The Ministry of Energy and Natural Resources has, on 29 December 2020, announced details of the new Net Energy Metering Programme 3.0 (“NEM 3.0”) as a successor to the Net Energy Metering Programme 2.0 (“NEM 2.0”) which quota of 500MW was fully subscribed on 27 November 2020. Enhancements to the existing NEM 2.0 were also detailed in the announcement.

Briefly, the NEM is a mechanism which allows electricity consumers in Peninsular Malaysia to sell excess electricity generated from their solar PV systems back to the grid. This scheme is applicable to all consumers in the domestic, commercial and industrial sectors who are customers of Tenaga Nasional Berhad (“TNB”). In addition to allowing consumers to utilise energy generated by the solar PV system thus importing less energy from the grid and saving on electricity bills, consumers are also able to export excess electricity back to the grid for credit to reduce their electricity bills even further.