How Net Energy Metering (NEM) Rakyat 3.0 Affects Your Solar Electricity Bills

The Net Energy Metering (NEM) 3.0 program introduced by TNB (Tenaga Nasional Berhad) allows homeowners in Malaysia to benefit from the excess solar energy their systems produce. Under this scheme, homeowners can export surplus energy back to the grid and earn credits, which significantly reduce their electricity bills. While batteries offer a way to store excess energy, NEM provides a more straightforward financial benefit without the need for expensive storage systems. However, with the NEM 3.0 quota running out, homeowners might be wondering how this affects their potential savings and what alternatives or future options might look like.

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What is NEM Rakyat 3.0 and How it Works

Reference : TNB Website

Net Energy Metering (NEM) Rakyat 3.0 is a program introduced by TNB to help Malaysian homeowners reduce their electricity bills through solar energy. Under this scheme, homeowners with solar PV systems can export excess electricity generated during the day back to the grid and earn credits, which can be used to offset their future electricity consumption on a “one-on-one” offset basis, for a 10 year period. This means 1 kWh exported offsets against 1 kWh of electricity consumed. This helps maximize the value of the solar energy produced and significantly lowers monthly bills.

The NEM Rakyat 3.0 program allows homeowners with a single-phase connection to install solar systems up to a maximum size of 5 kW (this usually will mean a maximum system of 6-7kW), while those with a three-phase connection can install systems up to 12.5 kW (this usually will mean a maximum system of 16-17 kW). Homeowners who haven’t participated in any previous solar programs are eligible to apply. NEM Rakyat 3.0 operates on a quota basis, with a limited capacity available until December 2024 or until the quotas are filled.

The process is simple: your solar panels generate electricity for your home, and any surplus energy is sent back to TNB. This extra energy is credited to your account, reducing your future electricity bills by offsetting the grid power you use when your solar production is lower—such as during the night or on cloudy days. By using the energy you generate first and receiving credits for the excess, you can significantly lower your monthly electricity costs without needing to invest in an expensive battery storage system. This makes NEM Rakyat 3.0 an efficient and cost-effective solution for homeowners looking to maximize their solar investment.

If you want to know more about NEM, you can check out our other article about Net Energy Metering in Malaysia.

The Role of Batteries in NEM Rakyat 3.0

Though not a requirement for NEM, solar batteries can play a critical role in optimising your savings. Batteries allow you to store excess energy instead of sending it to the grid. This way, during times when your solar panels aren’t producing, you can draw power from your stored energy rather than the grid, which is especially useful if your NEM quota runs out or is fully utilised.

However with the current NEM scheme TNB acts as your free battery by giving you credits on a “one-for-one” offset basis. As such, batteries aren’t always necessary, but they can increase your energy independence, especially as TNB revises its compensation rates or if the NEM quotas fill up. We do not recommend getting battery systems given the current NEM scheme, since they are expensive. The upfront costs for a battery system can be quite high (oftentimes doubling the cost of your solar system!), making it less attractive for homeowners who are primarily seeking to reduce cost of their electricity bills.

How NEM Rakyat 3.0 Can Reduce Your Solar Electricity Bills

Installing a solar PV system under NEM Rakyat 3.0 can greatly lower your electricity bills by letting you send any extra energy you produce back to the grid for credits. For example, if you install an 11-panel system that generates around 500 kWh of energy per month, you could save about RM 330 monthly. Since around 40% of this energy is produced during the day when your household might use less power, the excess energy gets sent back to the grid. With NEM, you earn credits for this extra energy, which can then reduce your electricity costs when you’re using grid power at night or on cloudy days. Without NEM, this extra energy would go to waste, and you wouldn’t get any compensation, leading to fewer savings.

What to Do If the NEM Rakyat 3.0 Quota Reaches Its Limit

One of the critical aspects of NEM is that it operates on a quota basis. As of 25 September 2024, a total of 355 MWac has been applied for, with 313 MWac already approved, leaving a remaining quota of 44 MWac. Once this quota is filled, no new applicants will be able to join the NEM scheme until a new batch of quotas is released.

Reference : SEDA Website

It’s generally expected that more quotas will be released either by December or early next year, though the mechanism might differ. If you’re considering solar installation, it’s crucial to keep an eye on the updates from SEDA (Sustainable Energy Development Authority) or TNB.

If you miss out on the NEM quota, there are still options. While NEM may not be available for a time, the possibility of new quotas being released is quite high, so keep monitoring updates. Additionally, you may consider installing solar batteries to store excess energy, ensuring you still benefit from the solar energy you produce. However, for commercial users, NEM isn’t mandatory as they can often negotiate different energy agreements with TNB, while residential homeowners will need NEM to benefit from exporting their excess energy to the grid.

Should You Consider NEM Rakyat 3.0?

NEM Rakyat 3.0 offers a great opportunity for homeowners to reduce electricity bills by generating solar energy and exporting surplus energy back to the grid, with potential savings of up to 60%. By earning credits for excess energy, homeowners can significantly cut their monthly costs. However, the NEM quota system means timing is crucial—staying updated on quota availability is essential to take full advantage of the program. Keep an eye on updates from SEDA and TNB to ensure you can maximise your savings and enjoy a more sustainable, cost-effective energy future.

At GetSolar, we provide a zero upfront cost Rent-to-Own solution in Malaysia, offering end-to-end support — from NEM application to solar installation, maintenance and even performance guarantees! Ready to see how much you can save with solar?

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