Sustainable Energy Development Authority

(SEDA) Malaysia

Briefing on Net Energy Metering (NEM) Scheme

18th April 2017
Eastin Hotel, Penang
 What is Net Energy Metering (NEM)?

A mechanism where an eligible consumer installs a solar

PV system primarily for his own use and the excess energy
to be exported to the grid for which credit to be received
that may be used to offset part of the electricity bill for
energy provided by the Distribution Licensee (TNB/SESB) to
the electricity consumer during the applicable billing
period.

For example, if a residential consumer has a PV system

on the rooftop, it may generate more electricity than the
home uses. The extra electricity produced will provide a
credit against electricity that is consumed.

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NEM Implementation

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 NEM Quota (2016-2020)
Quota Allocation (proposed)
Location Peninsular Sabah

2020
2016

2017

2018

2019

2016

2017

2018

2019

2020
Year

Category of Domestic/Residential, 20 20 20 20 20 4 4 4 4 4
Consumers MWp
Commercial, MWp 35 35 35 35 35 4 4 4 4 4
Industrial, MWp 35 35 35 35 35 2 2 2 2 2
Sum, MWp 90 90 90 90 90 10 10 10 10 10
Total, MWp 450 50
(as at 1st Nov 2016)
Note: Quota allocation will be based on first-come first-served basis.

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 NEM Quota (Live at SEDAs Website: e-NEM)

*As of 16th April 2017

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 Eligibility
Registered consumers of Distribution Licensees (DL) only in Peninsular
Malaysia (TNB), and Sabah & Labuan (SESB)
Delinquent consumers who have not paid their bills (blacklisted) and have
records of meter tempering are not eligible to apply for NEM scheme
Open to all categories of TNB/SESB consumers under the following tariff*:
i. Domestic/Residential (Kediaman)
ii. Commercial (Perdagangan) [inclusive of government buildings]
iii. Industrial (Perindustrian)
*Refer to TNB/SESB consumers electricity tariff
The resource for producing electricity shall be from Solar Photovoltaic only
 Installation Types and Capacity Limits
Installation types:
i. on the rooftop of buildings
ii. on the garage, car park or similar buildings
Note: For ground-mounted system, it may be allowed on case-by-case basis and the
installation shall be within the compound of applicants premises and approved by the
Energy Commission.

Capacity limit:
For domestic or residential consumers, the allowable maximum
capacity of the PV system installed is 12 kWp for single phase system
or 72 kWp for 3 phase system
For commercial and industrial consumers, the allowable maximum
capacity of the PV system installed is 1 MWp or 75% of maximum
demand (whichever is lower) or 60% of fuse rating or 60% of current
transformer rating

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Rooftop Solar PV - Residential

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Rooftop Solar PV

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Rooftop Solar PV

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Rooftop Solar PV

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 Connection Type

The connection to the DLs (TNB/SESB) network shall be done

only through indirect connection, i.e. within the owners
internal distribution board only

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The diagram of the connection between the consumers solar PV system and the DL distribution system
 Excess Energy

The credit (excess energy) to NEM consumer will be based on

prevailing Displaced Cost for the relevant supply voltage level at
the Point of Common Coupling. The calculation for the net billing
of electricity will be based on the following calculation:
Net billing = [Energy Consumed from DL (kWh) x Gazetted
Tariff] [Energy Exported to DL (kWh) x Displaced Cost]
Prevailing Displaced Cost (RM/kWh)
Connection Point
Peninsular Malaysia Sabah & Labuan
Medium Voltage
0.2380 0.2200
(from 1 kV to 50 kV)
Low Voltage
0.3100 0.3000
(less than 1 kV)

The net billing or credit shall be allowed to roll over for a

maximum period of 24 months. Thereafter, the credit will
be forfeited.
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 NEM Assessment Study

NEM Assessment Study (NEMAS) report is required prior to NEM

application to SEDA Malaysia.
Shall be conducted by the relevant distribution licensee (TNB or SESB). The
requirement is based on kWp of installation as below:

