Solar is not only legal for your home in Malaysia, but it can also save up to 90% off your monthly energy bills!  

This is all made possible through the Net Energy Metering (NEM) Rakyat scheme where the energy produced from the solar PV system on the homeowner’s roof will be consumed first, and any excess energy would be exported to the national grid in the form of credit in the homeowner’s TNB account.

What is NEM?

NEM is a mechanism that allows consumers with solar PV systems to generate their own electricity and use it to power their homes. Any surplus energy produced during peak sunlight hours is exported to the Tenaga Nasional Berhad (TNB) grid and is credited against future electricity consumption. This process is based on a “one-on-one” offset model—each kilowatt-hour (kWh) of excess energy exported offsets one kWh of energy consumed from the grid.

How Does NEM Work?

The operational process of NEM is straightforward and effective:

1. Solar PV System Installation:
Homeowners install a solar PV system on their premises (typically on rooftops), which converts sunlight into electricity.

2.Energy Consumption:
The electricity generated is first used to power household appliances and devices, ensuring that the produced energy is utilized efficiently.

3.Excess Energy Export:
When the solar PV system generates more power than is needed, the surplus is exported to the TNB grid.

4.Credit and Offset Mechanism:
The exported energy is measured by a bidirectional meter and is credited directly against the consumer’s electricity bill. This one-on-one offset means that for every kWh exported, one kWh of energy imported later is effectively canceled out.or the net electricity consumption, resulting in substantial reductions in monthly bills.

Here is a breakdown of how your home would be saving energy with NEM Rakyat:  

Example: 

Ahmad installs a solar photovoltaic (PV) system for his home. Throughout a month, his home electrical appliances consumed a total of 500kWh  from the solar PV system during the daytime and exported 637kWh of excess energy generated from the solar PV system back to the grid.  

Since the solar PV system does not produce energy at night, he has imported a total of 687kWh of energy from the grid during the month for his usage at night. After deducting the exported excess energy from the imported energy, he ends up just needing to pay for the net usage of 50kWh at the end of the month.  

The Net Energy Metering (NEM) Rakyat program is a government initiative designed to empower residential electricity consumers in Malaysia to take control of their energy costs by harnessing the power of the sun. This program allows homeowners to install solar photovoltaic (PV) systems on their rooftops and connect them to the national grid. The core benefit of NEM Rakyat lies in its "one-on-one" offset mechanism. For every kilowatt-hour (kWh) of excess electricity your solar system generates and exports to the grid, you receive a corresponding credit on your electricity bill from Tenaga Nasional Berhad (TNB). This means you can effectively reduce your monthly electricity expenditure by utilizing your own clean, renewable energy.

Key Advantages of Joining the NEM Rakyat Program:
Significant Savings: By generating your own electricity, you can substantially lower your monthly bills. The one-to-one offset ensures that you get full value for the excess energy you produce, directly impacting your savings.
Hedge Against Tariff Hikes: With your own solar power generation, you become less susceptible to future increases in electricity tariffs, providing long-term financial stability.
Sustainable Living: By participating in NEM Rakyat, you contribute to Malaysia's renewable energy goals and reduce your household's carbon footprint, promoting a greener and more sustainable future.

Are You Eligible for NEM Rakyat?
The program is open to all Malaysian citizens who are registered residential customers of TNB (under Tariff A). It is specifically for those who are applying for the Net Energy Metering scheme for the first time. There are capacity limits for the solar PV system based on your home's electrical connection: up to 5kWac for single-phase and up to 12.5kWac for three-phase systems.

How to Get Started with NEM Rakyat
The application process is streamlined to make it easy for homeowners to participate. The first step is to engage a Registered Photovoltaic Service Provider (RPVSP) who will guide you through the entire process, from system design and installation to handling the necessary applications with the Sustainable Energy Development Authority (SEDA) Malaysia and TNB. Thinking about installing a solar PV system for your home but wondering how NEM Rakyat works? For more on NEM, visit our Policy page to learn more.  

Make your switch to solar energy a seamless and hassle-free journey with an end-to-end clean energy solutionist who takes care of authority liaison and worry-free inclusive warranties. By signing up for Xnergy Home, you can save up to 90% of your monthly energy bill and enjoy 5 years of inclusive maintenance services. If you are interested in learning more about home solar panels system & cost, contact us at [email protected]