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NEM FAQs
General NEM FAQs
1. What do I need to know about Net Energy Metering or NEM 3.0?
The Net Energy Metering initiative is a project of the government, introduced primarily to encourage energy users and consumers to install solar photovoltaic PV systems in their homes and premises, thus effectively reducing their respective energy bills.
Under the most recent NEM iteration, which is NEM 3.0, the initiative is further classified into three categories, namely, NEM Rakyat, NEM GoMEn (Government Ministries and Entities), and NEM NOVA (Net Offset Virtual Aggregation).
2. What are the features of the NEM 3.0, such as date of implementation and quota allocation?
Under the various classifications or categories of NEM 3.0, different implementation guidelines and quotas are applicable:
- NEM Rakyat: February 1, 2021, to December 31, 2023 (100 MW quota allocation)
- NEM GoMEn: February 1, 2021, to December 31, 2023 (100 MW quota allocation)
- NEM Nova: April 1, 2021, to December 31, 2023 (300 MW quota allocation)
3. How do I apply for NEM 3.0?
For all NEM 3.0 categories (NEM Rakyat, NEM GoMEn, and NEM NOVA), applications may be done through the eNEM system of SEDA at https://services.seda.gov.my/nem/home.
For the NEM application’s submission, anyone applying for NEM will have to appoint a Registered PV Service Provider (RPVSP) from SEDA at http://www.seda.gov.my/directory/registered-pv-service-provider-directory/.
4. Once approval is obtained, when can I start with the PV installation?
It is required for applicants to proceed with the installation of solar PV installations within 3 months beginning the time that the NEM application has been approved. Otherwise, approval will be revoked and any fees paid will not be subject to refund.
5. As a NEM consumer, what incentives can I expect from the NEM initiative?
Fiscal incentives may be availed of by qualified companies, especially through the “Green Technology Incentive” of Malaysia Investment Development Authority (MIDA). Guidelines and application forms may be perused further here: https://www.mida.gov.my/forms-and-guidelines/tax-incentives-for-green-industry/
6. Is there a specific meter required for NEM 3.0 (NEM Rakyat, NEM GoMEn, and NEM Nova)?
The required meter types are the following:
- Bi-directional Meter – This meter will be installed by the Distribution Licensee. It is useful in measuring the supply of electricity from the Distribution Licensee to the NOVA Consumer, as well as the exported energy from the NOVA consumer to the Supply System.
- PV Meter – This meter will be installed, as well as managed, by the NOVA consumer. It is valuable in calculating the energy produced by the installed solar PV system.
7. Does the Energy Commission have a list of qualified electrical professionals I can hire?
Yes. The list is available at the website of the Energy Commission: (https://ecos.st.gov.my/ms/senarai-orang-kompeten-berdaftar-elektrik-)
NEM Rakyat and GoMEn:
1. How do I know if I qualify for NEM Rakyat or NEM GoMEn?
The following individuals or entities may qualify for NEM Rakyat or NEM GoMEn:
- A registered consumer of Tenaga Nasional Malaysia (TNB) or anyone applying to be a consumer at TNB.
- Any applicant with no existing solar PV installation with the previous solar PV initiative.
- Any applicant that satisfies the following requirements:
NEM Rakyat (Domestic tariff)
A domestic consumer whose private home or residential premises is not being used as a boarding house or hotel, or for the purpose of performing any kind of business, trade, or for the rendering of any professional service.
NEM GoMEn (Commercial tariff)
Any government-established ministry, statutory body, or department operating and carrying out administrative duties, from the district and state levels to federal levels as well as local authorities.
2. What are the eligible installation types for NEM Rakyat or NEM GoMEn?
The recommended installation for a solar PV system is one that’s roof-mounted within the same premises registered for the NEM Programme.
3. Is there a maximum capacity or limit for each application? What are the limits?
Different maximum capacity limits apply to different categories of the NEM 3.0 Programme. Depending on whether you’re registered for NEM Rakyat or NEM GoMEn, the capacity limits are as follow:
NEM Rakyat
(Maximum Capacity Limits)
Single-phase: no more than 4kW
Three-phase: no more than 10 kW
NEM GoMEn
(Maximum Capacity Limits)
For NEM GoMEn, the maximum capacity limits of the installed solar PV system are at 1,000 kW
with the following terms:
- No more than 75% of maximum demand for medium-voltage subscribers, with the following basis:
- The past year’s recorded average maximum demand
- Declared maximum demand for consumers whose records are less than a year
- No more than 60% direct meter fuse rating for low-voltage subscribers, or 60% of CIT rating or current transformer rating of the metering current transformers.
4. Will the excess energy generated each month be available for cash-out?
No, there isn’t any cash-out arrangement existing within the NEM Rakyat and NEM GoMEn categories of the NEM 3.0 initiative. Any excess energy generated, however, may be available for Distribution System export. Any credit arising from such excess energy will be valid for an offsetting arrangement, with the portion of the electricity bill offset for the corresponding TNB billing period. This net crediting setup is being permitted only for a maximum term of 12 months; any excess energy generated after such period will be forfeited.
5. Is NEMAS a requirement for NEM NOVA applicants?
The NEMAS was initiated as a study useful for identifying NEM’s technical consequence to the electricity distribution network of TNB and, just as importantly, to determine which safety and technical requirements are applicable prior to, during, and after installation.