Installed Capacity Study Required Fee of Study (RM)

1 12 kWp No -

> 12 kWp 180 kWp Yes 1,000.00

> 180 kWp 425 kWp Yes 5,000.00

> 425 kWp 1 MWp Yes 8,000.00

Note: Study period = 30 days

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 NEM Assessment Study
Please contact:

TENAGA NASIONAL BERHAD (TNB)

Mr. Sansubari Che Mud
03 - 7967 9346 / 019 - 959 7745 or email Sansubari@tnb.com.my
Sustainable Energy Development
Tenaga Nasional Berhad
No. 129, Jalan Bangsar
59200 Kuala Lumpur

SABAH ELECTRICITY SDN. BHD. (SESB)

Mr. Terrence John Kouju
088 - 282 478 or email terrencek@sesb.com.my
Chief Engineer
Sustainable Energy Development,
Asset Development,
6th Floor, Wisma SESB,
Jalan Tunku Abdul Rahman,
88673 Kota Kinabalu,
Sabah

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 Load Profile
12 kW, 4 days (Friday to Monday), together with application form.
To be prepared & signed by Competent Person (Wireman/PE)

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 How to Apply? Process Flowchart

Submit
Obtain NEM
application to
Start SEDA Malaysia
via appointed
approval and
certificate from
SEDA
End
RPVSP or REC

Appoint Perform T&C,

Check eligibility
Registered PV signing NEM
of the applicant
Service Provider Perform PV contract and
and the
(RPVSP) or system upload all
capacity limit
Registered installation documents at
based on
Electrical NEM system as
electricity tariff
Contractor (REC) proof

Seek Check and

Perform the confirmation replace (if
Apply for public
NEMAS for PV on the max applicable) the
generation
system > 12 capacity from existing DLs
license from ST
kWp DL for PV meter to a
(if applicable)
system > 12 bidirectional
kWp meter

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 How to Apply?

Documents to be submitted by the Applicant:

i. NEM Application Form (Form A) via online system
https://services.seda.gov.my/nem
ii. Design of installation and Single Line Diagram (SLD)
endorsed by relevant Competent Person under Electricity
Regulations 1994
iii.The latest three (3) months electricity bill
iv.NEM Assessment Study (for application > 12 kW)
v. Load profile (Friday-Monday) (for application > 12 kW)
vi.Maximum Demand, fuse or CT rating (if applicable),
endorsed by Professional Engineer or Wireman

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 How to Apply?

The NEM Application Form shall be accompanied with

information as stipulated in Form A:

a) Applicants Profile (Individual/Company/Other Entities)

b)Information of project
c) Technical information
d)Proposed work plan

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20
 Things You Need to Know
NEM Application and Installation
Application can be made either by Registered PV Service Providers (RPVSPs)
or STs Registered Electrical Contractors (RECs) via online at SEDAs portal.
Installation shall be done and endorsed by STs Registered Electrical
Contractor.
Verification and approval
NEM application shall be processed by SEDA within 30 days from the date of
complete submission. NEM certificate will be issued to the successful
applicants.
Application fee
The application fee for NEM scheme shall be at a rate of RM10/kWp during
application. The fee paid is not refundable even if the application is
unsuccessful or rejected.

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 Things You Need to Know (cont.)

NEM meter
TNB/SESBs existing meter shall be bi-directional (with import-export feature).
The replacement (if required) shall be borne by NEM consumer. Consumer
may install check meter for export measurement of the same type
prescribed by TNB/SESB.

Goods and Services Tax (GST)

Each energy exported to the grid under the NEM scheme is subjected to GST
and if NEM consumer is a GST-registered person or company, he/she shall
invoice the DL for the electricity exported to the grid. The calculation of tax
involved for the exported energy will be based on the following calculation:
Invoice to DL = Energy Exported to DL (kWh) x Displaced Cost x 6% GST

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 FAQs

Q: What is the maximum duration allowed from application to proposed

NEMCD?
A: 12 months from the date of NEM application until the date of proposed NEM
contract with TNB/SESB, failing which the quota allocated will be refused and
offered back to other potential NEM applicants.

