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
NEM Rakyat Programme 100MW 1st February 2021 – 31st December 2023
NEM GoMEn Programme (Government Ministries and Entities) 100MW 1st February 2021 – 31st December 2023
NOVA Programme (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.
Concept for Net Offset Virtual Aggregation (NOVA) Programme
The concept of Net Offset Virtual Aggregation (NOVA) Programme is that the energy produced from the solar PV installation on a NOVA consumer Premise shall be consumed and designed primarily for self-consumption. Any excess Energy which is not consumed at the Premise where the PV Installation is located due to operational constraints or monthly or seasonal variation in load demands at the said Premises may be exported through the Supply System under one of the following categories:

 

Category ACategory B

– Any excess Energy produced in a month which is not consumed by the NOVA Consumer may be exported via the Supply System to the Distribution Licensee.

– The value of the exported energy shall be credited to the account of the NOVA Consumer to be used to offset the bill payment for the next Billing Period.

– The unit price (RM/kWh) of the Energy exported in the Billing Period to the Supply System shall be based on the Average System Marginal Price (SMP).

– Any excess Energy produced in a month which is not consumed by the NOVA Consumer may be exported via the Supply System to up to three (3) Designated Premises.

– The value of the exported Energy shall be credited to the account of such Designated Premise to be used to offset the bill payment for the next Billing Period.

– The unit price (RM/kWh) of the Energy exported in the Billing Period to the Supply System shall be based on the Average SMP.

– a Designated Premise of the NOVA Consumer includes Premise used or operated by its wholly owned subsidiary company

 

Notes :

  • The period of operation of NOVA programme is 10 years from Commencement Date of the Solar PV Installation.
  • System Marginal Price (SMP) is as defined in the Guidelines For Single Buyer Market (Peninsular Malaysia).
  • Average SMP is a monthly average SMP for the daily period between 7:00 hour to 19:00 hour in the preceding calendar month.
  • Designated premise: premises other than the Premise where the solar PV installation is installed and is designated as such by the Applicant in their application to participate in the NOVA Programme.
Quota Category Eligibility Criteria Tariff Category Capacity limits
300MW A • Registered consumers of TNB in Peninsular Malaysia
• Non- Domestic Consumers of TNB
Commercial, Industrial, Mining and Agriculture NOVA Consumer under Category A shall not install more than 1,000kW for net offset and subject to the following conditions:
1. The maximum capacity of the inverter output of the solar PV Installation shall not be more than 75% of Maximum Demand of the NOVA Consumer under the NOVA Contract.
2. The Maximum Demand of the NOVA Consumer is based on:

• the average of the recorded Maximum Demand of the past twelve (12) months; or
• the declared Maximum Demand for NOVA Consumers with less than twelve (12) months record


3. For low voltage Consumers, the maximum capacity limit is 60% of fuse rating (for direct meter) or 60% of current transformer (CT) rating.
B • Registered consumers of TNB in Peninsular Malaysia
• Non- Domestic Consumers of TNB
• For the purpose of Category B, a Designated Premise of the NOVA Consumer includes Premise used or operated by its wholly owned subsidiary company
Commercial, Industrial, Mining and Agriculture NOVA Consumer under Category B shall not install more than 5,000kW for net offset and virtual aggregation and subject to the following conditions:
1. The maximum capacity of the inverter output of the solar PV installation shall not be more than 100% of Maximum Demand of the NOVA Consumer under the NOVA Contract.
2. The Maximum Demand of the NOVA Consumer is based on:

• the average of the recorded Maximum Demand of the past twelve (12) months; or
• the declared Maximum Demand for NOVA Consumers with less than twelve (12) months record


3. For low voltage Consumers, the maximum capacity limit is 60% of fuse rating(for direct meter) or 60% of current transformer (CT) rating
Benefits of NOVA Programme
  • The energy generated by NOVA consumers will be consumed first which implies that less energy will be imported from the utility.
  • Under this programme, any excess energy generated will be exported to the utility grid and will be credited based on the Average SMP. The priority is for self-consumption, however some premise which are not operating during the weekends or public holiday may have excess energy exported to the grid. The credit amount in the month can be used to offset bill payment for the next Billing Period.
  • NOVA allows any excess Energy produced in a month which is not consumed by the NOVA Consumer to be exported up to three (3) Designated Premise via the Supply System. It will enhance the cost efficiency and maximizing the use of Energy produced by the solar PV Installation.
Licensing Requirement

Any person who uses, works or operates the installation shall require a license as stipulated under the ST Guidelines On Licensing Under Section 9 Of The Act.  Licensing requirements are only applicable for solar PV system installation above 24kW for single phase and above 72kW for three phase.

