Solarisation Schemes in Malaysia
Many programs and incentives exist in Malaysia to encourage business owners and homeowners to adopt renewable energy, especially solar power.
Corporate Renewable Energy Supply Scheme (CRESS)
The Corporate Renewable Energy Supply Scheme (CRESS) in Malaysia aims to help businesses and corporations procure renewable energy directly. Operating under a Third-Party Access model, companies can source green electricity from renewable energy developers through the national grid.
Open access to Malaysia's grid network system enables CRESS participants to supply or purchase electricity with a predetermined system access charge.
Effective 1 March 2025, CRESS will be open to new and existing TNB commercial and industrial consumers operating at medium or high-voltage levels. Previously, it was only applicable for new or additional demand.
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 2400 MW, available from 2021 to 2025. NEM 3.0 comprises of the following three initiatives:
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Program NEM Rakyat (Domestic)
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Program NEM GoMEn (Government Ministries and Entities)
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Program NOVA (Commercial & Industrial)
The Self-Consumption (SELCO) programme enables businesses or homeowners to install a solar PV system onto their own rooftop and fully utilise all the solar energy generated from it. Any excess will not be exported to the grid.
From 1 January 2025, SELCO will allow ground-mounted and floating solar installations, remove capacity limits for non-domestic users, and extend to the agricultural sector.
SARE is a programme that covers the related agreements and policies for supplying and consuming Renewable Energy (RE) in Malaysia. This Supply Agreement of Renewable Energy is a tripartite agreement between a third-party investor/owner, customer and TNB (TNBX as its billing agent).
This agreement will outline the contract years, the solar sen/kWh price , the covenants and obligations of all parties under the tripartite agreement. The SARE agreement is endorsed by the Energy Commission (ST) of Malaysia and Sustainable Energy Development Authority (SEDA).
The Corporate Green Power Programme (CGPP) allows corporate consumers to virtually purchase solar energy directly from solar developers.
Traditionally, businesses that are interested in utilising solar energy would have to invest in the physical ownership and management of solar panel installations. However, CGPP revolutionises this approach by introducing Virtual Power Purchase Agreements (VPPAs). Through VPPAs, corporate consumers can participate in the renewable energy movement without the responsibility of maintaining and operating a solar PV system.
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