What is NEM?

NEM or Net Energy Metering is a mechanism for you to use solar energy that you produced for your own consumption. The excess energy generated will be exported to TNB grid and will be turned to credit that may be used to offset part of the electricity bill.

What is NEM?

NEM or Net Energy Metering is a mechanism for you to use solar energy that you produced for your own consumption. The excess energy generated will be exported to TNB grid and will be turned to credit that may be used to offset part of the electricity bill.

Concept of NEM

The concept of NEM is that the energy produced from the installed solar PV system will be consumed first, and any excess will be exported to TNB on a “one-on-one” offset basis. This scheme is applicable to all domestic, commercial, industrial and agricultural sectors as long as they are the customers of TNB. The PV systems can be installed at available rooftops or car porch within their own premises.

Based on FiT experience, solar PV is a technology that requires minimal construction and with high take up rate compared to other RE technologies. One factor driving such growth is the declining cost of solar PV systems in recent years. As solar PV technology is more applicable to the NEM scheme, it is one of the technologies that allows the public at large to play an active role in mitigating climate change. They can generate clean energy, hence reducing the energy consumption and greenhouse gas emissions.

The NEM scheme is ideally suitable to complement the current FiT and Large Scale Solar schemes in achieving the 20% national RE target in electricity power mix by enabling more solar PV rooftop applications, and these efforts in turn help to reduce dependency on imported fossil fuels.

Benefit of NEM

The energy generated by NEM consumers will be consumed first which implies that less energy will be imported from the utility. In many countries, the NEM scheme is effective to hedge against fluctuation or increase in electricity tariff in the future. This is especially relevant for consumers that fall under the high electricity tariff block.

Under the NEM scheme, any excess energy generated will be exported to the utility grid and will be paid on a “one-on-one” offset basis. The priority is for self-consumption, however some premises especially industrial or manufacturing sectors which may not be operating during the weekends may have excess energy exported to the grid. The credit shall be allowed to roll over for a maximum of 24 months.

Implementing Agency
Regulator
Distribution Licensee