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Frequently Asked Questions

FAQ

1.What is Net Energy Metering (NEM)?

NEM is a mechanism where an eligible consumer installs a solar PV system 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.What is one-on-one offset?

In one-on-one offset, every 1kWh exported to the grid will be offset against 1 kWh consumed from the grid with gazette tariff. The export charges are charged starting from the highest applicable rate.

3.Who is eligible for NEM?

  1. Registered Tenaga Nasional Malaysia (TNB) consumers in Peninsular Malaysia who are not blacklisted (no outstanding bill & meter tampering).
  2. Consumers of these categories:
    • Domestic/Residential
    • Commercial
    • Industrial
    • Agriculture
  3. The electricity resource must be from Solar Photovoltaic (PV) only

4.What types of installation are eligible under NEM?

  • On building rooftop
  • On garage, car park or similar buildings
  • Ground-mounted system may be allowed on case-by-case basis, and the installation must be within the applicant’s premises and approved by the Energy Commission

5.What is the maximum capacity for PV system installation?

  • Domestic or residential: The allowed maximum capacity is 12 kWp for single phase system or 72 kWp for 3 phase system.
  • Commercial, industrial, and agricultural: The allowed maximum capacity of the PV system installed is 75% of maximum demand or 60% of fuse rating or 60% of current transformer rating.

6.How to apply for the NEM?

  • Interested customers must make applications via eNEM system.
  • NEM applicants must appoint SEDA’s Registered PV Service Provider (RPVSP) for NEM application submission.
  • For better understanding, refer to NEM’s Process Flowchart here http://www.seda.gov.my/reportal/nem/

7.What types of meter are required for NEM?

There are 2 types of meter required:
  1. TNB’s bi-directional meter (with import-export feature) to record the amount of electricity consumes, produced, or exported;
  2. PV meter/ data logger/ inverter with monitoring feature to record the total amount of electricity generated by the PV system
  3. *Optional* - Consumers may install check meter for measurement of the energy export (if applicable) and must be equivalent to the standards of the consumer meter installed at the premises by TNB.

8.Can I participate in NEM?

Yes, as long as you are a customer of TNB, you may participate. Ensure that you are a registered TNB customer (your name/ company as appeared in the TNB bill) to participate in NEM.

9.Do I need to apply for NEM if I am planning to install Solar PV system for self-consumption?

No, but for PV system with capacity above 72 kWp, you need to have generation license (private) from ST is and comply with the rules under the Electricity Supply Act (ESA). Refer to the Guidelines on the Connection of Solar Photovoltaic Installation for Self-Consumption issued by ST.

10.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.

11.What are the incentives provided for NEM consumers?

Fiscal incentives are offered to eligible companies in the form of Green Technology Incentive by Malaysia Investment Development Authority (MIDA), available until 2020. Refer here: https://www.mida.gov.my/home/

12.Can consumers cash out the excess power generated each month?

In NEM scheme, no cash will be paid. Excess solar power generated can be rolled over within 24 months from the start of NEM consumer’s billing system.

13.What is NEM Assessment Study (NEMAS)?

NEMAS will study and determine the technical impact to the Distribution Licensee’s electricity distribution network, and establish technical and safety requirements necessary for the installation. The requirement is based on kWp of installation as below:

Installed Capacity Study Required Fee of Study (RM)
1 – 72 kWp No –
72 kWp – 180 kWp Yes 1,000.00
> 180 kWp – 425 kWp Yes 5,000.00
> 425 kWp – 1 MWp Yes 8,000.00

14.Does NEM require ST License?

Yes, under the ST “Guidelines on Licensing Under Section 9 of the Act”, anyone who uses, works or operates the installation requires a license.

Only applicable for solar PV system installation below:

  • above 24kW for single phase; and
  • above 72kW for three phase

15.What information & documents are required 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

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