Wait, How Legal is Solar for My Home in Malaysia?

28 Jun 2022

Sound familiar? Looking to invest in clean energy but not sure whether it’s legal? We got news for you, it’s more than legal, as there is a whole scheme around it to encourage the adoption of clean energy.  

Solar photovoltaic (PV) systems have been legal in Malaysia since 2011 with various schemes set up by the government to encourage its uptake. For homeowners, the government has allocated a quota of 100MW up to the 31st December 2023 in the NEM Rakyat category under the Net Energy Metering 3.0 scheme (NEM 3.0) to provide more opportunities to consumers to install solar PV systems for their homes so they can enjoy lower energy costs. Under NEM Rakyat, the energy produced from the solar PV system on the homeowner’s roof will be consumed first, and any excess will then be exported to the national grid in the form of credit in the homeowner’s TNB account. The credits earned will be used to offset part of the homeowner’s electricity bill on a “one-to-one” basis for a period of ten (10) years.

Solar PV systems are now a mature technology with a proven track record of reliability and scalability both locally and globally. Hence, with NEM Rakyat in place, solar PV systems have become more feasible for homeowners to install as long as they live on landed property and have sufficient roof space for the installation. 

Not only can homeowners reap the benefits of this attractive scheme but also enjoy the many benefits of owning a solar PV system which include: 

  • Energy bill savings of up to 90%  
  • Positive return of investment (ROI) due to the attractive scheme available 
  • The comprehensive after-sales service package for peace of mind,  
  • Lower carbon footprint  
  • Increase the value of your property 
  • And more!  

Get to know more about the schemes in Malaysia that make solar energy legal for your home and make the most out of it! 

What do I need to be aware of when it comes to governmental facilitation? 

NEM Rakyat is regulated by the Energy Commission of Malaysia (EC), with Sustainable Energy Development Authority (SEDA) Malaysia as the implementing agency. 

To be eligible to be enrolled in NEM Rakyat, the homeowner will need to fulfill the following: 

  • A registered consumer of TNB or a person applying to be a consumer of TNB. 
  • Subscriber of Tariff A: Domestic Tariff. 
  • Not a delinquent who has not paid their bills or is involved in a meter tampering case. 
  • Renewable energy shall only be generated from solar PV. 

What documents are needed for this scheme, and will it be a hectic and long process?   

To apply for this scheme, the only documents you will need are:  

  • Identification card (MyKad) 
  • Your energy bills  
  • Photocopy of the Sales and Purchase Agreement (SPA) of the premise 
  • Photocopy of land title  
  • Photocopy of the quit rent bill  
  • Marriage certificate (if the property is under the spouse’s name) 
  • Birth certificate (if the property is under the parent’s, child’s, or sibling’s name) 

All in all, your clean energy solutionist will take care of all these submissions for you to ensure the application goes as smoothly as possible, leading to the importance of engaging a solutionist who provides end-to-end service from a technical feasibility study to commissioning the system. 

What about my provider? What can I expect from them during the entire process? 

Before you sign up for a solar PV system with your solutionist, it is important to evaluate your solutionist thoroughly to ensure smooth delivery: 

  1. Experience: 

  • Ensure your clean energy solutionist has been in the business to have an impressionable and proven track record in installation, authority approvals and maintenance.  
  • Ensure your clean energy solutionist possesses the required regulatory permits/approvals to design and install solar PV systems in Malaysia. 
  • Ensure your clean energy solutionist is familiar and complies with the necessary local regulations throughout the entire process. 

  1. Flexible payment options:  

  • Financial commitments can seem like a drag but there are more payment options that allow you to pay as you go.
  • Clean energy solutionists will have options for you to purchase the solutions outright that are usually paid through cash or bank loan. However, as a clean energy solutionist who understands the need for consumers to have flexible financing options, Plus Xnergy has payment methods that suit your lifestyle from outright, hybrid to Malaysia’s first Rent-To-Own solar PV programme, Xnergy Home, where you can own a solar PV system from RM398 per month.  

  1. Determine the suitability of your roof:  

  • Determine whether your roof is suitable for solar PV installation through available online tools designed to help you with this assessment and make the necessary steps. These online tools help you to visualise the size of the solar PV system, pricing and energy consumption.  

  • One example of these online tools is Plus Design, where you can design your own solar PV system by locating your address and adding the amount of your recent monthly energy bills. 

What can I expect from the financial returns of my solar PV system? 

Wondering about the long-term returns of the solar PV system and concerned about the upfront cost of the system? The financial returns of the solar PV system for homes can be as early as 5 years, especially under a rent-to-own program like Xnergy Home, and thanks to attractive schemes such as NEM Rakyat. However, the financial returns can differ on a case-to-case basis.  

As solar PV systems are perceived to be costly with the choices of getting a bank loan and down payment, you can now take it easy with Malaysia’s first Rent-To-Own solar PV programme, Xnergy Home, that comes at no upfront cost, inclusive of 5 years of worry-free maintenance services and enables the homeowner to save up to 90% of their monthly energy bill!  

Case Study: How En. Zul Enjoyed Lowering Energy Bills With Xnergy Home 

One of our clients, Mr. Zulkarnian, was experiencing high electricity consumption of up to RM500 per month when his kids moved back home. Electricity usage increased from activities like charging electric vehicles and heavy usage of air-conditioning. When he heard solar energy could help him save but it required heavy upfront cost, that’s when he discovered our Rent-To-Own solar programme with RM0 down payment that allows him to save huge electricity bills without burning a hole in his pocket. En. Zul has been able to enjoy a hassle-free journey for him due to the quick approval process, which comes with industry-leading, inclusive worry-free maintenance services throughout the contract period.  

Thinking about installing a solar PV system for your home but not so sure about navigating the process? 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]  

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