Malaysia government fuels solar panel installations via NEM Program


(Photo: Pexels)

Malaysia’s deputy minster for Energy Transition and Water Transformation announced an encouraging surge in solar panel installations in residential areas across the country, marking a promising step towards its energy transition.

"NEM program is a game-changer in our pursuit of energy efficiency,” said the Deputy Minister during the announcement.  "Not only does it empower homeowners to contribute to the country’s energy needs, but it also paves the way for a more sustainable future."

In a strategic move to promote clean energy, the government has opened quota applications for homeowners to install solar panels through the Net Energy Metering (NEM) Program. This initiative is part of the Malaysia's broader plan to reduce dependence on fossil fuels and transition towards renewable energy.

With an additional quota offer of 100 MW for NEM Rakyat and 300 MW for NEM NOVA (Net Offset Virtual Aggregation), the government aims to incentivize more homeowners to participate in this green revolution. The positive response from homeowners is a testament to the growing willingness to adopt clean energy solutions.

NEM Program is designed to enable domestic electricity consumers and users in commercial and industrial categories to generate electricity for self-consumption through PV solar systems. This program allows excess energy produced by households and businesses to be fed back into the national grid, reducing the overall demand for electricity and lowering energy costs.

(Photo: Sustainable Energy Development Authority Malaysia)

The recent passing of the Energy Efficiency and Conservation Bill in Oct. last year marks a milestone in the country's energy transition plans. The bill aims to regulate energy consumption and conservation beyond previous efforts to address electricity demand in the industrial, commercial, and residential sectors.

Khoo Yu Lin and Amin Abdul Majid from the Infrastructure, Energy and Utilities practice group discuss the key measures under the bill. "It signals a shift towards a more comprehensive approach to energy management. It's not just about reducing energy consumption, but also about optimizing energy use and promoting renewable energy… The new regulations will drive innovation and create opportunities for businesses in the clean energy sector."

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