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. This scheme is applicable to all domestic, commercial and industrial sectors as long as they are the customers of TNB (Peninsular Malaysia) or SESB (Sabah and FT Labuan). The PV systems are allowed to be installed at available rooftops or car porch only within their own premise. Based on FiT experience, solar PV is a technology that requires minimal construction and with high take up rate compared to other RE technologies. One factor driving such growth is the declining cost of solar PV systems in recent years. As solar PV technology is more applicable to the NEM, it is the only technology whereby the public at large can play their role in addressing climate change by generating the clean energy, hence reduce the energy consumption from electricity generated by fossil fuel powered generators.
NEM scheme is ideally suitable to complement the current FiT and Large Scale Solar programmes. The NEM scheme is widely adopted globally and can further contribute in achieving the national RE target, and reduce dependency on imported fossil fuels.