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Benefit of Net Energy Metering in Malaysia: How It Affects Your Bill

Benefit of Net Energy Metering in Malaysia: How It Affects Your Bill

What is Net Energy Metering?

Net Energy Metering (NEM) is a billing mechanism that allows consumers to generate their electricity, primarily for their use, and export any excess electricity back to the grid. The excess electricity is then used to offset the electricity that the consumer consumes from the grid. This means that consumers can potentially reduce their electricity bills, by generating their electricity.

NEM in Malaysia

In Malaysia, NEM operates on a simple principle: prioritize using solar-generated electricity within your premises. Any surplus not consumed is sent to TNB, where it's diligently recorded. TNB then offsets your import with the exported surplus, resulting in a net bill. This seamless process ensures efficient utilization of solar power, making energy management a breeze. This smooth process makes it easy to use solar power efficiently, simplifying energy management.

Malaysia has been implementing NEM since 2016. The current scheme, NEM 3.0, was introduced in 2021 with a quota of 500 MW. Due to high demand, this quota was fully subscribed by November 2023. In response, the government recently announced additional quotas for the program in February 2024.

The implementation of NEM in Malaysia is regulated by the Energy Commission (EC). The EC has issued several guidelines and regulations that govern the NEM scheme. These guidelines and regulations cover topics such as eligibility, application procedures, and metering requirements.

NEM 3.0 vs. Previous Versions

The original NEM scheme launched in 2016 and offered a 500 MW quota, followed by NEM 2.0 in 2019 which introduced the "one-on-one" offset. Both utilized a fixed quota and ended in 2020.

Due to high demand, NEM 3.0 arrived in 2021 with a larger 1450 MW quota and significant changes. It offers an extended validity until 2024 and introduced the NEM Rakyat program for residential users and the NEM NOVA program for commercial and industrial consumers. This demonstrates the government's commitment to expanding solar energy access and encouraging wider participation in the NEM program.

How Does NEM Influence Your Energy Bills?

NEM can have a significant impact on electricity bills. In some cases, NEM can save consumers up to 100% of their electricity bills. The amount of savings that a consumer can achieve depends on many factors, including the size of their solar PV system, their energy consumption patterns, and the electricity tariff they are on.

In the previous incentive system, any solar energy generated was directly exported to TNB, and in return, TNB would credit the corresponding amount into the beneficiary's bank account.

With NEM, consumers will be directly rewarded for generating their electricity by allowing them to offset their bills with the excess electricity they generate.

How to Apply NEM in Malaysia?

To apply for NEM in Malaysia, consumers must follow these steps:

  1. Choose a registered solar PV installer.
  2. Submit an application to the Sustainable Energy Development Authority (SEDA).
  3. Obtain approval from the Energy Commission (EC).
  4. Install a solar PV system.
  5. Apply for a metering installation with Tenaga Nasional Berhad (TNB).
  6. Sign a NEM contract with TNB.

Solar Power Integration for NEM

Solar panels are the most common type of renewable energy source used in NEM. Solar panels convert sunlight into electricity, which can then be used to power homes and businesses.

Consumers can maximize the benefits of NEM by installing a solar PV system that is sized to meet their energy needs. They can also maximize benefits by using energy-efficient appliances and practices.

Community Engagement and Awareness

Community participation is important in the success of NEM. Communities can participate in NEM by promoting awareness of the scheme and by supporting the development of solar PV projects.

Also, encouraging individuals to become advocates for NEM fosters a sense of shared responsibility. Through community initiatives, awareness campaigns, and collaborative efforts, the ripple effect of NEM expands, creating a more resilient and environmentally conscious society.

Conclusion

Net Energy Metering (NEM) is a valuable tool that can help consumers reduce their electricity bills and their environmental impact. NEM is a proven technology that is becoming increasingly affordable and accessible. Consumers who are interested in NEM should consider applying for the scheme today.

Here are some additional resources that you may find helpful:

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