On July 15, 2023, the Malaysian Energy Commission released updated “Guidelines on the Connection of Solar Photovoltaic Installation for Self-Consumption” and “Guidelines for Solar Photovoltaic Installation Under Nova Programme in Peninsular Malaysia.” The two guidelines were developed by the Energy Commission under the Electricity Supply Act of 1990. The former explains how and under what conditions to install a solar photovoltaic system for self-consumption, and the latter explains the Nova programme for the industrial and commercial sectors that allows users to offset electricity costs based on the excess power generated by a solar photovoltaic system for self-consumption. These are aimed at promoting solar power generation in Malaysia as part of the Net Energy Metering 3.0 (NEM 3.0) scheme.
The main contents of each are as follows:
Guidelines on the Connection of Solar Photovoltaic Installation for Self-Consumption
When installing a photovoltaic power generation system, consumers are required to perform due diligence on the following items. The following items are also explained in this guideline.
- Understand the electricity consumption of your premises or businesses and choose the right size system for your needs.
- Understand the electricity tariffs since the decision for investing in a solar PV system will depend on what electricity tariffs been imposed by the licensee’s company and how these may change once the solar PV system is installed.
- Find a solar PV installer with competency certified by the Commission and make sure the installer has the relevant experience in designing, constructing and commissioning the system.
- Survey and make comparison on the products to be purchased and workmanship guarantees since there is a diverse range of products on the market.
- Engage with the Sustainable Energy Development Authority (SEDA) early to understand grid connection requirements if the consumer intends to participate in Net Energy Metering Scheme.
In addition, these guidelines also specify license requirements for registration and installation of solar power generation systems. In the case of a stand-alone system, there is no capacity limit, but in the case of a non-stand-alone system, the capacity must be lower than 85% of the current maximum demand.
Guidelines for Solar Photovoltaic Installation Under Nova Programme in Peninsular Malaysia
In the Nova programme proposed in this guideline, participants in this program (non-domestic consumers such as industrial and commercial sector consumers) can offset the electricity bill for the following month by sending the excess amount to the transmission network if the amount of electricity generated by the installed solar photovoltaic system exceeds the on-site demand amount. However, the excess amount can only be offset with the next month’s amount, and is not allowed to be carried forward to the following month.
In addition, there are two categories in the programme.
- Category A: The excess electricity generated by the participant in the programme can be used to offset the participant’s own electricity bill. The installation conditions of the solar photovoltaic system are 85% or lower of the maximum power demand of the site, and a capacity of up to 1,000 kW can be installed.
- Category B: The excess electricity generated by the participant in the programme can be used to offset the cost of electricity at up to three designated sites. Designated sites shall include sites of subsidiaries. The installation conditions are 100% or lower of the maximum power demand of the site, and a capacity of up to 5,000 kW can be installed.
The total capacity allocated to this program is 800 MW, and the application period is from April 1, 2021 to December 31, 2023 on a first-come, first-served basis. In addition, the implementation period of the programme is ten years from the date of installation of the applicant’s solar photovoltaic system, and after that, only self-consumption is allowed without sending power to the power transmission network. The guidelines must be followed when participating in the program.
NEM 3.0 was introduced in collaboration with the Energy Committee, the Ministry Of Natural Resources, Environment And Climate Change, and the Sustainable Energy Development Authority. In order to expand solar photovoltaic power generation in the country, Malaysia has prepared several programmes to promote the installation of solar photovoltaic systems for all types of consumers. In addition to the above Nova programme, NEM Rakyat for general households and NEM GoMEn for government buildings are also being implemented.
The two guidelines can be downloaded from the following URLs:
- Guidelines on the Connection of Solar Photovoltaic Installation for Self-Consumption
- Guidelines for Solar Photovoltaic Installation Under Nova Programme in Peninsular Malaysia”
- The information and application method for NEM 3.0 can be checked on the following Sustainable Energy Development Authority website.