Malaysia is making steady progress towards its National Energy Transition aspiration to achieve a 70% RE capacity mix in the country’s electricity supply by 2050.
As rising energy costs loom and pressure to adopt sustainable practices mount, RE systems like solar PVs are becoming increasingly attractive.
National initiatives such as net energy metering (NEM) and self-consumption (SELCO) for residential consumers have been instrumental in this positive development. They offer pathways for maximising energy efficiency and reducing operational costs while supporting environmental concern.
SELCO refers to using energy generated on-site by a RE system, such as solar PV, to meet own usage requirements. This allows users to reduce electricity purchased from the grid, thereby saving on bills in the face of increasing utility prices.
For commercial and industrial (C&I) users, SELCO is useful for businesses with high daytime energy demands, such as manufacturing facilities or commercial buildings. By consuming energy directly as it is produced, businesses can minimise energy wastage and reduce reliance on non-RE sources.
With energy storage technologies, battery solutions can be integrated into SELCO systems. Doing so enables businesses to store excess energy for use during peak hours or at night, further enhancing cost savings and operational efficiency.
Meanwhile, NEM takes the benefits of solar adoption a step further by allowing users to export excess energy generated back to the grid. The value of the excess is credited to the user’s account, offsetting energy bills.
NEM is a government-supported program aimed at accelerating RE adoption. The latest iteration, NEM 3.0, has incentives specifically tailored for the C&I sector. This includes longer contract tenures and higher energy offset rates. This ensures businesses can save costs and even potentially generate revenue from their solar investments.
Additional rooftop solar quota has been allocated under the NEM mechanism. The quota for NEM Rakyat for households is bumped up to 600MW from 450 MW, while NEM Nova for the C&I segment is increased to 1,700MW from 1,400MW.
NEM Rakyat has been particularly well received, especially the Solar For Rakyat Incentive Scheme (SolaRIS). Domestic applications rose to 150 per day from about 100 prior the incentive’s launch in April 2024. The encouraging performance saw an extension of the RM4,000 rebate until 30 April 2025, as tabled during Budget 2025.
Adding to the appeal, those with existing rooftop solar assets under earlier mechanisms can also upgrade and expand their solar system capacity and switch to the NEM programme as well. The NEM scheme is also opened to electricity users in the agriculture category, enabling more Malaysians to benefit.
Malaysia is proactively introducing incentives to make RE adoption more affordable and widespread. In addition to tangible monetary savings for residential and C&I users alike, there is the added benefit of doing right by the environment.
When paired with battery energy storage systems (BESS), RE generated can be stored for use at a later time – think of a giant powerbank for your building rather than gadgets. BESS technology unlocks greater energy security by mitigating potential power outages. It is particularly useful for businesses with energy sensitive operations.
Adopting solar PV aligns with national, regional and global environmental, social and governance (ESG) goals for a greener shared future.
You May Also Find This Helpful :
Malaysia’s SELCO Program 2025: All You Need to Know
Malaysia’s SELCO Guidelines 2025: A Comprehensive Guide to Solar PV Installation with Solar Panels
What Budget Malaysia 2025 Means for Renewable Energy
Solar ATAP 2026: Powering Business Competitiveness
CRESS Enhancements Open Doors for Renewable Energy in Malaysia
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