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

NEM Rakyat & NEM GoMEn

 

Description Version Download
Guideline For Solar Photovoltaic Installation Under The Programme Of NEM Rakyat And NEM GoMEn In Peninsular Malaysia NEW as of 1 February 2021
Net Energy Metering (NEM) Contract for NEM Rakyat UPDATED as of 8 March 2021
Net Energy Metering (NEM) Contract for NEM GoMEn UPDATED as of 8 March 2021

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
2149 Downloads
NEM Customer Load Profile FormNEW as of 2 July 2018
65.46 KB
2014 Downloads
List of TNB Nodal PointsNEW as of 14 April 2020
59.39 KB
1419 Downloads
List of Qualified ConsultantsUPDATED as of 19 July 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
1728 Downloads
NEM Rakyat & NEM GoMEn Application Form (TNB Contract) UPDATED as of 13 July 2021
TNB Inspection & Commissioning FormNEW as of 2 July 2018
147.71 KB
446 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.

NOVA Programme

 

Description Version Download
Guideline For Solar Photovoltaic Installation Under NOVA Programme In Peninsular Malaysia NEW as of 1 April 2021
Category A Contract – Net Offset Contract for Non-Domestic Consumer UPDATED as of 16 April 2021
Category B Contract – Net Offset Virtual Aggregation (Nova) Contract for Non-Domestic Consumer UPDATED as of 16 April 2021

Procedure for Connection Assessment Study (CAS)

Before applying for the NEM application, interested party is required to contact the Distribution Licensee (TNB) to conduct the Connection Assessment Study (CAS). The CAS is a pre-requisite requirement for approval of NOVA application, and it is applicable for installation above 72kW. The study is generally based on the rated kW of the proposed installation as shown in table below:

Installed Capacity (kW) Study Required Fees for Study
1. Installation at Low Voltage & Medium Voltage
1-72kW No -
>72kW – 180kW Yes RM 1000
>180kW – 425kW Yes RM 5000
>425kW – 1,000kW Yes RM 8000
>1,000kW – 2,000kW Yes RM 15000
>2,000kW – 5,000kW Yes RM 20000
2. Installation at High Voltage based on the charges by the consultant

Procedure For NOVA Meter Application and Signing NOVA Contract

  • Please click the Flowchart of NEM Meter Application Process for the details on workflow.
  • NOVA 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 NOVA Application Form in order to ensure delivery of demand letter, NOVA Welcome Letter and NOVA 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:

 

NOVA Meter Application with all of the forms and supporting documents as below :-

  • NOVA Application Form
  • NOVA 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)

 

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

  • NOVA Application Form (TNB Contract)
  • Form G & Form H
  • A copy of Generating License by Suruhanjaya Tenaga (subject to requirement according to Electricity Supply Act 1990)
  • NOVA Contract (Category A/Category B)
  • TNB Inspection & Commissioning Form
Description Version Download
NOVA Application Form UPDATED as of 13 July 2021
TNB Inspection & Commissioning Form NEW as of 2 July 2018

 

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
NEM brochure (BI)-02
RPVSP
RPVI

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

To learn on how you can take part in this NEM scheme, here are the workflow that you can refer:

NEM Workflow
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To learn on how you can take part in this NEM scheme, here are the NOVA workflow that you can refer:

NEM Workflow
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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:

(source: KeTSA Minister’s press release dated 29 Dec 2020)

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
How can I apply for NEM Rakyat, NEM GoMEn and NOVA?

Applications for NEM Rakyat, NEM GoMEn and NOVA 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 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).

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

Two types of meter are required as below:

  1. The Bi-directional Meter shall be able to measure and record the electricity supplied by the Distribution Licensee to the NOVA Consumer and the Energy exported by the NOVA Consumer to the Supply System. The Bi-directional Meter shall be supplied and installed by the Distribution Licensee.
  2. The PV Meter for measuring the Energy produced by the solar PV installation shall be installed and maintained by the NOVA Consumer.
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.

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

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.

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

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

Any person exempted from the licensing requirements under section 9 of the Act pursuant to the Notification on Exemption Under Section 54 [P.U.(B) 342/2008] shall complete a form as attached in Attachment 1 (found in the Guidelines for NEM 3.0) and return the same to the Commission no later than:

 

NEM GoMEn

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

Any person exempted from the licensing requirements under section 9 of the Act pursuant to the Notification on Exemption Under Section 54 [P.U.(B) 342/2008] shall complete a form as attached in Attachment 1 (found in the Guidelines for NEM 3.0) and return the same to the Commission no later than twenty-eight (28) days after it is notified of its approval as a NEM GoMEn Consumer by the Distribution Licensee.

