NEM Guidelines

The government of Malaysia, through the EC, has issued guidelines in 2016 for the purpose of implementing the Net Energy Metering (NEM) scheme, in line with the EC’s function to promote RE. The following are a few key clarifications as provided under the guidelines:

Source of energy
Different from the FiT mechanism, the Net Energy Metering (NEM) is strictly for RE generated from solar PV resources. However, other RE resources may be allowed on a case-by-case basis.

Target capacity
The Net Energy Metering (NEM) programme is of 500MW capacity for a period between November 1, 2016 until 2020 with 100MW capacity limit a year for peninsular Malaysia, and another 100MW for the state of Sabah and the Federal Territory of Labuan.

Eligibility to participate
The Malaysia Net Energy Metering (NEM) programme is available to all residential, commercial (including government buildings) and industrial sectors.

Types of installation
Generally, the Net Energy Metering (NEM) mechanism will only allow excess energy from the rooftops of buildings, garages and car parks to be exported to the national grid. However, on a case-by-case basis, any ground mounted systems may also be allowed by the EC.