Net Energy Metering

Overview of NEM

The Ministry has introduced few solar PV initiatives to encourage Malaysia’s Renewable Energy (RE) uptake. Read more about it here at here.

NEM Concept

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.

NEM Guidelines

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.

Overview of Net Energy Metering (NEM) in Malaysia

The Ministry has introduced few solar PV initiatives to encourage Malaysia’s Renewable Energy (RE) uptake. From the RE townhall held on 12th July 2018, one of the key issues highlighted by the PV industry is the need to change the concept of NEM from the existing net billing to true net energy metering. This is will help improve the return of investment of solar PV under the NEM.


Effective on 1st January 2019, the Net Energy Metering (NEM) will be improved by adopting the true net energy metering concept and this will allow excess solar PV generated energy to be exported back to the grid on a "one-on-one" offset basis. This means that every 1kWh exported to the grid will be offset against 1kWh consumed from the grid, instead of at the Displaced Cost previously.


The quota allocation for NEM is 500 MW up to year 2020. Quota allocation will be divided into domestic and non-domestic category. Agriculture will be a new category to be added to the NEM scheme. The NEM category has been divided into 4 categories which are Residential, Commercial, Industrial and Agriculture. The new NEM scheme is only applicable to Peninsular Malaysia and applicants must be a registered TNB customers. NEM is executed by the Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC), regulated by the Energy Commission (EC), with Sustainable Energy Development Authority (SEDA) Malaysia as the implementing agency.


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