 

NOVA

Applicants are to note and comply to the licensing requirements stipulated under the Act and its subsidiary legislations. The Applicant shall apply for a licence from the Commission no later than twenty-eight (28) days after being notified by SEDA Malaysia that the application has been approved.

Any person exempted from the licensing requirements under section 9 of the Act pursuant to the Notification On Exemption Under Section 54 [P.U.(b)342/2008] shall complete the form attached Attachment 1 (found in the Guidelines for NOVA) and submit the same to the Commission no later than twenty eight (28) days before the Commencement Date.

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-

I am an investor, can I claim for Environment attributes?

No it is solely for the benefit of consumers (NEM Rakyat / GoMEn / NOVA Consumers)

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.

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.

Does the applicant need to do NEMAS for NEM NOVA?

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 Rakyat & NEM GoMEN?

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

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
What NOVA stands for and what is the programme about?

NOVA stands for Net Offset Virtual Agrregation (NOVA).

The concept of NOVA Programme is that the energy produced from the solar PV installation on a NOVA consumer Premise shall be consumed and designed primarily for self-consumption.

Any excess Energy which is not consumed at the Premise where the PV Installation is located may be exported through the Supply System under one of the following categories:

Category A

Any excess Energy produced in a month which is not consumed by the NOVA Consumer may be exported via the Supply System to the Distribution Licensee.The value of the exported Energy shall be credited to the account of the NOVA Consumer to be used to offset the bill payment for the next Billing Period.

Category B

Any excess Energy produced in a month which is not consumed by the NOVA Consumer may be exported via the Supply System to up to three (3) Designated Premises. The value of the exported Energy shall be credited to the account of such Designated Premise to be used to offset the bill payment for the next Billing Period.

 Please see FAQ No.3 & 5 for more details on the categories.

What are the types of installation eligible under NEM NOVA?

The solar PV installation shall be of PV panels mounted on the rooftop of the buildings within the same Premise

What is the maximum capacity limit per application?

The maximum capacity of the PV Installation for each category shall be based on the Maximum Demand of the NOVA Consumer.

Programme Capacity limit
Category A

A NOVA Consumer under Category A shall not install more than 1,000kW for net offset and subject to the following conditions:

a)       The maximum capacity of the inverter output of the solar PV Installation shall not be more than 75% of Maximum Demand of the NOVA Consumer under the NOVA Contract.

b)      The Maximum Demand of the NOVA Consumer is based on:

i)      the average of the recorded Maximum Demand of the past twelve (12) months; or

ii)    the declared Maximum Demand for NOVA Consumers with less than twelve (12) months record.

c)      For low voltage Consumers, the maximum capacity limit is 60% of fuse rating (for direct meter) or 60% of current transformer (CT) rating.

Category B

A NOVA Consumer under Category B shall not install more than 5,000kW for net offset and virtual aggregation and subject to the following conditions:

a)       The maximum capacity of the inverter output of the solar PV installation shall not be more than 100% of Maximum Demand of the NOVA Consumer under the NOVA Contract.

b)      The Maximum Demand of the NOVA Consumer is based on:

i)       the average of the recorded Maximum Demand of the past twelve (12) months; or

ii)      the declared Maximum Demand for NOVA Consumers with less than twelve (12) months record.

c)      For low voltage Consumers, the maximum capacity limit is 60% of fuse rating (for direct meter) or 60% of current transformer (CT) rating.

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

The NOVA Consumer shall enter into a NOVA Contract with the Distribution Licensee before the Commencement Date. The offset part of electricity bills will be for a period of ten (10) years on commencement of the NOVA Contract. Within the period, the NOVA Consumer is allowed to roll-over any excess Energy generated for every month. After the ten (10) years period, the solar PV installation shall be strictly for self-consumption in the premise where the solar PV installation was installed. The NOVA Contract is deemed to commence on the installation of the meter by the Distribution Licensee

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

There will be no cash transaction under the NEM NOVA. Instead, any excess Energy which is not consumed at the Premise where the PV Installation is located due to operational constraints or monthly or seasonal variation in load demands at the said Premises may be exported through the Supply System under one of the following categories:

 

       Category A

  • Any excess Energy produced in a month which is not consumed by the NOVA Consumer may be exported via the Supply System to the Distribution Licensee.
  • The value of the exported Energy shall be credited to the account of the NOVA Consumer to be used to offset the bill payment for the next Billing Period.
  • The unit price (RM/kWh) of the Energy exported in the Billing Period to the Supply System shall be based on the Average SMP.
  • Only excess Energy exported in the month can be used to offset bill payment for the next Billing Period and any remaining excess Energy shall be forfeited.
  • The value of the credit cannot be used to offset the minimum monthly charge as stated in the tariff schedule.
  • A NOVA Consumer under Category A is as illustrated in Figure 1 below:

