Net Energy Metering (NEM) 3.0

By Sustainable Energy Development Authority

(SEDA) Malaysia

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The Government has introduced the Net Energy Metering Scheme in November 2016 with quota allocation of 500 MW up to year 2020 to encourage Malaysia’s Renewable Energy (RE) uptake. The concept of NEM is that the energy produced from the solar PV installation will be consumed first, and any excess will be exported to TNB at prevailing displaced cost.

 

As an effort to encourage the NEM uptake, the NEM 2.0 was introduced on 1st January 2019, and the true net energy metering concept was adopted, where it allows excess solar PV generated energy to be exported back to the grid on a “one-on-one” offset basis. The NEM scheme were executed by the Ministry of Energy and Natural Resources (KeTSA), regulated by the Energy Commission (EC), with Sustainable Energy Development Authority (SEDA) Malaysia as the Implementing Agency (IA). The 500MW quota under the NEM 2.0 has been fully subscribed by 31st December 2020.

 

Due to overwhelming response from the PV industry and in an effort to boost the usage of Solar energy, the Energy and Natural Resources Minister via a press statement by KeTSA on 29th December 2020 has introduced the new Net Energy Metering 3.0 programme (NEM 3.0) to provide more opportunities to electricity consumers to install solar PV systems on the roofs of their premises to save on their electricity bill. The NEM 3.0 will be in effect from 2021 to 2023 and the total quota allocation is up to 500 MW. The NEM 3.0 will be divided into the following three (3) new initiatives/categories :-
Initiative/Categories Quota Allocation (MW) Quota Opening Date
Program NEM Rakyat 100MW 1st February 2021 – 31st December 2023
Program NEM GoMEn (Government Ministries and Entities) 100MW 1st February 2021 – 31st December 2023
Program NOVA (Net Offset Virtual Aggregation) 300MW 1st April 2021 – 31st December 2023
Concept for NEM Rakyat
Under the NEM Rakyat Programme, Domestic Consumer(s) who has a solar PV installation on the roof-top of their premises will consume the energy produced first, and any excess will be exported to the TNB grid. The credit to be received for such excess energy will be used to offset part of the electricity bill on a “one-on-one” offset basis for a period of ten (10) years of operation.
Quota Eligibility Criteria Tariff Category Capacity limits
100MWac • Registered consumers of TNB in Peninsular Malaysia or a person applying to be a consumer of TNB
• Domestic Consumer(s) who have not participated in any of the prior solar programmes;
*Domestic Consumer means a 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 • Single phase – 4 kWac
• Three phase – 10 kWac
Benefits of NEM Rakyat

The energy generated by NEM consumers will be consumed first which implies that less energy will be imported from the Distribution Licensee (DL). In many countries, the NEM scheme is effective to hedge against fluctuation or increase in electricity tariff in the future. This is especially relevant for consumers that fall under the high electricity tariff block.

 

Under this program, any excess energy generated will be exported to the utility grid and will be paid on a “one-on-one” offset basis. The priority is for self-consumption, however most of domestic consumers may not be at home during the weekdays and may have excess energy exported to the grid. The credit shall be allowed to roll over for a maximum of 12 months.

Concept for NEM GoMEn

The concept of NEM GoMEn is that the energy produced from the solar PV installation on Government premises will be consumed first, and any excess will be exported to the TNB grid. The credit to be received for such excess energy will be used to offset part of the electricity bill on a “one-on-one” offset basis for a period of ten (10) years of operation.

Quota Eligibility Criteria Tariff Category Capacity limits
100MWac

• Registered consumers or applying to be a consumer of TNB in Peninsular Malaysia

• Government Agency(ies) who have not participated in any of the prior solar programmes;

*Goverment Agency means 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

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.

Benefits of NEM GoMEn
The energy generated by NEM consumers will be consumed first which implies that less energy will be imported from the utility. In many countries, the NEM scheme is effective to hedge against fluctuation or increase in electricity tariff in the future. This is especially relevant for consumers that fall under the high electricity tariff block.

