Introducing NEM 3.0: Malaysia’s Next Step Towards Solar Energy Adoption

The Net Energy Metering (NEM) Scheme, a solar incentive developed by Malaysia's Ministry of Energy, Science, Technology, Environment, and Climate Change (MESTECC), is gaining momentum as the country pushes forward with its renewable energy goals. Regulated by the Energy Commission (EC) and implemented by the Sustainable Energy Development Authority (SEDA), this initiative has been pivotal in boosting solar energy adoption across various sectors in Malaysia.

The NEM Scheme, first introduced in 2016, saw slow adoption in its early years. However, by 2019, it began to gain significant traction, culminating in the NEM 2.0 program, which saw its entire 500MW allocation snapped up by sectors such as residential, commercial, industrial, and agriculture by November 2020. Following this success, the Malaysian government launched NEM 3.0 in 2021, with an allocation of 100MW available through 2023, aimed at continuing the momentum for solar energy adoption in the country .

What is NEM 3.0?

The NEM 3.0 initiative is designed to offer more diverse options for energy consumers, ranging from homeowners to large businesses and government entities. It features three key programs to cater to different sectors: Rakyat Program, NEM GoMEn, and NOVA Program.

1. Rakyat Program: Empowering Homeowners

The Rakyat Program under NEM 3.0 targets residential customers, allowing homeowners to significantly reduce their electricity bills by generating their own power through solar photovoltaic (PV) systems. The energy offset is set at a 1:1 ratio, meaning that every unit of energy generated offsets one unit consumed from the grid. Homeowners can roll over any excess energy for up to 12 months, and the maximum system size allowed is 4kWac for single-phase homes and 10kWac for three-phase homes .

2. NEM GoMEn: Reducing Government Energy Bills

For government ministries and entities, the NEM GoMEn Program offers an opportunity to lower energy costs by utilizing solar PV systems. This program also provides a 1:1 energy offset ratio with a 12-month roll-over for excess energy. Government buildings can install solar systems up to 1MWac per account, ensuring a significant reduction in electricity costs .

3. NOVA Program: Benefitting Businesses

The NOVA Program, aimed at commercial and industrial sectors, offers even greater flexibility. Businesses can not only consume the energy they generate but also sell excess energy back to the grid at the System Marginal Price (SMP) or market rate. The credits earned from selling excess electricity are reflected in the next month’s electricity bill. Additionally, the NOVA Program allows businesses to offset excess energy through virtual aggregation, enabling the distribution of surplus energy across up to three different electricity accounts under the same business name .

The Future of Solar Energy in Malaysia

NEM 3.0’s diverse offerings promise to extend the benefits of solar energy adoption to more sectors, fostering a more sustainable and cost-effective energy landscape in Malaysia. With initiatives tailored to homeowners, government entities, and businesses, NEM 3.0 is expected to further accelerate Malaysia’s transition towards a greener and more energy-efficient future .

Source: BuySolar