NEM 3.0: What We Know So Far

NEM 3.0 or Net Energy Metering 3.0, has been announced by KeTSA (Kementerian Tenaga dan Summer Asli). In total, NEM 3.0 will have a quota of 500 MW until 2023. Full details are yet to be given, so this is what we know so far:

Program NEM Rakyat

Under Program NEM Rakyat, residential properties will be given a special allocation of 100 MW. Furthermore, this program will maintain the same 1-to-1 offset for 10 years, as we have seen in NEM 2.0. Applications will open on 1 February 2021.

Program NEM GoMEn

Similarly, Program NEM GoMEn (Government Ministries and Entities) will see a special allocation of 100 MW for government buildings to adopt solar power. This program also offers a 1-to-1 offset for 10 years. Applications will open on 1 February 2021.

Program NEM NOVA

Program NEM NOVA, or Net Offset Virtual Aggregation, is a new program introduced for commercial and industrial properties. This program will allow excess electricity to be sold to the grid at market price, or “System Marginal Price” (SMP). In addition, businesses will be allowed to offset their electricity bills through “virtual aggregation” for up to 3 bill accounts under the same name. Program NEM NOVA will have a quota of 300 MW. Full details on SMP and virtual aggregation are yet to be released. However, full details should be released before applications open on 1 April 2020.

Improvement For NEM 2.0 Users

NEM 2.0 users were understandably unhappy by the sudden announcement of a 10 year expiry for their NEM contract. Resulting from this, KeTSA will allow NEM 2.0 users an additional 10 years under SMP rate. 

More updates will follow as we get them…


KeTSA has published some details on how NEM 3.0 mechanism will work, as summarised in the following:

Net Energy Metering 3.0

1. Press release by KeTSA entitled “Program Net Energy Metering 3.0 (NEM 3.0) Tawar Kuota Solar 500MW Untuk Laksana 3 Inisiatif Baharu”
2. The Edge Markets news report
3. The Star news report
4. Berita Harian news report