It is required for a NEM consumer planning to install a system capacity of more than 72 kW to connect with TNB or with any entity legitimately partnered with the Energy Commission for the NEMAS conduction.
Specific requirements and fees apply per capacity. See below for corresponding details:
| Capacity of installation(in kW)</strong | NEMAS required? | TNB fees |
|---|---|---|
| 425 – mW | Yes | RM 8,000 |
| 180 kW – 425 kW | Yes | RM 5,000 |
| 72 kW – 180 kW | Yes | RM 1,000 |
| 1 kW – 72 kW | No | N/A |
6. What are the information and documentary requirements upon application for NEM?
The following specific information and documents are being required for a NEM application:
Information:
- Applicant’s Profile
- Project Information
- Technical Information
- Proposed Work Plan
Documents:
- Engineering Design, signed and endorsed by a relevant professional
- Most recent electricity bill (last 3 months), or a TNB invoice
- For above72kW capacities, a NEMAS approval and report
- Document proof of site ownership
NEM Nova
1. What do I need to know about NEM Nova?
NEM NOVA is one of the categories of NEM 3.0. It is an acronym for Net Offset Virtual Aggregation.
The NOVA initiative works on the premise that any energy produced via an installed solar PV system within the premises of a NOVA consumer or subscriber should be utilised principally for self-consumption.
In the event of excess energy not utilised at the location premises of the solar PV installation, this may be exported or distributed under the Supply System through either of the following options/categories:
Category A
Unconsumed, excess energy produced within a month by the NOVA subscriber or consumer may be exported to the Distribution Licensee through the supply system. The corresponding value of the excess energy will be added to the consumer’s account for bill-offsetting during the succeeding billing period.
Category B
Unconsumed, excess energy produced within a given month by a NOVA subscriber may be exported up to a maximum of 3 designated premises through the supply system. The corresponding value of the excess energy will be added to the designated premises’ account for bill offsetting during the succeeding billing period.
2. Which installation types are eligible for a NEM NOVA application?
The eligible or recommended installation type for NEM NOVA is a roof-mounted installation on the buildings situated within the designated premises.
3. Is there a maximum capacity limit for the NOVA application? If yes, how much?
For each of the applicable category, the corresponding maximum capacity of the installed solar PV system will be based on the Nova consumer or subscriber’s Maximum Demand.
Category A
Any NOVA consumer classified under this category (Category A) is not expected to install beyond 1,000 kW for net offset. Furthermore, the following conditions apply:
- The solar PV installation’s inverter output shall operate at a maximum capacity of 75% of Maximum Demand as stated in the contract of the NOVA consumer or subscriber.
- The basis for the NOVA consumer’s Maximum Demand is as follows:
- reflected average of Maximum Demand recorded for the previous 12 months;
- Or, for NOVA Consumers with fewer than 12 months reflected on record, the acknowledged Maximum Demand will apply.
- The following limits are applicable for low-voltage consumers:
- Direct meter: maximum fuse rating of 60%
- or, 60% current transformer (CT) rating
Category B
Any NOVA consumer classified under this category (Category B) is not expected to install beyond 5,000 kW for net offset and virtual aggregation. Furthermore, the following conditions apply:
- The solar PV installation’s inverter output shall operate at a maximum capacity of 100% of Maximum Demand as stated in the contract of the NOVA consumer or subscriber.
- The basis for the NOVA consumer’s Maximum Demand is as follows:
- reflected average of Maximum Demand recorded for the previous 12 months;
- or, for NOVA Consumers with fewer than 12 months reflected on record, the acknowledged Maximum Demand will apply.
- The following limits are applicable for low-voltage consumers:
- Direct meter: maximum fuse rating of 60%
- or, 60% current transformer (CT) rating
4. Will the excess energy generated each month be available for cash-out?
The NEM NOVA will have no cash-out arrangements, especially for excess energy generated but not consumed within the solar installation location. Unconsumed excess energy often points out to operational limitations as well as load demand shifts from season to season. Nevertheless, excess energy may be transported via the Supply System according to specifications per category. Check the SEDA website here for more useful information: http://www.seda.gov.my/reportal/nem/
5. How is the System Marginal Price (SMP) calculated?
The Guidelines for Single Buyer Market (Peninsular Malaysia) defines System Marginal Price or SMP 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.”
To calculate the average SMP, this will require looking into the monthly average of daily periods in the earlier calendar month between the hours of 7:00 and 19:00. This average SMP will form the basis for the offset credit to the NOVA consumer.
The illustrated calculation for net offset energy amount will prevail, instead of basing it on the minimum monthly fee as classified under the Distribution Licensee’s tariff category:
Net Energy charge (RM) = (Energy imported from Supply System* x prevailing gazetted energy rate) – (Energy export to Supply System x Average SMP)
*where relevant, imported energy is subject to ICPT, SST, KWTBB
According to the NOVA Consumer’s priority set, excess energy from the Designated Premise will be exported and added to the specific accounts of the Designated Premise.
6. What are the information and documentary requirements upon application for NEM?
The following information and documents serve as NEM application requirements:
Information:
- Applicant’s Profile
- Project Information
- Technical Information
- Proposed Work Plan
Documents:
- Engineering Design, signed and endorsed by a relevant professional
- Most recent electricity bill (last 3 months), or a TNB invoice
- For above 72kW capacities, a CAS (Connection Assessment Study) approval and report
- Document proof of site ownership
