Net-Metering (NEM)

Net Energy Metering (NEM)

NEM or Net Energy Metering is a practice where energy produced from the solar PV system installed will be consumed first, and any excess to be exported to the Distribution Licensee (such as TNB/SESB). Effective 1st January 2019, the new mechanism of NEM will allow electricity users who had installed solar PV system at their home or premises to reduce electricity bills and hence create savings. The excess energy calculation will be based on the 'one-on-one' (1kW to 1kW) principle in this improved NEM mechanism. This scheme is applicable to all domestic, commercial, industrial and agricultural sectors as long as they are the customers of DL.

Net-Metering Solar Photovoltaic System

  • Installed with bi-directional meter capable to measure the import and export of energy.
  • Connection to distribution licensee network only through indirect connection.
  • Application of NEM scheme is based on first-come-first-serve until quota is filled.
  • Maximum capacity of the PV system installed:
    • Domestic:
      • not more than 12kW for single phase.
      • not more than 72kW for three phase.
    • Commercial, industrial and agricultural Consumers
      • 75% of Maximum Demand of the Consumer’s current.

Benefits of Net-Metering System

Benefits of Net-Metering System

  • The system is easy and inexpensive. It enables user (Residential, Commercial and Industry owner) to generate energy consume by self to reduce the dependency to the grid, subsequently reducing grid energy bill payment.
  • Excess energy will exported to grid, hence not necessary to install battery storage system.
  • Exported energy will be exchange with credit that may be used to offset part of electricity bill
  • It allows user to produce energy, which takes some of the pressure of the grid, especially during periods of peak consumption.
  • It encourages consumers to play an active role in alternative energy production, which both protects the environment and helps to preserve natural energy resources.
  • User that use net-metering tend to be more aware of, and therefore more conscientious about their energy consumption
  • Government incentive in promotion Renewable Energy by implementing Tax Rebate through Capital Allowance(CA) and Investment Tax Allowance(ITA) further reduce the cost and increase the ROI
  • Create social awareness in green living concept, promote positive corporate image and subsequently increased the Green Building Index (GBI).