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What is Net energy Metering?

Net Energy Metering (NEM)

NEM

The Ministry has introduced few solar PV initiatives to encourage Malaysia’s Renewable Energy (RE) uptake. From the RE townhall held on 12th July 2018, one of the key issues highlighted by the PV industry is the need to change the concept of NEM from the existing net billing to true net energy metering.

This is will help improve the return of investment of solar PV under the NEM. Effective on 1st January 2019, the Net Energy Metering (NEM) will be improved by adopting the true net energy metering concept and this will allow excess solar PV generated energy to be exported back to the grid on a “one-on-one” offset basis. This means that every 1kWh exported to the grid will be offset against 1kWh consumed from the grid, instead of at the Displaced Cost previously.


SOURCE: SUSTAINABLE ENERGY DEVELOPMENT AUTHORITY (SEDA) MALAYSIA

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NEM Benefits

The energy generated by NEM consumers will be consumed first which implies that less energy will be imported from the utility.

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Excess energy export to the grid

Business Sectors which may not be operating during the weekends may have excess energy exported to the grid. The credit shall be allowed to roll over for a maximum of 24 months.

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