Government Incentives for Homes

Government Net Energy Metering (NEM)? scheme

Malaysia’s Net Energy Metering (NEM)? system obliges TNB to buy from Feed-in Approval Holders (FIAHs) the electricity produced from solar PV systems over a fixed period of 21 years at a NEM rate, which is set by a government agency, Sustainable Energy Development Authority of Malaysia (SEDA Malaysia).

Solar PV Quota Year 2016

SEDA Malaysia sets a quota on the amount of solar systems that can be installed annually and has recently proposed a quota on 12 September 2015 which is sufficient for 3,000 homes in the year 2016 and another 3,000 homes in the year 2017.

If an individual who applies for the FIAH for 2016 fails to acquire the approval, that individual will automatically be granted the permit in the following year i.e. 2017. Once the 2-year cycle i.e. 2016/2017  has been completed, a new proposal will be announced in 2018.

The proposed quota for Individuals along with its respective mechanism and dates are as follows:

Individual 15 Electronic balloting •   End Oct 2015 – Profile creation & submission of application up to 8th Jan 2016 (Fri)
•   19 Jan 2016 – Computerized Balloting Day


Net Energy Metering (NEM)? Rate

TNB will pay for the solar energy generated based on the NEM rates that will prevail for a period of 21 years from the NEM Commencement Date – once the contract is signed.

Below are the following proposed NEM rates for homes for the year 2016 and also an example of NEM Rate calculation for a 6 kW rooftop solar PV system.

Description of Qualifying Solar Systems Installation NEM Rates (RM per kWh)
(a) Basic NEM rates having installed capacity of:  
(i) up to and including 4 kW 0.7792
(ii) above 4 kW and up to and including 24 kW 0.7601
(b) Bonus NEM rates having the following criteria (one or more):  
(i) use as installation in buildings or building structures 0.1550
(ii) use as building materials 0.0828
(iii) use of locally manufactured or assembled solar PV modules 0.05
(iv) use of locally manufactured or assembled solar inverters 0.05

e.g. For a 6 kW rooftop solar PV system and its applicable NEM Rate:

RM 0.7601 (Basic NEM Rate) + RM 0.1550 [Bonus NEM Rate (i)] + RM 0.050 [Bonus NEM Rate (iii)] = RM 0.9651

Reminder: The applicable NEM rates will prevail for a period of 21 years from the NEM Commencement Date – once the contract is signed.


Anyone who is over 21 years old and can show financial capability to fund the solar PV system.


  • Individual can make a maximum of two (2) NEM applications
  • In each application, individual can apply for a maximum of 12kW solar PV system.

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Disclaimer: The information above is excerpted from SEDA Malaysia’s official website and it serves the purpose as general guides. We do not take any responsibility for any omission or incompleteness of information and if there is any change of NEM rates, rules, and policies set by SEDA Malaysia. It is investor’s responsibility to check for the latest information from SEDA Malaysia.