he Government has introduced the Net Energy Metering Scheme in November 2016 with a quota allocation of 500 MW up to the year 2020 to encourage Malaysia’s Renewable Energy (RE) uptake. The concept of NEM is that the energy produced from the solar PV installation will be consumed first, and any excess will be exported to TNB at the prevailing displaced cost.

 To encourage NEM uptake, the NEM 2.0 was introduced on 1st January 2019, and the true net energy metering concept was adopted, allowing excess solar PV generated energy to be exported back to the grid on a “one-on-one” offset basis. The NEM scheme was executed by the Ministry of Energy and Natural Resources (KeTSA), regulated by the Energy Commission (EC), with Sustainable Energy Development Authority (SEDA) Malaysia as the Implementing Agency (IA). The 500MW quota under the NEM 2.0 has been fully subscribed by 31st December 2020.

 Due to the overwhelming response from the PV industry and to boost the usage of Solar energy, the Energy and Natural Resources Minister, via a press statement by KeTSA on 29th December 2020, has introduced the new Net Energy Metering 3.0 programme (NEM 3.0) to provide more opportunities to electricity consumers to install solar PV systems on the roofs of their premises to save on their electricity bill.

 According to the media statement released by the YAB Ministry of Energy Transition and Water Transformation (PETRA) on 26^th January 2024, the NEM 3.0 program will continue with an additional quota offer of 100MW for NEM Rakyat and 300MW for NOVA. The NEM 3.0 quota offer period will run until December 2024 or until all quotas are allocated, whichever comes first. The NEM 3.0 will be in effect from 2021 to 2024, and the total quota allocation is up to 1450 MW. The NEM 3.0 will be divided into the following three (3) new initiatives/categories:-