In October 2025, Bernama reported PETRA's plan to launch Solar ATAP in December 2025 as the formal replacement for the closing NEM scheme. NEM ran through three iterations (NEM 1.0, 2.0, 3.0) since 2016, with NEM 3.0's quota mostly absorbed by late 2025. The launch date subsequently moved to 1 January 2026, but the structural direction was clear from October.
- Initial target launch: December 2025 (later moved to 1 January 2026)
- Replaces: NEM 3.0 (closed to new applications late 2025)
- NEM history: NEM 1.0 (2016), NEM 2.0 (2019), NEM 3.0 (2021)
- Cumulative NEM deployment: ~2,747 MW
- Solar ATAP carries forward the credit-based net-metering mechanic
Why NEM gave way to Solar ATAP
NEM worked too well — its quota structure became the constraint. Each round set a fixed national cap (NEM Rakyat at 500 MW, commercial NEM at various ceilings), and demand outran allocation. Rather than launching NEM 4.0 with another finite cap, PETRA opted for a structural reset: rebrand and restructure as Solar ATAP, with continuous enrolment, no headline cap, and broader scope. We saw the difference in our own customer flow — fewer quota-anxiety calls, more steady-state design conversations.
What happens to existing NEM contracts
If you signed under NEM 3.0 before the transition, your contract continues under the original terms — you're not forced to migrate. New applicants from late 2025 onwards were directed to Solar ATAP. There was a brief application gap between NEM closure and Solar ATAP opening, but most installers absorbed it by pre-staging customer queues through Q4.
What this means for new buyers
If you're a new customer in 2026, NEM isn't relevant — Solar ATAP is the only entry path for new rooftop solar net-metering. The application process is similar but the rules are friendlier (continuous enrolment, 100% MD for commercial). See our Solar ATAP complete guide and NEM 3.0 vs Solar ATAP comparison if you have an existing NEM contract and want to understand the differences.
Source
This summary is based on reporting from Bernama. Read the full original report at the source link for the publisher's complete coverage.