NEM Overview

The Malaysian government has implemented its net metering scheme for the country, which started in 2017. The scheme was first announced in 2016 by the Minister of Energy, Green Technology and Water, Datuk Seri Maximus Ongkil.

The 500 MW NEM will be divided into 100 MW blocks for each year until 2020 in Peninsular Malaysia and Sabah. Currently, Malaysia works on a system of feed-in-tariff (FiT) under which consumers can sell excess power back to the national grid. The FiT was launched for a period of five years in 2012 and will come to an end in 2017.

With the NEM in place, solar users can generate their own electricity with a solar panel net metering in their homes and sell excess power to power grids in Malaysia. The government had earlier announced that it is thinking of putting a cap on the scheme.

The CEO of the Sustainable Energy Development Authority (SEDA), Dr. Ali Askar Sher Mohamad said that some measures might be needed in a situation where there is strong demand from consumers and also to ensure that the tnb net metering would not face any challenges.

Local newspaper The Malaysian Reserve published that the proposed cumulative PV capacities targeted in the Malaysia Solar PV Roadmap until 2030 are 1,356 MW by 2020, increase to 6,393 MW by 2025 and by 2030, it is planned to go up to 17,075 MW.
That would equal 1.03% of total national electricity generation in 2020, 4.41% in 2025 and 11.4% in 2030.

According to Dr. Ali Askar Sher Mohamad, β€œNEM is applicable to industrial, commercial and domestic sectors as long as they implement the SEDA net metering wisely. He also said that One of the primary benefits of net metering is that when a customer’s home requires less electricity, like when everyone is at work or school, the system may still produce electricity. When the system is connected to the grid, that electricity is being put back into the grid.”