@ green | January-February , 2021

NETT ENERGY METERING 3.0

A well-designed policy framework can ensure the long-term sustainability of the solar PV industry and in turn , spawn a green economy which by now is necessary as nations heal from a year-long coronavirus pandemic

Source : SEDA , Dec 24 , 2020

By @ green team

initially announced in Budget 2017 on Oct 5 , 2016 , was finally fully subscribed .

The original nett energy metering ( NEM ) scheme began on Nov 1 , 2016 , and the quota was intended to last until the end of 2020 . Although from 2017-2018 , the growth of NEM was low , a policy change which took effect on Jan 1 , 2019 , helped the uptake of the NEM . The policy change , dubbed NEM2.0 , essentially

Source : KeTSA , Dec 29 2020 changed surplus solar electricity ’ s compensation rate from displaced cost to a 1-on-1 offset .

This change , coupled with the existing government incentives such as the Green Investment Tax Allowances ( GITA ) and the Green Technology Financing Scheme ( GTFS ), helped improve the returns for companies that invested in solar photovoltaic ( PV ) for a rooftop .

Last year turned out to be a year of surprises because , despite the Covid-19 pandemic struggle , the solar PV industry grew spectacularly . Suffice to say that Malaysia is one of the countries within this region with solar PV policies that helped to spawn a green economic recovery .

Business owners post the MCO partial lockdown from March to May realised their solar investment under the NEM was making financial sense as any excess solar electricity was allowed to roll over for 24 months under a 1-on-1 basis .

The excitement for LSS @ MEnTARI did not hamper the take up for NEM2.0 either . As can be seen from the chart from SEDA , the take-up rate in 2020 was overwhelming .

The quota for NEM2.0 was finished a month before the year-end deadline . This created a new demand . On Dec 29 , 2020 , the Ministry of Energy & Natural Resources ( KeTSA ) announced the much-anticipated NEM3.0 . The table below shows the salient features of NEM3.0 .

Conclusion

The government should be lauded for rapid response in formulating NEM 3.0 within a month after the 500MW quota for NEM2.0 was finished .

The solar industry for this Covid-19 period has helped to boost green economic growth and employment . In November 2020 , the International Energy Agency ( IEA ) declared that solar energy is the cheapest form of energy .

In Malaysia , we do have abundant solar technical potential . Despite this low cost of solar energy , Dr Fatih Birol , Executive Director of the IEA , emphasised the roles of policies that will continue to remain critical in driving a vibrant and robust solar PV market .

The NEM3.0 has demonstrated innovation , but further restrictions imposed in the spirit of spreading the pie over a bigger pool of recipients . Moving forward , perhaps there may not be a need for a quota system anymore , thereby not creating the concern of a boom-andbust solar PV industry .

Instead , a well-designed policy framework can ensure the long-term sustainability of the solar PV industry and spawn a green economy necessary as nations heal from a yearlong coronavirus pandemic . — @ green

By CHIN SOO MAU President , MPIA

The NEM 3.0 programme shows that the government is persistent in promoting solar energy in the country .

The Malaysian Photovoltaic Industry Association ( MPIA ) is seeking and waiting for clarifications regarding the NEM 3.0 .

MPIA is also engaging with the Energy Commission and the industry as the NEM 3.0 guidelines have yet to be released .

However , the MPIA hopes that the government would revise the allocated quota from 500 megawatts ( MW ) to 1,500 MW because based on data from the Sustainable Energy Development Authority ( SEDA ), more than 300 MW NEM quota was approved in last year . About 100 MW were approved 2019 . That was a three-fold growth for the industry .

Having only 500 MW allocated for the period of 2021-2023 means that the industry will have negative growth for the next few years . Amid the economic challenges posed by the Covid-19 pandemic , this does not augur well with the industry and the Malaysian economy .

Over the last few years , the solar photovoltaic ( PV ) industry has been on a very positive growth path , both locally and globally . On the domestic front , our local industry players have been expanding their operation and building up their workforce , creating new jobs for the country , now they are confronted with the adverse growth scenario .

Therefore , we propose for the government to increase the NEM quota from 500 MW to 1,500 MW for 2021-2023 to sustain the growth momentum for the industry and the national economy and contribute to the conservation of our environment .