       Category B

  • Any excess Energy produced in a month which is not consumed by the NOVA Consumer may be exported via the Supply System up to three (3) Designated Premise.
  • The value of the exported Energy shall be credited to the account of such Designated Premise to be used to offset the bill payment for the next Billing Period.
  • The unit price (RM/kWh) of the Energy exported in the Billing Period to the Supply System shall be based on the Average SMP.
  • Only excess Energy exported in the month can be used to offset bill payment for the next Billing Period and any remaining excess shall be forfeited. The value of the credit cannot be used to offset the minimum monthly charge as stated in the tariff schedule.
  • For the purpose of Category B, a Designated Premise of the NOVA Consumer includes Premise used or operated by its wholly owned subsidiary company.
  • To facilitate the accounting and the settlement, all these Premises shall have the same Billing Period.
  • NOVA Consumer under the Category B is as illustrated in Figure 2 below:

What is System Marginal Price (SMP)? And How SMP is calculated?

System Marginal Price (SMP) is defined in the Guidelines For Single Buyer Market (Peninsular Malaysia) as :

“The price of the most expensive marginal generator included in the Draft Day Ahead Dispatch Schedule to meet the Day Ahead Load Forecast in a Half-Hour Period or the Week Ahead Dispatch schedule to meet the Week Ahead Load Forecast.”

Average SMP – means the monthly average SMP for the daily period between 7:00 hour to 19:00 hour in the preceding calendar month;

Under the NOVA Programme, the credit to the NOVA Consumer shall be based on the Average SMP. The calculation for net offset amount of Energy shall be based on the following calculation and shall not be used to offset the minimum monthly charge as stated in the tariff category of the Distribution Licensee:

Net Energy charge (RM) = (Energy imported from Supply System* x prevailing gazetted Energy rate) – (Energy export to Supply System x Average SMP)

*the Energy imported is subjected to SST, KWTBB, ICPT, where applicable.

The excess export Energy for Designated Premise will be aggregated to the Designated Premise’s accounts based on priority set by NOVA Consumer.

The Single Buyer shall publish the Average SMP of the preceding month on its website no later than the 14th day of every month

Is NEMAS required for NEM NOVA? What are the details?

Under NEM NOVA, the NEM Assesment Study (NEMAS ) is being replaced with Connection Assesment Study (CAS). A Connection Assesment Study (CAS) is required for all applications with solar PV installation with peak capacity exceeding 72kW in order to check the acceptability of the installation to be connected to the Supply System. It is the responsibility of the Applicant to bear the costs of the CAS.

The CAS is a pre-requisite for the approval of application to the NOVA Programme and is required to be conducted prior to the approval of the application. If the result of the study demonstrates the need for any modification to the Supply System for the connection of the solar PV Installation, it is the responsibility of the Applicant to bear all costs of such modification works by the Distribution Licensee or Grid Owner.

The CAS for Low Voltage and Medium Voltage may be conducted or caused to be conducted by the Distribution Licensee or any party endorsed by the Distribution Licensee.The CAS for High Voltage can be conducted or caused to be conducted by the Grid Owner or any party endorsed by the Grid Owner.

The Distribution Licensee shall provide the relevant data of the Supply System to the party appointed by the Applicant to conduct the study subject to execution of a Non-Disclosure Agreement between the party that will carry the study and the Distribution Licensee or the Grid Owner.

The result of the CAS is valid from one (1) year from the date of approval of the study.

The fees for the study is shown below:

Installed Capacity (kW) Study Required Fees of Study
For Installations at Low Voltage (LV) & Medium Voltage (MV)
1 – 72kW No
>72kW – 180kW Yes RM 1,000
>180kW – 425kW Yes RM 5,000
>425kW – 1,000kW Yes RM 8,000
>1,000kW – 2,000kW Yes RM 15,000
>2,000kW – 5,000kW Yes RM 20,000
For Installations at High Voltage (HV) Yes Determined by the consultant

Table 1: Fees for Connection Assesment Study (CAS)

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?

As long as the NEMAS is still valid and there is no change capacity, Applicant will need to obtain an approval letter from the DL confirming the use of the NEMAS for NEM NOVA application. Any change exceed the capacity from the approved NEMAS will need to do a new CAS study.

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;
  • Connection Assesment Study (CAS) Approval and report (For capacity above 72kW)
  • Document proofing site ownership
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Name Telephone Email
TS. EDISHAM MOHD SUKOR 03-8870 5865 Edisham@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