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NEM: A POWERFUL TOOL IN REDUCING ELECTRICITY BILL

By June 9, 2020 No Comments
There is a spike in electricity bills for residential consumers during the MCO period that began on March 18. According to TNB Chairman Datuk Seri Mahdzir Khalid, this is due to many Malaysians are staying at home and working from home. Logically, it is the case. Staying at home makes us consume a lot of electricity via the usage of all electrical appliances for our comfort at home.
Net energy metering (NEM) allows a registered customer with solar system installation at their premise to generate power for consumption and channel excess energy (if any) into the utility distribution grid. The bi-directional meter measures the excess energy to the network and the amount of electricity supplied by the Distribution Licensee (TNB).
The NEM consumers will be given credit in Ringgit Malaysia (RM) based on the amount of excess energy according to TNB electricity tariff block. These monetary credits could be carried forward from one billing period to another at a maximum of 24 months rollover period, for as long as the consumer has a legal contract for the supply of electricity by the Distribution Licensee (TNB).
If the residential consumers are currently subscribed under the NEM scheme for solar energy, they are among the ones who are not significantly affected by the sudden massive electricity bill. How is that possible? For better understanding, a case study from one of our recent customer is presented below:
The typical monthly electricity bill before MCO looks like this:
The monthly electricity bill during MCO looks like this:

The monthly electricity bill has increased by 55% during MCO and that is overwhelmingly high!


NEM scheme will help to reduce the bill amount.
The proposed solar system is as shown below:

The monthly bill after solar system installation under NEM looks like this:

The calculation is made based on monthly usage during the MCO period.
**Estimated TNB billing amount after installing a solar PV system.

Monthly bill reduction is up to 70%*!


With a capital investment (CAPEX) of RM ‘X’, the return of investment (ROI) period is 5.7 years* with an annual ROI rate of 18%*. The typical estimated solar system lifespan is for 20 years, which means that by the 5.8th year* onwards, more savings (profit) can be earned.

The case study clearly shows that installing a solar system under the NEM scheme is economically beneficial towards residential customers and applicable for industrial and commercial categories as well. Even after MCO is lifted, consumers will still enjoy the benefits from the program as more excess unused energy will be channeled to TNB and credited to your next billing cycle.
NEM scheme is open to all electricity consumers and applicable for existing and newly built premises. Under this program, the solar PV installed capacity limit for residential category customers is up 72kWp, whereas, for the industry and commercial customers will be limited to 75% of their maximum demand or up to 1MWp, whichever is lower.
Let’s support solar energy and receives lucrative economical benefits from it!
*If you are interested or have any inquiries on solar energy, please do not hesitate to contact us at info@bsleco.com for FREE CONSULTATION service. Let’s support clean energy today!

Tan Ai Peng, Director of BSL Eco Energy Sdn. Bhd. | BE (UPM), M. Renewable Energy (UM)