 

Under this program, any excess energy generated will be exported to the utility grid and will be paid on a “one-on-one” offset basis. The priority is for self-consumption, however some premises which are not operating during the weekends or public holiday may have excess energy exported to the grid. The credit shall be allowed to roll over for a maximum of 12 months.
Licensing Requirements
License is required under Section 9 of the Electricity Supply Act for any person to use, work or operate or permit to be used, worked or operated any solar PV Installation above 72kWp for three phase system and above 24kWp for single phase system. The NEM Consumer or the owner of the PV system asset shall apply for a license from the Energy Commission after receiving information that the NEM application has been approved.

Via Power Purchase Agreement (PPA) or Solar Leasing

The enhanced NEM programme has spawn new solar business opportunities for investors in which customers can opt to purchase solar electricity via signing power purchase agreement (PPA) with solar investors, via solar leasing programme or hybrid of both as offered by solar investors

Power Purchase Agreement (PPA)

  • Upfront payment is negotiable and based on agreement between investors and consumers
  • Worry-Free Maintenance & Performance
  • Payment in Energy (RM/kWh) - You will pay for solar energy generated (RM/kWh) from the PV system
  • Longer payback period
  • Installation done by the Investor's EPC contractors
  • System is owned by the Investor

Solar Leasing

  • Worry-Free Maintenance & Performance
  • Longer payback period
  • Fixed Monthly payment (RM) - You pay a fixed monthly "rent" in return for the use of the PV system
  • Installation done by Investor's EPC contractors
  • System owned by after lease period end

Methods Of Payment

Direct Contract
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  • 2 parties agreement : Consumer & Investor
  • Collection of payment between 2 parties
SARE
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  • Tripartite agreement : Consumer, Investor & TNB
  • Collection of payment through electricity bill
  • TNB charges 2 sen/kWh for service fee
  • Non-Payment of outstanding amount - TNB may disconnect the power supply ( ESA Act Sec.29 )

Cash, Or Bank loan/Credit Card

Customers who wish to take part in the enhanced NEM scheme can do an outright purchase of the solar PV system via cash, personal loans or credit card.

Cash

  • One-off payment
  • Homeowner is the system owner

Loan/Credit Card

  • Payment based on system cost & interest rate
  • Period of Payment term can be vary
  • Fixed monthly payment
  • Upfront cost depends on system cost
  • Homeowner is system owner
  • Maintenance and the performance based on Manufacturer

Guidelines of Solar Photovoltaic Installation on Net Energy Metering (NEM) Scheme

 

Description Download
Guideline For Solar Photovoltaic Installation Under The Programme Of NEM Rakyat And NEM GoMEn In Peninsular Malaysia

PROCEDURE FOR NET ENERGY METERING ASSESSMENT STUDY (NEMAS)

Before applying for the NEM application, the interested party is required to contact the Distribution Licensee (TNB) to conduct NEM Assessment Study (NEMAS) for installation above 72 kW. The requirement for a mandatory study is generally based on the rated kW of the proposed installation as shown table below :

Installed CapacityStudy RequiredFee of Study
1-72 kWNo-
>72 kW - 180 kWYesRM1,000.00
>180 kW - 425 kWYesRM5,000.00
>425 kW - 1 MWYesRM8,000.00

The studies shall be conducted by the DL or its appointed consultant to establish the technical and safety requirements and determine the feasibility of the connection.

DescriptionVersionDownload
NEMAS Process FlowNEW as of 2 October 2019
NEM - Technical Study Application FormNEW as of 2 July 2018
126.23 KB
1476 Downloads
NEM Customer Load Profile FormNEW as of 2 July 2018
65.46 KB
1453 Downloads
List of TNB Nodal PointsNEW as of 14 April 2020
59.39 KB
851 Downloads
List of Qualified ConsultantsUPDATED as of 19 February 2021

