NEW UPDATE (October 2025)
The Ministry of Energy Transition and Water Transformation (PETRA) has announced a new scheme to replace NEM 3.0. The initiative, called the Solar Accelerated Transition Action Programme (Solar ATAP), is built for long-term sustainability — unlike previous programmes that were limited by quotas and fixed contract periods.
[Read more about Solar ATAP here.]
The momentum for residential solar energy in Malaysia has reached a significant milestone. As of May 23, the residential rooftop solar quota under the Net Energy Metering programme (NEM Rakyat Quota 3.0) has been fully taken up, according to data from the Sustainable Energy Development Authority (SEDA).
With 599MW applied and 580MW already approved out of the 600MW allocated, this signals growing awareness and adoption of clean energy among Malaysian homeowners.
Source : SEDA Gov Portal
What Is NEM Rakyat?
NEM Rakyat is one of three key categories under the NEM 3.0 programme, introduced by the Ministry of Energy Transition and Water Transformation (PETRA). The initiative was launched to encourage solar rooftop installations across the residential, commercial, industrial, and government sectors.
Under NEM Rakyat, excess electricity generated from residential solar PV systems is exported back to the TNB grid and credited against the homeowner’s electricity bill — making solar a cost-saving, sustainable solution for households.
NEM Rakyat Quota – Will It Be Renewed?
While the future of the NEM Rakyat quota remains uncertain, past extensions — including the most recent on 25 November 2024 — reflect strong public demand for solar adoption. Solartech will continue to monitor developments and keep our customers informed on any updates or new opportunities.
For latest updates on NEM Rakyat visit Sustainable Energy Development Authority (SEDA) Malaysia
Quota Status Update
Here’s the latest breakdown of NEM 3.0 quota allocations and approvals:
NEM Rakyat (Residential):
✅ 600MW quota fully applied, with 580MW approved.
NEM GoMEn (Government Buildings):
🔹 82MW applied out of 100MW quota
🔹 67MW approved
NEM NOVA (Commercial & Industrial):
🔹 1,169MW applied out of 1,700MW quota
🔹 1,117MW approved
What’s Next for Homeowners?
While NEM Rakyat is currently fully subscribed, it’s uncertain whether the government will extend the quota. However, new alternative programmes have been introduced to support residential solar adoption:
1. Community Renewable Energy Aggregation Mechanism (CREAM):
The Community Renewable Energy Aggregation Mechanism (CREAM) allows multiple residential users to participate in a shared solar energy system. Under this scheme, the electricity generated can be virtually aggregated and credited to participating homes. However, users will incur a 15 sen/kWh fee for using the TNB distribution grid.
The Community Renewable Energy Aggregation Mechanism (CREAM) is suitable for landed property owners who wish to lease their rooftop space to third-party energy suppliers for renewable energy generation. The generated electricity can then be supplied to local green consumers, such as those in commercial and domestic buildings, within a 5km radius.
2. Self-Consumption (SelCo)
With SelCo, you can utilize 100% of the electricity generated by your solar PV system for your own use. Instead of exporting excess energy to the grid, it is stored in a solar battery for later use — a popular solution for off-grid homes.
Maximize self-consumption by storing the surplus solar power into the battery during the day and using it at night, which maximizes the solar energy self-consumption rate. At Solartech, we offer customized solar battery storage systems tailored to meet your unique energy needs. Refer to the video below to see how does a solar battery system work.
NEM NOVA for Businesses:
NEM NOVA (Net Offset Virtual Aggregation) is a solar energy initiative under Malaysia’s NEM 3.0 programme designed for commercial and industrial users. With NEM NOVA, the energy generated from your solar PV system is used first to power your own premises. Any excess electricity is exported to the TNB grid and credited to your account, helping to offset future electricity bills. Businesses can also share these credits with up to three other accounts under the same company, making it a powerful way to reduce operational costs across multiple sites.
For commercial and industrial property owners, this programme offers the best of both worlds — energy savings and the ability to export excess power to offset bills
What This Means for You?
If you’re a homeowner who missed the NEM Rakyat window, now’s the time to explore alternative solar programmes like SelCo or CREAM, while keeping an eye out for any upcoming NEM extensions.
For businesses, there’s still a large portion of the NEM NOVA quota available. Now is the perfect time to invest in solar and enjoy long-term energy savings, lower tariffs, and enhanced ESG credentials.
Need Help Navigating Your Solar Options?
Whether you’re a homeowner, business, or government facility, Solartech is here to guide you through your solar journey — from consultation to installation and maintenance.
Contact our solar specialists today for a free quote and site visit.
