To boost solar energy usage and reduce energy cost, the Energy and Natural Resources Ministry (KeTSA) announced on Dec 29, 2020, the NEM 3.0, which will be in effect from 2021 to 2023.
NEM 3.0 will offer 500MW quota within the next three years for residential, commercial and industrial energy users.
KeTSA Minister Datuk Dr Shamsul Anuar Nasarah said the new scheme has three initiatives: People NEM Programme, New GoMEn Programme and Programme NOVA.
People NEM Programme
Under the People NEM Programme, the scheme will offer a “one-on-one” offset mechanism which allows every kilowatt (kWh) exported to the grid to offset against each kWh consumed from the grid.
It means every kWh generated will return and translate to higher potential earnings to the users.
“Residential users who installed photovoltaic (PV) systems will enjoy an offset rate of “one-to-one” for 10 years, and they will practice the concept of self-consumption after the 10-year period ends.”
Self-consumption applies when electricity is generated for its own usage, and any excess is not allowed to be exported to the grid.
About 10,000 to 25,000 TNB domestic account holders or between 40,000 to 100,000 households in Peninsular Malaysia will enjoy electricity bill reduction under this programme.
“Quota applications for this programme can be made to the Sustainable Energy Development Authority (Seda) beginning Feb 1, 2021, until Dec 31, 2023.”
New GoMEn Programme
For the New GoMEn programme (Government Ministries and Entities), the ministry said PV systems, installed at government buildings, will implement the concept of “one-to-one” offset rate for 10 years and they too will practice the self-consumption concept after the 10-year period ends.
About 100 government agencies in Peninsular Malaysia will enjoy reducing electricity bills amounting to RM6mil a month, said Shamsul.
“Quota applications for this programme can be made to the Seda beginning Feb 1, 2021, until Dec 31, 2023.”
Meanwhile, to assist commercial and industrial electricity users affected by the Covid-19 pandemic, Shamsul said Programme NOVA (Net Offset Virtual Aggregation) will assist entrepreneurs and local companies in reducing electricity bills and the cost of doing business.
According to Shamsul, users under this category will be able to sell extra electrical energy generated by the PV solar system at a market price or a system marginal price (SMP) as an energy credit in the following month’s electricity bill.
Under this category, users will also be able to offset extra electrical energy through “virtual aggregation” for up to three electricity bills under the same owner.
“Quota applications for Programme NOVA can be made to Seda beginning Feb 1, 2021, until Dec 31, 2023, or until all quotas were distributed.
“Details of this programme will be announced before applications are opened.”
“The government hopes that the implementation of NEM3.0 will enable more Malaysians, government agencies, companies and local entrepreneurs to be involved in the agenda of the country’s latest energy development aside from reducing electricity bills to reduce the impact of Covid-19,” Shamsul added.
Nett Energy Metering 3.0 Implementation Mechanism NEM 3.0
|Programmes||People NEM Domestic||New GoMEn NOVA Government Buildings||NOVA Commercial & Industrial|
|Offered Quota (MW) 1||100||100||300|
|Mechanism (roll-over)||NEM 1:1 (12 months)||SELCO+ (1 month)|
|Offer Date||Feb 1, 2021||Apr 1, 2021|
|Offer Duration||3 years|
|Offset rate||Current Tariffs||System Marginal Price|
|Offset period||10 years|
|After 10 years||Self-Consumption (SelCo)|
|Installation Capacity Limit||Single Phase: 4kWac
Three Phase: 10kWac
|1MWac/1 Account||Nett offset: 1MWac
Nett offset + Virtual aggregation: 5MWac
|Qualifications||Domestic Account Holders||Government Departments/ Agencies||Non-domestic Account Holders|