Malaysia is vigorously advancing its green energy initiatives through various programs, notably the Net Energy Metering (NEM) scheme, which allows homeowners to install solar panels on their rooftops and benefit financially. Here’s an in-depth look at how the system works and the incentives in place.
Overview of the NEM Scheme
Under the NEM 3.0 program, which extends the efforts of previous versions, residential, commercial, and governmental entities can install solar photovoltaic (PV) systems. This initiative allows for a one-to-one offset of electricity consumption with solar power production.
Essentially, for every kilowatt-hour of electricity generated by the solar panels, an equivalent amount is deducted from the owner’s electricity bill. If a household produces more electricity than it consumes, the excess can be rolled over to offset future bills but cannot be transferred or converted into cash.
Financial Benefits and Subsidies
The Malaysian government has increased the total NEM quota for households to 450MW, a substantial increment reflecting strong interest and governmental support for solar adoption. This is further supported by financial incentives such as rebates and zero upfront cost installations offered by companies like Gentari and SOLS Energy. These models allow homeowners to install solar systems with minimal initial investment, thereby lowering the barrier to entry for average consumers.
Economic and Environmental Impact
By participating in the NEM program, homeowners not only reduce their electricity bills but also contribute to the national goal of increasing renewable energy usage. The government’s plan includes lofty targets such as the integration of solar panels nationwide, including on residential buildings, mosques, and factories. This is part of a broader strategy under the National Energy Transition Roadmap (NETR), aiming to transform Malaysia’s energy sector to be more sustainable and less carbon-intensive.
Challenges and Realities
Despite the attractive aspects of the program, there are challenges, such as the initial cost for those not covered by subsidy schemes, and the current policy where excess power credits expire annually without monetary compensation. Moreover, there is a call within the industry to extend the 10-year limit on NEM, which restricts the period during which excess energy can be exported to the grid.
