The Net Energy Metering 3.0 program will be offered from February 2021 to 2023 with an allocated quota of 500MW. Three major initiatives will be introduced to further increase the use of solar energy. Among the initiatives introduced is the “virtual NEM” – enabling the commercial and industrial sectors to distribute solar energy virtually.
These three main initiatives are:
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NEM Rakyat (Homeowners)
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NEM GoMEn Program (Ministries and Government Entities)
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NOVA Program (Net Offset Virtual Combination)
NEM Rakyat Program (Homeowners)
The program aims to reduce electricity bills by generating electricity for own use through the use of solar PV systems. The energy offset ratio is at 1: 1. The roll-over period is for 12 months while the maximum size of solar PV system that can be installed by homeowners is 4kWac for single phase and 10kWac for three phase.
The NEM Rakyat program has an allocated quota of 100MW and starts on February 1, 2021 with a 10 -year offset contract period for successful applicants. After 10 years, it will be arranged as self consumption (Selco). The program lasts until the quota has been fully allocated or on December 31, 2023 (whichever is earlier).
NEM GoMEn Program (Ministries and Government Entities)
The NEM GoMEn program aims to reduce the electricity bill of government buildings through the use of solar PV systems. The energy offset ratio rate is at 1: 1. The roll-over period is for 12 months. The maximum allowed solar PV system size is 1MWac per account.
The NEM GoMEn program has an allocated quota of 100MW and starts on February 1, 2021 with a 10 -year offset contract period for successful applicants. After 10 years, it will be arranged as self consumption (Selco). The program lasts until the quota has been fully exhausted or on December 31, 2023 (whichever is earlier).
NOVA Program (Commercial & Industrial)
The NOVA (Net Offset Virtual Aggregation) program aims to reduce business costs through the use of solar PV systems by the commercial and industrial sectors. The roll-over period is for one month. The NOVA program enables successful applicants to:
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Uses electricity generated by solar PV systems.
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Selling surplus electricity (produced with solar PV systems) back to the grid at market rates or the Marginal Price System (SMP). The electricity sold will be converted into credit and will be reflected in the next month’s electricity bill.
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Offset excess electricity (generated with solar PV systems) by distributing it through virtual aggregates to 3 different electricity bill accounts of the same name.
The maximum capacity of the PV Installation for each category shall be based on the Maximum Demand of the NOVA Consumer. A NOVA Consumer under Category A shall not install more than 1,000kW for net offset and subject to the following conditions:
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The maximum capacity of the inverter output of the solar PV Installation shall not be more than 75% of Maximum Demand of the NOVA Consumer under the NOVA Contract.
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The Maximum Demand of the NOVA Consumer is based on the average of the recorded Maximum Demand of the past twelve (12) months or the declared Maximum Demand for NOVA Consumers with less than twelve (12) months record.
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For low voltage Consumers, the maximum capacity limit is 60% of fuse rating (for direct meter) or 60% of current transformer (CT) rating.
A NOVA Consumer under Category B shall not install more than 5,000kW for net offset and virtual aggregation and subject to the following conditions:
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The maximum capacity of the inverter output of the solar PV installation shall not be more than 100% of Maximum Demand of the NOVA Consumer under the NOVA Contract.
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The Maximum Demand of the NOVA Consumer is based on the average of the recorded Maximum Demand of the past twelve (12) months or the declared Maximum Demand for NOVA Consumers with less than twelve (12) months record.
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For low voltage Consumers, the maximum capacity limit is 60% of fuse rating (for direct meter) or 60% of current transformer (CT) rating.
The NOVA program has an allocated quota of 300MW and starts on April 1, 2021 with a 10 -year contract term for successful applicants. Upon the expiry of the term of this Contract, the Consumer agrees with TNB that the Consumer shall be registered by TNB as self-consumption subject to the guidelines relating to self-consumption as issued by the Suruhanjaya Tenaga. The program last until the quota has been fully allocated or on December 31, 2023 (whichever is earlier).