What is the concept of Net Energy Metering (NEM) 3.0?

The Government has introduced the Net Energy Metering (NEM) 3.0 programme to provide opportunity for more users to install the solar photovoltaic (PV) systems on the roofs of their respective buildings for electricity bill reduction. The NEM 3.0 programme involves three initiatives:

1) NEM Rakyat programme
2) NEM GoMEn programme (Government Ministries and Entities)
3) NOVA (Net Offset Virtual Aggregation) programme

 

More details are available in the table below:

When will the new NEM 3.0 be implemented and the amount of quotas to be offered?

NEM3.0 offers a quota of 500 megawatts (MW) from 2021 to 2023. The quota breakdown are as follows:

Programme Quota offered (MW) Implementation period
NEM Rakyat 100 1st February 2021 – 31st December 2023
NEM GoMEn 100 1st February 2021 – 31st December 2023
NOVA 300 1st April 2021 – 31st December 2023
Who can apply for NEM Rakyat and NEM GoMEn?
  • Registered consumers or a person applying to be a Consumer of Tenaga Nasional Malaysia (TNB) in the Peninsular Malaysia;
  • Applicant who has no solar PV Installation under previous solar PV programme; and
  • Applicant that meets the following criteria:

 

 

Programme Applicant Criteria Categories of TNB consumers under the following tariff
NEM Rakyat A domestic consumer occupying a private dwelling premise which is not used as a hotel, boarding house or used for the purpose of carrying out any form of business, trade, professional activities or services Domestic Tariff
NEM GoMEn A ministry, department or statutory body established by the government at all levels of administration whether at the federal, state or district levels including local authorities Commercial Tariff
What are the types of installation eligible under NEM Rakyat and NEM GoMEn?

The solar PV Installation shall be of PV panels mounted on the rooftop of the building within the same premise.

What is the maximum capacity limit per application?
Programme Capacity limit
NEM Rakyat Single phase – not more than 4 kW
Three phase – not more than 10 kW
NEM GoMEn

The maximum capacity of the PV Installation shall not exceed 1,000 kW and subject to the following conditions:

a) for Medium Voltage Consumers, not exceeding 75% of Maximum Demand based on:

  • the average of the recorded Maximum Demand of the past 1 year; or
  • the declared Maximum Demand for Consumers with less than 1 year’s record; and

b) for Low Voltage Consumers, not exceeding 60% of fuse rating (for direct meter) or 60% of the current transformer (CT) rating of the metering current transformers.
How can I apply for NEM Rakyat and NEM GoMEn?

Applications for NEM Rakyat and NEM GoMEn programmes can be made via SEDA’s eNEM system https://services.seda.gov.my/nem/home . The NEM applicant shall appoint SEDA’s Registered PV Service Provider (RPVSP) (http://www.seda.gov.my/directory/registered-pv-service-provider-directory/) for NEM application submission.

After obtaining the NEM approval, when shall I start installing the PV system?

The Applicant should commence to install the solar PV Installation within three (3) months from the date of the NEM approval, failing which, the approval shall be cancelled. Any processing fee paid shall not be refunded.

What are the types of meter required for NEM Rakyat and NEM GoMEn?

Two types of meter are required as below:

  1. TNB’s bi-directional meter (with import-export feature) to record the amount of electricity consumed, produced or exported;
  2. PV meter to record the total amount of electricity generated by the PV system.
If I am planning to install 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?

There is no need to apply for NEM. However, for PV systems with capacity above 72 kW, a generating license (private) from ST is required and subject to 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.

How is the connection between the consumer’s solar PV system and TNB distribution system?

The connection to 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 (https://www.mida.gov.my/forms-and-guidelines/tax-incentives-for-green-industry/) by Malaysia Investment Development Authority (MIDA).

Is there any tenure in the NEM contract between TNB and the NEM approval holder?

The NEM tenure will be for a period of ten (10) years on commencement of the NEM Contract. After the ten (10) years period,the solar PV Installation shall be strictly for self-consumption in the Premise where the solar PV installation is installed, and no offset and roll-over will be allowed for any excess Energy exported.

Will the owner be able to cash out the excess energy generated each month?

There will be no cash transaction under the NEM Rakyat and NEM GoMEn Programme but any excess energy generated from Solar PV system which is not being consumed may be exported to the Distribution System. The credit to be received for such excess energy may be used to offset part of the electricity bill for energy provided by TNB during the applicable Billing Period. The net credit shall be allowed to roll over for a maximum of twelve (12) months within the Settlement Period. Any available Energy after the period shall be forfeited.

What is NEM Assesment Study (NEMAS) and who will conduct the NEMAS?

The NEMAS is a study to determine the technical impact to TNB’s electricity distribution network and establish technical and safety requirements that may be necessary for the installation.

The NEM Consumer shall engage with TNB or any party approved by the Energy Commission to conduct NEMAS for Installation above 72kW.

The fees and requirement are based on capacity below:

Installed Capacity
(kW)		 Study Required Fee of Study (if conducted by
TNB)
1 kW – 72 kW No N/A
> 72 kW – 180 kW Yes RM 1,000
> 180 kW – 425 kW Yes RM 5,000
> 425 kW – 1 MW Yes RM 8,000
I have obtained NEMAS approval but did not secure any quota for NEM 2.0. Can I still use the NEMAS approval for NEM 3.0?

Yes. As long as the NEMAS is still valid and within the capacity that is approved by TNB.

Is the ST Generating License required for application under NEM Rakyat and NEM GoMEn?

Only applicable for solar PV system installation above 24kWp for single phase and above 72kWp for three phase.

What are the required information & documents for NEM application?

Information:

  • Applicant’s profile;
  • Project Information;
  • Technical Information;
  • Proposed work plan;

Documents:

  • Detailed Engineering Design endorsed by Competent Person;
  • Latest electricity bill (Latest 3 months) or invoice by TNB;
  • NEMAS Approval and report (For capacity above 72kW)
  • Document proofing site ownership
How do I check the list of electrical competent person (e.g.: wireman) registered with the Energy Commission?

You can check the list of electrical competent person at Energy Commission’s website at https://ecos.st.gov.my/ms/senarai-orang-kompeten-berdaftar-elektrik-