Net Energy Metering
The Ministry has introduced few solar PV initiatives to encourage Malaysia’s Renewable Energy (RE) uptake. Read more about it here at here.
The concept of NEM is that the energy produced from the solar PV system installed will be consumed first, and any excess to be exported and sold to the distribution licensee (such as TNB /SESB ) at the prevailing Displaced Cost prescribed by the Energy Commission. Read more about it here.
Frequently asked questions (FAQ) regarding Net Energy Metering (NEM). Read more about it here.
The government of Malaysia, through the EC, has issued guidelines in 2016 for the purpose of implementing the Net Energy Metering (NEM) scheme, in line with the EC’s function to promote RE. Read more about it here.
Net Energy Metering (NEM) Concept
The energy generation by NEM consumer will be consumed first which implies less energy import from the utility. The more energy generated from the solar PV system is self-consumed; the more NEM consumers can save their electricity bills (by reducing the electricity imported from the utility). This is especially relevant for consumers that fall under the high electricity tariff block. In many countries, NEM is often used to hedge any future fluctuation or increase in electricity tariff.
Under the NEM, any excess energy generated will be exported to the utility grid and will be paid at the prevailing Displaced Cost as prescribed by the Energy Commission. The priority is for self-consumption, however some premises especially industry or manufacturing companies which may not be operating during the weekends may have excess energy exported to the grid. The credit shall be allowed to roll over for a maximum of 24 months and net-off at prevailing Displaced Cost.
By generating their own clean energy, consumer will contribute to the reduction of CO2 emission, hence reducing the carbon foot print and mitigating climate change.
Net Energy Metering (NEM) Malaysia Update 2019