Frequently Asked Questions (FAQs)

Net Energy Metering (NEM) 3.0 is programmed to provide new users with electricity bill reduction by installing solar photovoltaic (PV) systems at their premise either for residential, commercial, or industrial. There are three types of NEM programs:

1. NEM Rakyat
2. NEM GoMen (Government Ministries and Entities)
3. NOVA (Net Offset Virtual Aggregation)

All the applications can be made via SEDA’s e-NEM system at https://services.seda.gov.my/nem/home. Applicants shall appoint SEDA’s Registered PV Service Provider (RSVSP) for NEM application submission.

The solar PV will be installed at the applicants’ premises within 3 months from the date of the NEM approval. Applicants should be ready and available during that period as failure to do so will result in the approval to be cancelled. Any processing fee will not be refunded.

For this moment, there are fiscal incentives that are offered to eligible companies in the form of Green Technology Incentive. Read more from https://www.mida.gov.my/forms-and-guidelines/tax-incentives-for-green-industry/

Two types of meters that are required are as follows:

1. The Bi-directional Meter shall be able to measure and record the electricity supplied by the Distribution Licensee to the NOVA Consumer and the Energy exported by the NOVA Consumer to the Supply System. The Bi-directional Meter shall be supplied and installed by the Distribution Licensee.
2. The PV Meter for measuring the Energy produced by the solar PV installation shall be installed and maintained by the NOVA Consumer.

Users do not need to apply for NEM as Samaiden will handle everything for you. However, for PV systems which are above 72kW, users need to have a generating license (private) from Suruhanjaya Tenaga and this is subject to the relevant rules under the Electricity Supply Act (ESA).

Connection to the TNB network shall be done only through indirect connection within the user’s internal distribution board only.

The NEM tenure will be in 10 years starting from the commencement date of the NEM contract. After 10 years, the solar PV installation will turn to self-consumption. This means that there is no offset and roll-over will be allowed for any excess energy exported after 10 years for users.

NEM Rakyat and NEM GoMen are only applicable for solar PV system installation above 24 kW for single phase and above 72kW for three phases. Any user exempted from the licensing requirements under section 9 of the Act pursuant to the Notification on Exemption Under Section 54 [P.U.(B) 342/2008] shall complete a form as attached in Attachment 1 (found in the Guidelines for NEM 3.0) and return the same to the Commission no later than 28 days after it is notified of its approval.

NOVA users are to note and comply with the licensing requirements stipulated under the Act and its subsidiary legislations. License from the Commission no later than 28 days after being notified by SEDA Malaysia that the application has been approved. Any user exempted from the licensing requirements under section 9 of the Act pursuant to the Notification on Exemption Under Section 54 [P.U.(B) 342/2008] shall complete a form as attached in Attachment 1 (found in the Guidelines for NOVA) and submit together with Commission no later than 28 days before the Commencement Date.

All registered users of Tenaga Nasional Malaysia (TNB) in Peninsular Malaysia that have not involved in any solar PV program are eligible to apply. Users also need to meet the following criteria in order to apply:

• NEM Rakyat – A domestic consumer occupying a private dwelling premise which is not used as a hotel, boarding house or used for the purpose of carrying out any form of business, trade, professional activities or services
• NEM GoMen – A ministry, department or statutory body established by the government at all levels of administration whether at the federal, state or district levels including local authorities.

Solar PV installation must be PV panels which are mounted on the rooftop of the building within the same premise.

1. For residential or domestic consumers, the maximum capacity of the PV system that is allowed to be installed is 4kWac for single phase and 10kWac for three phases.
2. For Government Ministries and Entities, the maximum capacity of the PV system that is allowed to be installed is below 1MWac and subject to following conditions:
   a. Medium Voltage Consumers maximum demand of 75%
   b. Low Voltage Consumer not exceeding 60% of fuse rating (for direct meter) or 60% of the current transformer (CT) rating of the metering current transformers.
3. For commercial and industrial consumers, the maximum capacity of the PV system that is allowed to be installed is 1MWac for net offset or 5MWac for net offset and virtual aggregation, and these are subjected to following conditions:
   a. Medium Voltage Consumers maximum demand of 75%
   b. Low Voltage Consumer not exceeding 60% of fuse rating (for direct meter) or 60% of the current transformer (CT) rating of the metering current transformers.

There is no cash transaction under the NEM Rakyat and NEM GoMen program, but the excess energy generated from the Solar PV system will be exported to the Distribution System. The credit to be received for such excess energy may be used to offset part of the electricity bill for energy provided by TNB during the applicable Billing Period. Net credit won’t be allowed to roll over for a maximum of 12 months within the Settlement Period. Any available Energy after the period will be forfeited.

There is no cash transaction under the NOVA Programme but the excess energy generated from Solar PV system will exported through the Supply System under one of the following categories:

1. Excess Energy which is not consumed will be exported via the Supply System to the Distribution Licensee. The value of the exported Energy shall be credited to the NOVA user account to be used to offset the bill payment for the next Billing Period. The unit price (RM/kWh) of the Energy exported is based on the Average SMP
2. Excess Energy which is not consumed will be exported via the Supply System up to 3 Designated Premise. The value of the exported Energy shall be credited to such Designated Premise to be used for offsetting the bill payment for the next Billing Period. The unit price (RM/kWh) of the Energy exported is based on the Average SMP.

1. Applicant’s IC copy (Applicable for NEM Rakyat)
2. Form 9 (Applicable for NEM NOVA & GoMen)
3. Latest 3 months TNB Bill
4. Site Ownership (Land Title, S&P or Lease Agreement)
5. NEMAS or Connection Assessment Study (CAS) approval and report (for capacity above 72kW)
6. Detailed engineering design endorsed by a competent person.