1 February 2021 to 31 December 2023 and are available on a first-come-first-served basis.
What is one-on-one offset?
One-on-one offset means every 1kWp exported to the grid will be offset against 1 kWp consumed from the grid with a gazetted tariff. The export charges are charged in descending order (start from the highest applicable rate).
Who can apply for NEM?
Registered consumers of Tenaga Nasional Malaysia (TNB) in Peninsular Malaysia.
- Not blacklisted (No outstanding bill & meter tampering)
Open to all categories of TNB consumers under the following tariff*:
- Domestic/Residential (Kediaman)
- Commercial (Komersial) [inclusive of government buildings]
- Industrial (Perindustrian)
- Agriculture (Pertanian)
* Refer to TNB consumers electricity tariff
The resource for producing electricity shall be from Solar Photovoltaic (PV) only
What types of installation are eligible under NEM?
- On rooftop of buildings
- On garage, car park or similar buildings
Note : For ground-mounted system, it may be allowed on case-by-case basis and the installation shall be within the compound of the applicant’s premises and approved by the Energy Commission.
What is the maximum capacity that one can apply for?
For Domestic Consumers, the maximum capacity of the PV Installation shall be as follows:
a) for single phase NEM Consumer, not more than 4 kWac; and
b) for three (3) phase NEM Consumer, not more than 10 kWac.
For Government Building, the maximum capacity of the PV Installation shall be as follows:
- for 1 Account, not more than 1MWac.
For Commercial & Industrial, the maximum capacity of the PV Installation shall be as follows:
a) Nett offset - max install for 1 MWac
b) Virtual aggregation - max install for 5 MWac. 1 company name with multipls TNB meters.
How can I apply for the NEM?
Applications can be made via eNEM system. NEM applicant shall appoint SEDA’s Registered PV Service Provider (RPVSP) for NEM application submission. For a better understanding, please refer to NEM’s Process Flowchart at “Net Metering” >> “NEM Workflow” tab.
What is Supply Agreement with Renewable Energy (SARE) and where can I get more information about it?
There will be a tri-partied agreement between the three parties (Customers Solar Investor/Lessor and TNB). TNB will provide the service of billing, collection and remittance of the payment by customer to solar investor/lessor and in return, TNB imposes a small service charge. The business models supported by SARE includes solar leasing, PPA or a hybrid of both.
What is the maximum duration allowed from application to proposed NEMCD?
3 months from the date of NEM is approved until the date of proposed NEM contract with TNB, failing which the quota allocated will be refused and offered back to other potential NEM applicants.
What types of meter are required for NEM?
2 types of meter are required as below:
a) TNB’s bi-directional meter (with import-export feature) to record the amount of electricity consumed, produced or exported;
b) PV meter/data logger/inverter with monitoring feature to record the total amount of electricity generated by the PV system.
Optional – May install check meter for measurement of the energy export (if applicable) and shall be of the same or equivalent to the standards of the consumer meter installed at the premises by TNB;
Am I eligible to participate in NEM?
Yes, as long as you are a customer of TNB. The basis is always your electricity bill. Please ensure you are a registered customer of TNB (your name/ company as appeared in the TNB bill), only then you are eligible to participate in NEM.
If I plan to or have installed Solar PV system for self-consumption (SELCO) and have taken the necessary steps to ensure no reverse flow or energy exported to the grid, do I need to apply for NEM?
No, but for PV system with capacity above 72 kWp, generation license (private) from ST is required and subject to complying with the relevant rules under the Electricity Supply Act (ESA). For more information, please refer to the Guidelines on the Connection of Solar Photovoltaic Installation for Self-Consumption issued by ST.
Is a non-local / 100% foreign company eligible to participate in NEM?
Yes, as long as the company is a customer of TNB.
What is the connection between the consumer’s solar PV system and the DL distribution system?
The connection to the TNB network shall be done only through indirect connection, i.e. within the owner’s internal distribution board only.
What types of incentives are available for NEM consumers?
At the moment, there are fiscal incentives offered to eligible companies in the form of Green Technology Incentive by Malaysia Investment Development Authority (MIDA)
Is there any tenure of the new NEM contract between TNB and roof owner?
There is no tenure period between the new NEM and old NEM. The NEM contract shall remain in effect unless otherwise terminated by either party or cancellation of the main electricity contract.
Will the owner be able to cash out for excess of power generated each month or just get credit for next month use?
Any excess of solar power generated is allowed to roll over within 12 months from the start of NEM consumer’s billing system. No cash will be paid in the NEM scheme.
I saw that 'solar leasing' was introduced during IGEM 2018. May I know whether the capital for installation is provided by company (service provider) or government grant?
The capital for installation will be provided by Investor. Please check the terms and conditions directly with them.
What is NEM Assessment Study (NEMAS)?
The study will determine the technical impact to the Distribution Licensee’s electricity distribution network and establish technical and safety requirements that may be necessary for the installation for capacity more than 72 kWp.
Is ST License required under NEM?
Only applicable for solar PV system installation:
- above 24kWp for single phase; and
- above 72kWp for three phase
Any person who uses, works or operates the installation shall require a license as stipulated under the ST “Guidelines on Licensing Under Section 9 of the Act”.
What are the required information & documents for NEM application?
- Applicant’s Profile
- Project information
- Technical information
- Proposed work plan
- Single Line Diagram (SLD) endorsed by Competent Person;
- Latest electricity bill
- Load Profile Report
- NEMAS or PSS Report
- Document proofing site ownership