Q: What types of meter are required for NEM?

A: 2 types of meter are required as below:
i. TNB/SESBs bi-directional meter (with import-export feature) to record the
amount of electricity consumed, produced or exported;
ii. PV meter/data logger/inverter with monitoring feature to record the total
amount of electricity generated by the PV system.
Optional - May install check meter for measurement of the energy export (if
applicable) and shall be of the same or equivalent to the standards of the
consumer meter installed at the premises by TNB/SESB;

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 FAQs
Q: Am I eligible to participate in NEM?
A: Yes, as long as you are a customer of TNB/SESB. The basis is always your
electricity bill. Please ensure you are a registered customer of TNB/SESB (your
name/ company as appeared in the TNB/SESB bill), only then you are eligible to
participate in NEM.

Q: If I plan or have installed Solar PV system for self-consumption (SELCO) and

have taken the necessary steps to ensure no reverse flow or energy exported to
the grid, do I need to apply for NEM?
A: No, but for PV system with capacity above 72 kWp, generation license (private)
from ST is required and subject to complying with the relevant rules under the
Electricity Supply Act (ESA).

Q: How long is the validity period of the NEM contract?

A: The NEM contract shall be effective on the day of NEM contract signing with
both parties. The NEM contract shall remain in effect unless otherwise terminated
by either party or cancellation of the main electricity contract.

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 FAQs

Q: Is a non-local / 100% foreign company eligible to participate in NEM?

A: Yes, as long as he/she/it is a customer of TNB/SESB.

Q: What types of incentives available for NEM consumers?

A: At the moment there is fiscal incentives offered to eligible companies in
the form of Green Technology Incentive by Malaysia Investment Development
Authority (MIDA), available until 2020.
http://www.mida.gov.my/home/tax-incentives-for-green-industry/posts/

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 NEM: Documents and Downloads
www.seda.gov.my Net metering

NEM guidelines
Manual application form and e-NEM System (online
application)
NEM contract
Domestic/residential
Non-domestic (commercial & industrial)
Technical guideline for connection of indirect solar PV under
NEM scheme
Procedure for NEM Meter application and signing NEM contract
with TNB

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Application Form
Form A (NEM Application Form)

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NEM Billing

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 What are the benefits of NEM to the consumers?
Encourage consumers to play an active role in
renewable energy (RE) generation, which addresses
climate agenda and national energy security
Reduction in greenhouse gas emissions
Hedge against any possibility of future electricity
tariff increase
Availability of power for consumer during grid failure
(if energy storage system is incorporated)

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 Malaysias Commitments

Malaysias NDC: reduce its GHG emissions intensity of

GDP by 45% by 2030 relative to the emissions
intensity of GDP in 2005

Target for RE Mix in Electricity Generation

2020 2025 2030

20% 23% 25%
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 Solar PV Costs Continue to Decline Globally

Source: IEA 31
 Comparison of LCOE of Various RE Sources

Source: IRENA
 Solar Will Soon Dominate

http://www.bloomberg.com/news/articles/2016-06-13/we-ve-almost-reached-peak-fossil-fuels-for-electricity
 Dare We Dream a 100% RE Scenario?

Source: IRENA

Already Running on 100% RE Targeting to Have 100% RE

Costa Rica 47 developing countries pledged to go

Iceland 100% RE during COP22
Lesotho Nordic countries
Certain states and cities in various RE100 companies
countries in North America & Europe Many other states
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and cities
For further enquiries, please contact:

Renewable Energy Technology Division,

Thank You
SEDA Malaysia
Galeria PjH, Level 9
Jalan P4W, Persiaran Perdana,
Presint 4, 62100 Putrajaya
T: +603 8870 5832

Likas Square Commercial Centre

Unit 32, Level 1 , Lorong Likas Square,
Jalan Istiadat Likas,
88400 Kota Kinabalu, Sabah

Tel: +6088-252101/251462
E: NEM@seda.gov.my
W: www.seda.gov.my
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