NEM Malaysia 2026: Net Energy Metering Explained
Everything you need to know about Net Energy Metering (NEM) in Malaysia — how it worked, why NEM 3.0 closed, and what replaced it. Straight answers, current rates, no jargon.
Important: NEM 3.0 is closed to new applications in Malaysia. All new residential solar installations now use the Solar ATAP scheme. If an installer offers you NEM 3.0 enrolment, it is misinformation — verify with SEDA directly.
NEM Malaysia Quick Facts
NEM 1.0
2016 — First net metering scheme, 500 MW quota
NEM 2.0
2019 — 1:1 net offset, improved from NEM 1.0
NEM 3.0 (NEM Rakyat)
2021 — 1:1 with 24-month rollover; closed when quota filled
Solar ATAP
2026 — Current scheme, fixed export rates, monthly credit reset
What is Net Energy Metering (NEM) in Malaysia?
Net Energy Metering is a solar billing arrangement where your solar panels' exports offset your imports, measured by a bi-directional meter installed by TNB. When your panels generate more than your home uses, the surplus flows to the grid and you earn credit. When you need more than your panels produce (at night, for example), you draw from the grid and use up those credits.
Malaysia introduced NEM in 2016 under the Ministry of Energy, Green Technology and Water (now the Ministry of Natural Resources, Environment and Climate Change). SEDA (Sustainable Energy Development Authority) administers the scheme, while TNB handles the meter changeouts and billing.
NEM went through three versions (1.0, 2.0, 3.0) before being effectively replaced by Solar ATAP in 2023 for residential customers. NEM variants for commercial and industrial customers continue under separate rules.
NEM Malaysia Version History
NEM 1.0 (2016–2018)
Malaysia's first net metering scheme, with a 500 MW national quota. Export tariff was below retail — so producers got less per exported kWh than they paid for imports. This made NEM 1.0 unattractive for self-consumers and uptake was slow. Closed after disappointing adoption.
NEM 2.0 (2019–2020)
Introduced true 1:1 net offset — 1 kWh exported offset 1 kWh imported at the same retail rate. This was a big improvement and made solar suddenly attractive for Malaysian homeowners. 500 MW quota, oversubscribed within months. Replaced by NEM 3.0 when quota filled.
NEM 3.0 / NEM Rakyat (2021–2023)
The most homeowner-friendly version. 1:1 net offset with a 24-month credit rollover — meaning any unused credit carried over for up to two years. Included a dedicated residential "NEM Rakyat" allocation. 500 MW residential quota filled rapidly; applications closed in stages. Existing participants retain their terms for the contract duration.
Solar ATAP (2023–present)
The current residential scheme. Switched from 1:1 net metering to fixed export tariffs (RM 0.27 or RM 0.37/kWh) with monthly credit reset. Emphasises self-consumption over exports. Less generous than NEM 3.0 on paper, but still profitable for correctly-sized systems — most homes see 60–90% bill reduction.
NEM 3.0 vs Solar ATAP: Side-by-Side
| Feature | NEM 3.0 (closed) | Solar ATAP (2026) |
|---|---|---|
| Export credit rate | 1:1 with import tariff (RM 0.22–0.57/kWh) | Fixed RM 0.27/kWh or RM 0.37/kWh |
| Credit rollover | 24 months | None — monthly reset |
| Best for | Export-heavy systems | Self-consumption systems |
| Application status | Closed | Open |
| Contract term | 10 years | 10 years |
| Oversizing penalty | None (credits roll over) | High — wasted credits at month-end |
| Battery makes sense? | Rarely — exports pay well | Often — boosts self-consumption |
Is Solar Still Worth It Without NEM 3.0?
Yes. While Solar ATAP is less generous on exports than NEM 3.0 was, the economics still work for most homeowners. Here is why:
- ✓TNB tariffs rose. Electricity import rates are now RM 0.22–0.57/kWh — so avoiding purchase is more valuable than ever.
- ✓Panel prices dropped. Solar hardware is 30–40% cheaper than during the NEM 2.0 era — a 5 kW system that cost RM 35,000 in 2019 is now RM 18,000–25,000.
