Net Energy Metering 3.0: Rooftop solar initiatives

1 July 2021

The Net Energy Metering (“NEM”) 2.0 programme was introduced by the Government of Malaysia (“Government”) on 1 January 2019 and expired on
31 December 2020 (“NEM 2.0”). In an effort to boost the usage of solar energy, the Government has since introduced the Net Energy Metering 3.0 programme (“NEM 3.0”). The Energy Commission (“Commission”) published two guidelines in relation to the NEM 3.0 as follows:

• Guidelines for Solar Photovoltaic Installation under the Programme of NEM Rakyat and NEM GoMEn In Peninsular Malaysia; and
• Guidelines for Solar Photovoltaic Installation under Net Offset Virtual Aggregations (“NOVA”) Programme for Peninsular Malaysia,

(collectively, “Guidelines”).

There are key differences between the NEM 2.0 and NEM 3.0 initiatives relating to among other things:

• NEM period;
• offset mechanism;
• capacity limit; and
• quota available.

Applications for quota allocated under NEM Rakyat and NEM GoMEn may be submitted to SEDA from 1 February 2021 to 31 December 2023 while applications for quota allocated under NOVA Programme may be submitted to SEDA from 1 April 2021 to 31 December 2023. Both applications are to be made on a first-come-first served basis.

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