Lately, The Energy and Natural Resources Ministry (KeTSA) has announced the Net Energy Metering (NEM) 3.0 programme, to provide an opportunity for more users to install the solar photovoltaic (PV) systems on the roofs of their respective buildings for electricity bill reduction.
The NEM 3.0 program will be available from 2021 till 2023 with a quota of 500MW for three (3) new initiatives to further boost the uptake of solar adoption.
The three main initiatives are: –
1. NEM Rakyat Program
2. NEM GoMEn (Government Ministries and Entities) Program
3. NOVA (Net Offset Virtual Aggregation) Program
1. NEM Rakyat Programme – is now open for applications.
Under NEM Rakyat Programme, residential properties will be given a special allocation of 100 MW. This program will maintain the same 1-to-1 offset for 10 years; Roll-over period is for 12 months. The maximum solar PV system size a homeowner is allowed to install is 4kWac and 10kWac for single phase and three phase homes, respectively.
2. NEM GoMEn Programme – is now open for applications.
For NEM GoMEn (Government Ministries and Entities) Programme, KeTSA has allocated a special allocation of 100 MW for government buildings to adopt the solar power. This program is also offering a 1-to-1 offset for 10 years. The Roll-over period is for 12 months. The maximum solar PV system size allowed is 1MWac per account.
3. Program NEM NOVA
NEM NOVA, or Net Offset Virtual Aggregation, is a new programme introduced for commercial and industrial properties. Successful applicant of NOVA Programme enables to:
i. CONSUME the electricity generated with a solar PV system
ii. SELL excess electricity (generated with a solar PV system) back to the grid at market rate or System Marginal Price (SMP). The electricity sold will be converted to credits and will be reflected in the following month’s electricity bill.
iii. OFFSET excess electricity (generated with a solar PV system) by distributing it through virtual aggregation up to 3 different electricity bill accounts under the same name.
The NOVA Programme will have a quota of 300MW with a 10-year contract term for successful applicants. The applications will open on 1 April 2020.
Please refer the summarize table below to understand the NEM mechanism