NEM 3.0 Malaysia: Everything You Need to Know

Posted on:
January 8, 2024

The Net Energy Metering (NEM) scheme has been instrumental in promoting solar energy adoption in Malaysia. Since its inception in 2016, the program has evolved significantly, with NEM 3.0 currently in effect from 2021 to 2024. This article will guide you through the various aspects of NEM 3.0 and how you can benefit from it.

What is NEM 3.0?

NEM 3.0 is the latest iteration of Malaysia's Net Energy Metering scheme. It allows electricity consumers to install solar photovoltaic (PV) systems on their premises and use the generated energy to offset their electricity bills. Any excess energy produced is exported to the grid and credited at a 1:1 offset ratio, making it a highly attractive option for homeowners, businesses, and government entities.

Key Features of NEM 3.0

  1. NEM Rakyat (Residential Program):
    • Eligibility: Homeowners can install solar PV systems with a maximum capacity of 4kWac (single-phase) or 10kWac (three-phase).
    • Quota: 350MW allocated, open until December 2024 or until fully subscribed.
    • Benefits: Reduces household electricity bills, and any excess energy is exported back to the grid.
  2. NEM GoMEn (Government Ministries and Entities Program):
    • Eligibility: Government buildings can install solar PV systems up to 1MWac.
    • Quota: 100MW allocated, open until December 2024 or until fully subscribed.
    • Benefits: Significant savings on energy costs for government entities, with a 12-month credit rollover.
  3. NOVA (Commercial and Industrial Program):
    • Eligibility: Commercial and industrial entities can install solar PV systems.
    • Quota: 300MW allocated, open until December 2024 or until fully subscribed.
    • Benefits: Reduces operational costs, excess energy can be sold back to the grid or distributed across multiple accounts under the same business.

Financial Incentives

Homeowners participating in the NEM Rakyat program can now receive up to RM4,000 in rebates under the SolaRIS program, launched in April 2024. This initiative aims to reduce the upfront cost of solar PV system installation for residential consumers, making it more accessible and appealing. Interested participants need to meet specific eligibility criteria, including quota availability and technical requirements, to qualify for the rebate. This additional financial support, combined with potential savings on electricity bills, further enhances the attractiveness of adopting solar energy at home.

Program Evolution and Quota Allocations

The NEM scheme was initially launched in 2016 with a quota of 500MW until 2020. Due to high demand, NEM 2.0 was introduced in 2019, fully subscribing its 500MW allocation by the end of 2020. This paved the way for NEM 3.0, which started in 2021 with a total allocation of 1,550MW across the three key programs mentioned above.

How to Apply for NEM 3.0

  1. Find a Registered Contractor/Service Provider (RC/SP): Choose an approved provider to install your solar PV system.
  2. Submit Technical Assessment and Quota Application: Your RC/SP will handle the application process with the Sustainable Energy Development Authority (SEDA).
  3. System Installation and Approval: Once approved, install the system and apply for a meter to begin generating and offsetting your energy usage.

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