NEM 3.0: WHAT YOU NEED TO KNOW ABOUT NEM 3.0

The newest Net Energy Metering 3.0 programme (NEM 3.0) was finally introduced by KeTSA (Kementerian Tenaga dan Summer Asli) on 29th December 2020. It aims to provide huge opportunities for consumers to save electricity by installing solar PV systems on the roofs of their properties. The NEM 3.0 will be in effect from 2021 to 2023 with a total quota allocation of up to 500 MW. It will be divided into three (3) new initiatives/categories :-

Program NEM Rakyat

With NEM Rakyat Programme, Residential Consumer(s) who own a solar PV installation on the roof-top of their premises will be given a special quota allocation of 100MW and will be able to consume the energy produced first, and any excess will be exported to the TNB grid. Furthermore, the balance credit to be received as excess energy will be used to offset part of the electricity bill on a “one-on-one” offset basis for a period of ten (10) years of operation. Consumers will enjoy a great amount of benefits from the NEM Rakyat programme. The most crucial one is ofcourse saving electricity, especially for those who fall under the high electricity tariff block. Any excess energy generated will be exported to the utility grid and will be paid on a “one-on-one” offset basis. The energy generated by NEM consumers will be consumed first which suggests that less energy will be imported from the Distribution Licensee (DL). For complete NEM Rakyat Guideline, please feel free to download here.

Program NEM GoMEn (Government Ministries and Entities)

Similar to NEM Rakyat, the prime concept of NEM GoMEn is to cater government premises with solar benefits. They will also be given a special quota allocation of 100MW and will be able to consume the energy produced first with any excess will be exported to the TNB grid. Hence, for a period of ten (10) years of operation, the balance credit to be received as excess energy will be used to offset part of the electricity bill on a “one-on-one” offset basis. Government premises will benefit a lot from NEM GoMEn programme such as may have excess energy exported to the grid and the credit to be received as excess energy will be used to offset part of the electricity bill on a “one-on-one” offset basis, thus saving electricity bills as most would not operating during the weekends or public holidays. Under Section 9 of the Electricity Supply Act, license is required for any person to use, work, operate, permit to be used, worked or operated any solar PV installation that is above 72kWp for three phase system and above 24kWp for single phase system. For complete NEM GoMEn Guideline, please feel free to download here.

Program NEM NOVA (Net Offset Virtual Aggregation)

The NEM NOVA (Net Offset Virtual Aggregation) Programme is considerably the latest program announced, especially catered for commercial and industrial premises when dealing with solar installation. The programme is up for application from 1st April 2021 to 31st December 2023 on a first-come-first-served basis. NEM NOVA grants consumers to install solar PV systems for self-consumption in their own residentials and specifically made for self-consumption. Excess energy that is not used at the PV installed premise can be exported through the supply system under two categories: Category AAny energy generated in a month that is not consumed by the consumers may be exported to the distribution licensee through the supply system. The exported energy will be credited to the consumer's account and used to offset against the next billing period payment.Category BAll energy generated in a month that is not consumed by the consumers may be exported up to 3 designated premises through the supply system. The exported energy will be transferred to the account of such designated premises and offset against the next billing period payment.The energy generated by NOVA consumers will be consumed first which suggests that less energy will be imported from the utility, and any excess energy generated will be exported to the utility grid and will be credited based on the Average SMP. As some premises are not operating during the weekends or public holidays, they may have excess energy exported to the grid. The credit amount in the month can be used to offset bill payment for the next billing period, any excess energy produced in a month which is not consumed by the NOVA consumer to be exported up to three designated premise through the supply system which will enhance the cost efficiency and maximizing the use of energy produced by the solar PV installation. For complete NEM NOVA Guideline, please feel free to download here.