1. What is new Net Energy Metering (NEM) (effective 1st Jan 2019)?
A mechanism where an eligible consumer installs a solar PV system primarily for his own use and the excess of energy (kWh) to be exported to the grid and to be offset against kWh from the energy provided by the Distribution Licensee (TNB) to the electricity consumer during the applicable billing period.
2. When will the new NEM commence (where there is no difference in sale and purchase price of electricity)?
The new NEM mechanism will commence on 1st Jan 2019 and applicable to all existing NEM consumers.
3. What is one-on-one offset?
One-on-one offset means every 1kWh exported to the grid will be offset against 1 kWh consumed from the grid with gazetted tariff. The export charges are charged in decending order (start from the highest applicable rate).
4. Who can apply for NEM?
Registered consumers of Tenaga Nasional Malaysia (TNB) in Peninsular Malaysia.
Domestic/Residential (Kediaman)
Commercial (Komersial) [inclusive of government buildings]
Industrial (Perindustrian)
Agriculture (Pertanian) Effective from 1st January 2019
5. What types of installation are eligible under NEM?
Installation types:
on garage, car park or similar buildings
6. How can I apply for the NEM?
Applications can be made via eNEM system. NEM applicant shall appoint SEDA’s Registered PV Service Provider (RPVSP) for NEM application submission. For a better understanding, please refer to NEM’s Process Flowchart at “Net Metering” >> “NEM Workflow” tab.
The detailed guideline/ information will be ready on 22nd Nov 2018. There will be a tri-partied agreement between the three parties (Customers Solar Investor/Lessor and TNB). TNB will provide the service of billing, collection and remittance of the payment by customer to solar investor/lessor and in return, TNB imposes a small service charge. The business models supported by SARE includes solar leasing, PPA or a hybrid of both.
8. What is the maximum duration allowed from application to proposed NEMCD?
12 months from the date of NEM is approved until the date of proposed NEM contract with TNB, failing which the quota allocated will be refused and offered back to other potential NEM applicants.
9. What types of meter are required for NEM?
2 types of meter are required as below:
TNB’s bi-directional meter (with import-export feature) to record the amount of electricity consumed, produced or exported;
PV meter/data logger/inverter with monitoring feature to record the total amount of electricity generated by the PV system.
Optional – May install check meter for measurement of the energy export (if applicable) and shall be of the same or equivalent to the standards of the consumer meter installed at the premises by TNB;
10. Am I eligible to participate in NEM?
Yes, as long as you are a customer of TNB. The basis is always your electricity bill. Please ensure you are a registered customer of TNB (your name/ company as appeared in the TNB bill), only then you are eligible to participate in NEM.
11. If I plan or have installed Solar PV system for self-consumption (SELCO) and have taken the necessary steps to ensure no reverse flow or energy exported to the grid, do I need to apply for NEM?
No, but for PV system with capacity above 72 kWp, generation license (private) from ST is required and subject to complying with the relevant rules under the Electricity Supply Act (ESA). For more information please refer to the Guidelines on the Connection of Solar Photovoltaic Installation for Self-Consumption issued by ST.
12. Is a non-local / 100% foreign company eligible to participate in NEM?
Yes, as long as the company is a customer of TNB.
13. How is the connection between the consumer's solar PV system and the DL distribution system?
The connection to the TNB network shall be done only through indirect connection, i.e. within the owner’s internal distribution board only.
14. What types of incentives are available for NEM consumers?
At the moment there are fiscal incentives offered to eligible companies in the form of Green Technology Incentive by Malaysia Investment Development Authority (MIDA), available until 2020.
http://www.mida.gov.my/home/tax-incentives-for-green-industry/posts/
There is no tenure period between the new NEM and old NEM. The NEM contract shall remain in effect unless otherwise terminated by either party or cancellation of the main electricity contract.
16. Will the owner be able to cash out for excess of power generated each month or just get credit for next month use?
Any excess of solar power generated is allowed to roll over within 24 months from the start of NEM consumer’s billing system. No cash will be paid in the NEM scheme.
17. I saw the 'solar leasing' was introduced during IGEM 2018. May I know the capital for installation is provided by company (service provider) or government grant?
The capital for installation will be provided by Investor. Please check the term and condition directly with them.
18. I saw the 'solar leasing' was introduced during IGEM 2018. May I know the capital for installation is provided by company (service provider) or government grant?
The study will determine the technical impact to the Distribution Licensee’s electricity distribution network and establish technical and safety requirements that may be necessary for the installation.
The requirement is based on kWp of installation as below :
19. What are the required information & documents for NEM application?
Information :
- Applicant’s Profile
- Project information
- Technical information
- Proposed work plan
Documents :
- Single Line Diagram (SLD) endorsed by Competent Person;
- Latest electricity bill
- Load Profile Report
- NEMAS or PSS Report
- Document proofing site ownership