The Net Energy Metering (NEM) scheme is transforming Malaysia’s energy landscape by enabling consumers to generate their own electricity and contribute to the national grid. Under the initiative, participants with solar photovoltaic (PV) systems can offset their energy costs and receive credits for surplus electricity supplied to the Tenaga Nasional Bhd (TNB) grid.
This government-led initiative, launched in 2021, aims to encourage the adoption of renewable energy and reduce dependency on fossil fuels, promoting a greener and more sustainable future.
Empowering Households to Embrace Renewable Energy
By installing solar PV systems, consumers can significantly lower their electricity bills and contribute to environmental sustainability. Surplus energy generated by these systems is returned to the TNB grid and converted into energy credits at regulated rates, incentivizing both savings and clean energy production.
The NEM scheme is divided into three categories, targeting different sectors:
- NEM Rakyat: Allocated 400MW for residential users.
- NEM GoMEn: Reserved 100MW for government premises.
- NEM NOVA: Allocated 1,100MW for commercial and industrial consumers.
Incentives to Drive Solar Uptake
In support of the NEM Rakyat initiative, the government introduced the Solar for Rakyat Incentive Scheme (SolaRIS), which offers rebates to encourage residential solar PV adoption. The scheme, led by the Ministry of Energy Transition and Natural Resources, provides rebates of RM1,000 per kilowatt alternating current (kWac), up to RM4,000, to offset installation costs.
The SolaRIS programme, which began on April 1, 2023, will run until March 31, 2024, or until the rebate quota is exhausted. This initiative aims to make solar energy more accessible for households while aligning with Malaysia’s broader energy transition goals.
Soaring Demand for Solar Energy
Public response to the NEM scheme has been overwhelmingly positive, with the SolaRIS incentive further boosting adoption rates. Deputy Prime Minister and Energy Minister Fadillah Yusof recently noted a sharp rise in daily applications—from 100 to 150—since the launch of SolaRIS.
“This uptick in residential solar installations will contribute to the expansion of renewable energy capacity, consistent with the objectives of the National Energy Transition Roadmap (NETR),” he remarked.
Eligibility and Application Process
Households in Peninsular Malaysia wishing to participate in NEM Rakyat must meet specific eligibility criteria:
- Applicants must hold a valid TNB account.
- Premises must be privately owned and not used for commercial purposes, such as hotels or hostels.
- Participants should not be involved in other solar PV programmes.
Technical factors, including energy demand, system size, and PV type, must also be considered before installation.
Solar PV systems can last up to 25 years, with participants seeing potential savings of up to 80% on electricity bills within four to six years.
Application Platforms
Interested consumers can apply for the NEM scheme via the eNEM portal on the Sustainable Energy Development Authority (SEDA) website (www.seda.gov.my). Rebate applications under SolaRIS are processed through TNB after system installation.
The NEM initiative represents a pivotal step in Malaysia’s journey toward renewable energy, empowering citizens to reduce energy costs while playing an active role in the nation’s transition to a sustainable future.