NEM 3.0 Malaysia 2026: Complete Guide

Everything about Net Energy Metering in Malaysia. Understand NEM Rakyat, NOVA, export rates, and how it compares to Solar ATAP.

What is NEM 3.0?

Net Energy Metering Explained

NEM (Net Energy Metering) is Malaysia's solar program administered by SEDA that allows you to offset your electricity bill by exporting excess solar energy to the TNB grid. When your solar panels produce more than you use, the excess is exported and credited against your bill at a 1:1 rate (within the same billing period).

NEM Rakyat

For residential consumers. System size up to 72kW. 1:1 offset rate. Has quota limits.

NEM NOVA

For commercial & industrial. Up to 1MW (special approval for larger). Virtual power purchase available.

GoMEn

For government buildings. Special program for federal and state government facilities.

Quota Based

NEM programs have annual quota limits. Once quota is full, new applications go on waiting list.

NEM 3.0 Quota Statistics (2021-2025)

3,000 MW Total NEM Allocation (500 + 2,500 MW)
700 MW NEM Rakyat (Residential)
1,700 MW NEM NOVA (Commercial/Industrial)
100 MW GoMEn (Government Buildings)

Key Milestones

  • 2016: NEM 1.0 launched with 500 MW quota
  • 2021: NEM 3.0 introduced with 2,500 MW additional quota
  • May 2025: NEM Rakyat reached 99.8% capacity (599/600 MW approved)
  • June 2025: Government extended quotas (+100 MW Rakyat, +300 MW NOVA) until 30 June 2025
  • Jan 2026: Solar ATAP replaces NEM with no-quota system

Over 96,000 rooftop solar users under MBIPV and NEM schemes continue to receive export credits under their original programme rules.

Sources: SEDA Malaysia, Ministry of Energy

NEM 3.0 vs Solar ATAP

Key Differences

Understanding which program is right for you

Feature NEM 3.0 Solar ATAP
Quota Limited annual quota No quota limit
Export Credit Rate 1:1 (within billing period) 1:1 (with monthly rollover)
Credit Rollover No - expires end of billing period Yes - rolls to next month
System Type Rooftop or ground-mounted Rooftop only (ATAP = roof)
Max Size (Residential) 72 kW 72 kW
Available Since 2019 (NEM 3.0) January 2026
Registration Through SEDA Through SEDA

Recommendation: For new residential installations in 2026, Solar ATAP is generally better due to no quota restrictions and credit rollover. For commercial installations requiring ground-mounted systems, NEM NOVA remains the option.

How Net Energy Metering Works

1. Generate Solar

  • Solar panels produce electricity during daytime
  • Power is first used by your home/business
  • Excess is exported to TNB grid

2. Export Excess

  • Bi-directional meter records export
  • Exported kWh credited at retail rate
  • NEM: 1:1 rate (same as import)

3. Import at Night

  • At night, import from grid as normal
  • Export credits offset import charges
  • Pay only net difference

4. Monthly Billing

  • NEM: Credits expire each billing period
  • ATAP: Unused credits roll forward
  • Minimum charge may still apply

NEM 3.0 Program Details

NEM Rakyat

For: Residential

  • Domestic tariff consumers
  • System size: Up to 72kW
  • 1:1 energy offset
  • Annual quota applies

NEM NOVA

For: Commercial & Industrial

  • C&I tariff consumers
  • System size: Up to 1MW
  • Virtual PPA option
  • Larger systems need approval

GoMEn

For: Government

  • Federal & state buildings
  • Schools, hospitals, offices
  • Special allocation
  • Supports RE targets

NEM Eligibility Criteria

You Can Apply If:

  • Active TNB account holder
  • Property owner or have owner consent
  • Suitable roof/space for installation
  • Use SEDA registered installer
  • Quota still available (NEM)

Documents Required:

  • Copy of IC / Company registration
  • Recent TNB bill (3 months)
  • Property ownership proof / consent
  • System design from installer
  • Single line diagram

NEM FAQ

Is NEM quota still available?

NEM quota varies by year and fills up quickly. Check with SEDA or your installer for current availability. Solar ATAP (from 2026) has no quota limits, making it a better option for most new installations.

What happens to excess credits under NEM?

Under NEM 3.0, excess credits expire at the end of each billing period - you cannot carry them forward. This is a key difference from Solar ATAP which allows monthly rollover.

Can I switch from NEM to Solar ATAP?

Existing NEM installations may be able to migrate to Solar ATAP. Check with SEDA for migration procedures and any implications for your existing registration.

Is NEM available in Sabah and Sarawak?

NEM programs are primarily for Peninsular Malaysia under TNB. Sabah (SESB) and Sarawak (SEB) have their own programs - check with respective utilities.

Need Help Choosing?

Not sure whether NEM or Solar ATAP is right for you? Contact us for a free consultation. We'll analyze your situation and recommend the best program.

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