NEM (Net Energy Metering)
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 consume 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 new NEM mechanism will commence on 1st Jan 2019 and applicable to all existing NEM consumers.
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).
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*:
- 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.
For domestic or residential consumers, the allowable maximum capacity of the PV system installed is 12 kWp for single phase system or 72 kWp for three phase systems.
For commercial, industrial and agricultural consumers, the allowable maximum capacity of the PV system installed is 75% of maximum demand or 60% of fuse rating or 60% of current transformer rating.
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?
The detailed guideline/ information will be ready on 22nd Nov 2018. 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.
12 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.
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 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.
Yes, as long as the company is a customer of TNB.
The connection to the TNB network shall be done only through indirect connection, i.e. within the owner’s internal distribution board only.
At the moment there are fiscal incentives offered to eligible companies in the form of Green Technology Incentive by Malaysia Investment Development Authority (MIDA), available until 2020.
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 24 months from the start of NEM consumer’s billing system. No cash will be paid in the NEM scheme.
I saw the 'solar leasing' was introduced during IGEM 2018. May I know 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 term and condition directly with them.
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.
The requirement is based on kWp of installation as below :
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”.