According to the announcement made by The Ministry of Energy and Natural Resources (KeTSA), an additional 300MW of solar quota would be added to the NEM NOVA program. The applications for NEM 3.0 (NOVA) can be made online in the e-NEM system starting from 15th November 2021 at 12.00 pm (noon) onwards.
Under the NEM NOVA, when your business invests in clean energy, the excess energy generated from your solar photovoltaic (PV) system will be exported to the grid at a system marginal price (SMP).
As an industry leader in clean energy, we are delighted and excited for more business owners to leverage this profitable and valuable opportunity to reap financial and environmental positives. Not to mention, this new capacity update will contribute towards post-COVID-19 pandemic recovery by creating an estimated investment value of RM1.2 billion and providing 3,600 job opportunities.
Here are things for you to know about NEM NOVA quota:
What is NEM NOVA?
The NEM NOVA (Net Offset Virtual Aggregation) Program initiative for commercial and industrial building owners is part of the Net Energy Metering (NEM) 3.0 program which was announced by KeTSA to further boost the uptake of solar adoption for the public and private sector, as well as the community. This NOVA quota was first launched in April to increase solar adoption for the commercial and industrial sectors, had already seen a 100% uptake just three months after its launch.
This quota is first come, first serve!
Altogether, the NEM3.0 comprises of three initiatives as below:
Benefits of NEM 3.0 (NOVA)
By adopting clean energy, your business can reap financial and environmental positives:
Benefits of Clean Energy for Your Business:
Is My Business Eligible to Apply for This Scheme?
You can apply for this scheme if you are:
How Would Businesses Apply for NEM NOVA?
If your business is looking to invest in solar energy for its rooftop and takes part in the NEM NOVA scheme, here are the following financing options:
Under outright purchase, your business can choose between the options of self-funding or getting sustainable financing from financial institutions. This sustainable financing provides you with the option of a bank loan or hybrid plan.
The financing can cover up to 100% of the cost to purchase and install a solar photovoltaic system, relieving businesses of up-front costs. These loans have advanced private sector participation, mainly in the manufacturing, industrial, and services industries, to invest in green technology and clean energy.
Power Purchase Agreement (PPA)
While business owners are constantly thinking of how to sustain their top-line expenses, they can look towards reducing their bottom-line expenses. As electricity remains a top-three expense for many businesses, solar energy has proven to be a real contributor to cost-efficient savings where investments can be recouped in 3-4 years whilst shaving off up to 50% of operational costs.
Understanding the accessibility challenges that solar energy presents, we present to you the power purchase agreement (PPA), a financing option that is flexible and sustainable during this period of time. Through PPA, your company bears zero upfront cost, and you will be able to purchase the electricity at a lower rate from the solar service provider than your electricity distribution company.
A PPA is a lease-to-own solar financing model that does involve RM0 CAPEX spending on part of the adopter. Aimed at optimizing cash flow, adopters enjoy lower electricity tariff rates, saving on their monthly energy bills.
Interested in outfitting solar for your business under NEM NOVA, but not sure where to start?
Plus Xnergy’s expertise in outfitting over 220MWp across the country and deep technical know-how will ensure your business is successfully equipped with solar energy and make the most out of its investment.
Applications for NEM 3.0 (NOVA) can be made online in the e-NEM system starting from 15 November 2021 at 12:00 pm (noon) onwards.
To answer any questions, you may have for solar for your business, contact [email protected]
To learn more about clean energy policies in Malaysia, visit our Policy page.