Govt introduces programmes to encourage usage of PV solar systems

PETALING JAYA: In an effort to boost usage of Solar energy and reduce energy cost, the government is introducing the new Net Energy Metering (NEM) 3.0 programme for residential, commercial and industrial users.

Energy and Natural Resources Minister Datuk Dr Shamsul Anuar Nasarah (pic) said NEM 3.0, which will be in effect from 2021 to 2023, has three new initiatives - Program NEM Rakyat, Program NEM GoMEn and Program NOVA.

Under Program NEM Rakyat, residential users who installed photovoltaic (PV) systems will enjoy an offset rate of “one-to-one” for a period of 10 years and they will practice the concept of self-consumption after the 10-year period ends.

The one-to-one offset ratio means that one credit equals up to RM0.51 per kilowatt for domestic tariff.

As an example, if one unit of energy was generated in excess for the current month, then the user will get charged for less one unit of energy the following month.

Meanwhile, self-consumption applies when electricity is being generated for 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 program, said Shamsul in a statement on Tuesday (Dec 29).

“Quota applications for this programme can be made to the Sustainable Energy Development Authority (Seda) beginning Feb 1 2021 until Dec 31,2023.”

For the Program New GoMEn (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 a reduction in 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 that were affected by the Covid-19 pandemic, Shamsul said Program Nova (Net Offset Virtual Aggregation) will assist entrepreneurs and local companies to reduce 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.

Users under this category 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 Program Nova can be made to Seda beginning Feb 1 2021 until Dec 31,2023 or until all quotas were distributed.

“Details of this program 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.

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Net Energy Metering , NEM , solar power


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