PROCEDURE FOR NEM METER APPLICATION AND SIGNING NEM CONTRACT

  • Please click the Flowchart of NEM Meter Application Process  for the details on workflow.
  • NEM applicant must submit the application, only after all of the installation work for Solar PV fully completed.
  • Please ensure that meter requirement is fulfilled according to TNB’s Electricity Supply Application Handbook (ESAH) obtainable from TNB’s website, prior submitting the application.
  • Kindly update the customer’s email address in NEM Meter Application Form and NEM Declaration Form in order to ensure delivery of demand letter, NEM Welcome Letter and NEM bill.
  • Only fully-completed application will be processed. Incomplete application will be returned to applicant. TNB reserves the right to reject incomplete submission.
  • Submission must be done at TNB Subzone Office, including the following forms and supporting documents:

Net Energy Metering (NEM) Meter Application with all of the forms and supporting documents as below :-

  • NEM Meter Application Form
  • NEM Certificate
  • Pictures of TNB meter and interconnection from the grid;
  • Picture of proposed meter location (If there are changes of meter location for the existing meter)

NEM Contract including the following forms and supporting documents as below:-

  • NEM Declaration Form (TNB Contract)
  • Form G & Form H
  • A copy of Generating License by Suruhanjaya Tenaga (subject to requirement according to Electricity Supply Act 1990)
  • NEM Contract (Domestic/Non Domestic)
  • TNB Inspection & Commissioning Form
DescriptionVersionDownload
NEM Meter Application FormUPDATED as of 27 July 2020
464.12 KB
853 Downloads
NEM Rakyat & NEM GoMEn Application Form (TNB Contract) NEW as of 30 January 2021
TNB Inspection & Commissioning FormNEW as of 2 July 2018
147.71 KB
1608 Downloads

For any enquiries, please contact :

Puan Sunarni binti Maulan

 

Telephone : 03-7967 9222
Email : sunarni@tnb.com.my / re@tnb.com.my

 

Tenaga Nasional Berhad, Level 16, Wisma TNB
No 19, Jalan Timur, 46200, Petaling Jaya, Selangor Darul Ehsan.

RPVI is a Registered Solar PV Investor under the NEM Programme that enables any company to become an investor under the solar PV project. Under RPVI, investors provide power purchase agreement (PPA) and Solar Leasing services.

RPVI Directory
Local RPVI
  • No capacity limit
  • Must be incorporated / established locally
  • Minimum paid-up capital of RM1 million
Foreign RPVI
  • Provide services with a capacity exceeding 250 kWac;
  • Must be incorporated / established locally;
  • Must have a minimum paid-up capital of Ringgit Malaysia: Ten Million (RM10,000,000.00);
  • Ensure that at least 80% of the company’s employees are local workers;
  • Has 100% local Engineering, Procurement and Construction (EPC).

RPVSP is a Registered PV Service Providers (RPVSP) companies which includes services such as consultations, designing, supplying, installation and testing & commissioning of a complete solar PV system.

RPVSP Directory

To learn on how you can take part in this NEM scheme, here are the options of solar PV purchasing modes that you can choose from:

NEM Workflow
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NEM brochure (BI)-02
RPVSP
RPVI

Join us to preserve our environment and flatten the climate curve for a more sustainable future!

How much can you save by going solar? Let’s find out through our NEM investment calculator.

NEM Calculator
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-

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NEM 3.0 Banner

Name Telephone Email
KOH KENG SEN 03-8870 5838 KohKS@seda.gov.my
IR. MOHD ZAMRI LATON 03-8870 5873 Zamri@seda.gov.my
TS. MOHD IDHAM MOHAMMAD 03-8870 5824 Idham@seda.gov.my
RUBITA HANI ABD.SAMAD 03-8870 5829 Hani@seda.gov.my
FREDERICK WONG TSUN KIONG 088‐252101 Frederick@seda.gov.my
FIKRI MOHD SHAMSUDDIN 03-8870 5828 Fikri@seda.gov.my
SHARINA HISHAMUDDIN 03-8870 5837 Sharina.H@seda.gov.my
AMEER DARWIESS BIN AMRAN 03-8870 5907 Ameer.Darwiess@seda.gov.my
MEJOR PASOK 088‐252101 Mejor@seda.gov.my