Net Energy Metering (NEM) — Green Innotech

Overview

What is Net Energy Metering?

NEM, or Net Energy Metering, is a practice where energy produced by an installed solar PV system is consumed first, with any excess exported to the Distribution Licensee (such as TNB or SESB). From 1 January 2019, an improved NEM mechanism allowed electricity users who had installed solar PV at their premises to reduce their electricity bills and create savings.

Under the improved NEM scheme, the excess energy calculation was based on the one-on-one (1 kWh to 1 kWh) principle. The scheme applied across domestic, commercial, industrial and agricultural sectors, for customers of the Distribution Licensee.

Net-Metering Solar PV system

Installed with a bi-directional meter capable of measuring both import and export of energy.
Connection to the Distribution Licensee network is through an indirect connection.
Applications were handled on a first-come-first-served basis, until the quota was filled.
Maximum capacity of the PV system installed:
- Domestic: up to 12 kW single-phase, up to 72 kW three-phase.
- Commercial / Industrial / Agricultural: up to 75% of the consumer's maximum demand.

Succeeded by Solar ATAP

NEM concluded in June 2025. The Solar Accelerated Transition Action Programme (Solar ATAP) replaced NEM and retains the core net-metering concept with enhanced features.

Learn About Solar ATAP

Advantages

Benefits of Net-Metering

Why NEM was such a popular scheme for property owners across Malaysia — and why the same principles continue under Solar ATAP.

Reduces electricity bills

Generates your own energy first, reducing dependency on the grid and cutting monthly electricity costs.

No battery required

Excess energy is exported to the grid — no need to install expensive battery storage systems.

Bill offset via credits

Exported energy is exchanged for credits that can be used to offset part of your electricity bill.

Relieves grid pressure

Distributed generation helps reduce pressure on the grid during peak consumption periods.

Supports renewable energy

Encourages active participation in alternative energy generation — protecting the environment.

Tax incentives

Capital Allowance (CA) and Investment Tax Allowance (ITA) help reduce cost and improve ROI.

NEM to Solar ATAP

What happens now that NEM has ended?

NEM was such a successful scheme that it was evolved rather than retired — the new Solar ATAP programme retains the net-metering principle, with capacity limits and an offset mechanism that reflect current grid realities.

Existing NEM contract holders should review their status and, where appropriate, plan for the transition. Our team can help audit your current system and map out the right path forward.

See the New Solar ATAP Scheme Talk to Us