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Net Energy Metering (NEM)

Net Energy Metering (NEM) is a government initiative introduced to encourage the use of renewable energy, particularly solar power, among Malaysian consumers. The program has a quota allocation of 1450 MW, available from 2021 to 2024.

At Progressture Solar, we have successfully managed over 740 completed and ongoing clean energy projects in Malaysia, resulting in the generation of 78,840MWh of clean energy and the prevention of 59,760 tonnes of carbon emissions annually. Based on our extensive experience within the energy sector, here’s all you need to know about NEM. 

What is NEM 3.0 in Malaysia?

Under NEM 3.0, several new initiatives have been introduced to increase the uptake of solar energy, and it is regulated by the Energy Commission (EC), with the Sustainable Energy Development Authority (SEDA) Malaysia serving as the implementing agency. These initiatives include NEM Rakyat, NEM GoMEn, and NEM NOVA. Additionally, virtual NEM allows commercial and industrial sectors to generate and distribute solar energy.

According to SEDA [1], NEM 3.0 was supposed to run until 2023 with a total quota allocation of up to 1050MW. But today, the NEM 3.0 programme continues with an added quota offer of 100MW for NEM Rakyat and 300MW for NEM NOVA. The offer period will run until 31 December 2024 or until all quotas are allocated.

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Table of Contents: 

  • What is NEM 3.0 in Malaysia? 

  • How does NEM 3.0 work? 

  • Who is eligible for the NEM NOVA programme? 

  • Benefits of NEM NOVA for business owners 

  • Why choose Progressture Solar for NEM? 

How Does NEM 3.0 Work?

Under the NEM program, you can install solar panels on your property and generate your own electricity. Any excess electricity you generate will be fed back into the grid, and you will receive credits for the energy you contribute. These credits can be used to offset your electricity bills.

NEM is available to all Malaysians who generate electricity from renewable energy sources, including solar panels, wind turbines, and biomass systems.

The NEM 3.0 comprises three initiatives as below:  

  • Program NEM Rakyat (Domestic)  

  • Program NEM GoMEn (Government Ministries and Entities)  

  • Program NOVA (Commercial & Industrial)

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Maximise Your Business Savings with NEM 3.0 NOVA! 

~300 MW Quota left for Commercial & Industrial Users 

The NEM NOVA program aims to help commercial and industrial businesses reduce operating costs by adopting solar PV systems. Successful applicants to the program can:


  • CONSUME the electricity generated by their solar PV system.  

  • SELL any excess solar-generated electricity back to the grid at the market rate or System Marginal Price (SMP). The electricity sold will be converted into credits and reflected in the following month's electricity bill. 

  • OFFSET any excess electricity generated by their solar PV system by distributing it among up to three different electricity bill accounts under the same name through virtual aggregation. 

As of today, the previous quota of 150MW for NEM Rakyat and 800MW for NEM NOVA are running out. Hence, the additional NEM NOVA capacity of 300MW of solar quota offers businesses the golden opportunity to lower electricity bills by up to 85%, reduce solar payback period, and create new revenue streams.

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Who is Eligible for the NEM NOVA Programme?

Based on the Malaysia Energy Commission’s guidelines [2], applicants must be non-domestic consumers who are existing or applying to be a consumer of the distribution licensee. Additionally, applicants must meet the following criteria:

  • Not blacklisted in the system for various reasons (such as not paying the electricity bill, committing an offence, etc.)  

  • A registered consumer of the distribution licensee in Peninsular Malaysia only  

  • Not a delinquent who has not paid their bills or is involved in pending meter tempering cases


Benefits of NEM NOVA for Business Owners 


Lower electricity bills


Environmental sustainability 

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Long-term cost savings 


Potential revenue streams


Increased energy independence

Why Choose Progressture Solar for NEM? 

At Progressture Solar, our goal is to construct the most reliable, safest, and highest quality solar PV systems for commercial and industrial buildings. We work with the best brands across the globe to ensure the durability and reliability of every element—from solar panels and inverters to wires and bolts.​

When you choose Progressture Solar for NEM, you can expect:

  • Free consultation to determine if NEM is right for you  

  • Professional installation of your solar panels  

  • Ongoing maintenance and support  

  • Help with the NEM application process  

  • Competitive pricing and financing options 


Talk to an expert today to learn more about NEM or schedule a consultation.

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