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NEM 2.0 vs NEM 3.0

With the introduction of NEM 3.0 in December 2020 by Malaysia’s Energy and Natural Resources Minister, the government is pushing through with its solar energy initiatives not only to domestic users but to government ministries, commercial spaces, and industrial usage alike.

But how is NEM 3.0 different from NEM 2.0? Outlined below are the details of NEM 2.0 vs NEM 3.0, specifically on its differences and unifying similarities.

NEM 2.0 vs NEM 3.0: The Differences

Succeeding the first NEM initiative, NEM 2.0 was essentially the earlier iteration of NEM 3.0. In essence, NEM 2.0 in 2019 was the continuation of the NEM initiative of 2016. NEM 2.0 adopted the “one-is-to-one” offset ratio in exporting excess solar energy back to the grid and operated on a 500 MW quota allocation, which attained a full and complete subscription on December 2020.

With the completion of the NEM 2.0 quota allocation — and also for the government to further encourage the uptake of solar/renewable energy resources — the NEM 3.0 was introduced with a fresh round of quota allocation, lasting up to the year 2023.

The most striking difference between NEM 2.0 vs NEM 3.0 is that the latter is further categorized into the following initiatives: NEM Rakyat (for domestic consumers), NEM GoMen (for Government Ministries and Entities), and NEM Nova (or Net Offset Virtual Aggregation). Previously, the NEM 2.0 iteration did not offer the aforementioned three categories as options.

NEM 2.0 vs NEM 3.0: The Similarities

With both NEM 2.0 and NEM 3.0 as offshoots of the same initiatives, they are more or less similar, except for their date of introduction/full subscription and the fact that NEM 3.0 is further divided into various categories.

Both NEM 2.0 and NEM 3.0 are given 500 MW quota allocations, for example. Furthermore, these two NEM initiatives, while possessing different components, are being upheld to encourage the use of solar power as a renewable energy source all over the country.

For its execution, it is being managed by the KeTSA (Ministry of Energy and Natural Resources). As for its monitoring and regulation, moreover, it is under the care of the Energy Commission (EC), with the Sustainable Energy Development Authority (SEDA) Malaysia as its implementing agency.



NEM Rakyat

Quota Balance: 90.89MW
Quota Taken 9.11MW



Quota Balance: 87.23MW
Quota Taken 12.77MW



Quota Balance: 77.42MW
Quota Taken 222.58MW

Quota Allocation

NEM 3.0 Initiative/programmeNEM RakyatNEM GoMEnNOVA
Year2021 – 2023
Total, MWac100100300
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