Net Energy Metering - Malaysia’s sustainable energy solution

As concerns regarding climate change and the need for sustainable energy sources increase, solar power development has gained significant traction. This renewable energy source harnesses power from the sun to generate electricity, reducing carbon emissions and dependence on fossil fuels.

In case you haven't heard, the Malaysian government has taken a major step towards promoting renewable energy uptake with the introduction of the Net Energy Metering (NEM). This scheme aims to encourage the adoption of renewable energy across Malaysia.

If you're unfamiliar with the concept of NEM in Malaysia, rest assured as it's quite straightforward!

Understanding Net Energy Metering Malaysia

NEM allows consumers to generate their own electricity through renewable energy systems such as solar panels and sell any excess energy back to the grid. It operates on a "one-on-one" offset basis, where the excess energy exported to the grid is offset against energy consumed from the grid. This allows consumers to save money while being environmentally conscious.

The transition from NEM 2.0 to NEM 3.0 marked significant advancements in the scheme. One of the key changes is the increase in quota allocation from 200 MW to 500 MW. This expansion reflects the government's commitment to accelerating Malaysia's renewable energy uptake.

Additionally, NEM 3.0 also expanded the eligibility of the scheme. While NEM 2.0 was primarily focused on residential and commercial customers, NEM 3.0 extended its reach to include industrial customers as well. This means that all domestic, commercial and industrial customers of TNB can now participate in NEM, making it more accessible and inclusive. 

NEM 3.0 also introduced the concept of “solar leasing”. This incentive allows consumers to enter into agreements with solar leasing companies or providers, enabling them to install and enjoy the benefits of solar panels without the need to pay the upfront costs of purchasing the system.

NEM 3.0 is divided into three new categories which are: NEM Rakyat Programme, NEM GoMEn Programme (Government Ministries and Entities), and NOVA Programme (Net Offset Virtual Aggregation). These initiatives diversify the reach of NEM 3.0 and ensure a comprehensive approach to sustainable energy solutions in Malaysia.

To assist consumers in estimating their potential savings and benefits under the NEM scheme, the development of a savings calculator, also known as the NEM calculator, has been a valuable tool. This calculator takes into account factors such as tariff group, building type, average monthly electricity consumption, solar panel capacity and other relevant parameters. By utilising the NEM calculator, consumers can make informed decisions about the potential advantages and environmental implications of implementing NEM.

Benefits of NEM in Malaysia

Malaysia’s NEM offers numerous benefits for consumers, the energy sector and the environment. Some key advantages include:

I. Cost Savings: By offsetting their energy consumption with self-generated renewable energy, consumers can effectively lower their electricity expenses over time.

II. Generate Revenue: With NEM, consumers have the opportunity to sell excess energy back to the grid. This not only helps recover the initial investment in renewable energy systems but also provides a potential revenue stream.

III. Environmental Sustainability: The increased deployment of solar panels through NEM helps mitigate the impact of climate change and reduces the reliance on fossil fuel resources.

IV. Economic Growth and Job Creation: The implementation of NEM in Malaysia stimulates the renewable energy sector, driving economic growth and job creation. The installation, maintenance and development of renewable energy systems create employment opportunities and support the growth of a green economy.

Leading the way to sustainable energy with GSPARX

GSPARX, a leading provider of renewable energy solutions in Malaysia is at the forefront of the government's sustainable energy initiative, playing a pivotal role in driving its success.

The company specialises in the installation and maintenance of solar PV systems, offering tailored solutions that cater to each consumer's unique energy requirements. Moreover, GSPARX provides comprehensive energy consulting services, guiding consumers with NEM and optimising system sizing and financial feasibility.

With their expertise and unwavering support, GSPARX enables consumers to seamlessly embrace NEM and actively contribute to a greener, more sustainable future for Malaysia.

To learn more about how you can transition to sustainable energy practices, click here.