Introduced on 1st November 2016 and valid until 2020, the NEM is a solar photovoltaic (PV) programme applicable to all domestic, commercial and industrial sectors - as long as they are the customers of TNB in Peninsular Malaysia or SESB in Sabah and FT Labuan – that will encourage the deployment of renewable energy (RE) as proposed in the Eleventh Malaysia Plan.
The concept of NEM is that the energy produced from the solar PV system installed will be consumed first and any excess to be exported and sold to the distribution licensee, i.e. TNB/SESB, at the prevailing Displaced Cost prescribed by the Energy Commission. The more energy generated from the solar PV system is self-consumed, the more NEM consumers can save on their electricity bills (by reducing the electricity imported from the utility).