- ✓Self-consumption is the winning strategy. Solar ATAP rewards using what you generate. Run your AC, washing machine, and EV charging during daylight hours and you offset TNB's highest-tier rates.
- ✓Battery pairing is now cost-effective. LiFePO4 battery prices (Pylontech, Huawei LUNA, BYD) fell sharply — pairing a battery with Solar ATAP can push self-consumption from 40% to 70%+.
- ✓Payback periods still under 8 years. A correctly-sized 5 kW Solar ATAP system typically pays back in 5–7 years, then generates ~RM 130,000 in net 25-year savings.
Calculate Your Solar ATAP Savings
NEM 3.0 is closed, but Solar ATAP is still worth it. See your exact monthly savings and payback period under the current scheme.
NEM Malaysia: Frequently Asked Questions
What is NEM in Malaysia?▾
NEM stands for Net Energy Metering — a solar billing scheme where the electricity your solar panels export to the TNB grid offsets the electricity you import, measured by a bi-directional meter. Malaysia ran NEM 1.0 (2016), NEM 2.0 (2019), and NEM 3.0 (2021). NEM 3.0 is now closed to new applications and has been replaced by Solar ATAP for residential customers.
How does NEM 3.0 work in Malaysia?▾
Under NEM 3.0, your solar system generated electricity you used first. Any excess was exported to the TNB grid and credited at a 1:1 tariff rate (kWh for kWh), with a 24-month rollover window. Unused credits expired after 24 months. NEM 3.0 closed to new applications after reaching its quota — new installations now use Solar ATAP.
What is the NEM tariff rate in Malaysia?▾
Under NEM 3.0, the export tariff was 1:1 with the import tariff — you received credit at the same RM/kWh rate you would have paid TNB for imported electricity. Under Solar ATAP (the current scheme), export is at a fixed rate: RM 0.27/kWh if your monthly usage is ≤1,500 kWh, or RM 0.37/kWh if above.
What is the TNB solar buyback rate?▾
TNB does not directly 'buy back' solar energy in cash. Under the current Solar ATAP scheme, exported energy earns credits at RM 0.27/kWh (≤1,500 kWh monthly usage) or RM 0.37/kWh (>1,500 kWh). These credits offset your next bill, but reset at month-end — so right-sizing your system matters.
Is NEM 3.0 still available in Malaysia?▾
No. NEM 3.0 closed to new applications after reaching its allocated quota. Existing NEM 3.0 participants retain their 1:1 credit arrangement for the remainder of their contract. All new residential applications now use Solar ATAP instead.
What is the difference between NEM and Solar ATAP?▾
NEM 3.0 used 1:1 net metering with 24-month credit rollover. Solar ATAP uses fixed export rates (RM 0.27–0.37/kWh) with monthly credit reset. Solar ATAP rewards self-consumption (using what you generate) more than exports, whereas NEM 3.0 rewarded exports at retail rates. Solar ATAP is still worthwhile — most homes achieve 60–90% bill reduction.
What is the difference between NEM and FiT?▾
FiT (Feed-in Tariff) was Malaysia's 2011–2019 scheme that paid residential solar producers a premium rate for ALL their solar generation (not just exports), locked in for 21 years. It was expensive and closed in 2019. NEM replaced FiT with a cheaper net metering model. Solar ATAP replaced NEM 3.0 in 2023.
How long did TNB NEM approval take?▾
Under NEM 3.0, approval typically took 8–12 weeks from application to commissioning, including TNB meter changeout and SEDA verification. Under Solar ATAP, the timeline is similar — expect 8–14 weeks total for TNB paperwork, installation, and the bi-directional meter changeout.
Can I still apply for NEM 3.0 in Malaysia?▾
No. NEM 3.0 is closed. All residential solar applications now use Solar ATAP, administered by SEDA and TNB. If an installer tells you they can still sign you up for NEM 3.0, they are either confused or misleading you — check with SEDA directly.
What happens to existing NEM 3.0 customers?▾
Existing NEM 3.0 customers continue under their original agreement until the end of their contract (typically 10 years from connection). The 1:1 credit rate and 24-month rollover apply for the remainder. At contract end, customers transition to whatever the current scheme is — likely Solar ATAP or its successor.