‘NEM 3.0 to be better if quota allocation was revised upwards to 1GW’

KUALA LUMPUR: Since there is more awareness, adoption and demand from the market for solar energy, the quota allocation of 500 megawatts (MW) for the new Net Energy Metering (NEM) 3.0 would have been even better if it was revised upwards to 1 GW as solar has already evolved.

Plus Solar Systems Sdn Bhd co-founder and chief executive officer Ko Chuan Zhen said this was given past precedence in NEM 2.0, which was a resounding success in the renewable energy industry, as the 500MW quota was fully subscribed weeks ahead of the scheme’s expiry date of Dec 31, 2020.

“The government is far sighted in continuing in NEM 3.0 which will certainly encourage more individuals and corporates to align towards the United Nations Sustainable Development Goals (UN SDGs) and uphold our nation’s goal to meeting overall sustainable development and combating the effects of climate change.

“That being said, for NEM Net Offset Virtual Aggregation (NOVA) for commercial and industrial buildings, it is a system marginal price where the export rate is not as attractive compared to the 1:1 offered by NEM GoMEn (Government Ministries and Entities) and NEM Rakyat,” he said.

Ko said while the official guidelines have yet to be announced, it would have been better to allocate 1:1 or more to encourage the adoption of solar among manufacturers and such.

“This is after all, the direction which the country is heading towards, especially in meeting overall sustainable development standards as outlined in Budget 2021,” he added.

In December 2020, Energy and Natural Resources Minister Datuk Dr Shamsul Anuar Nasarah announced NEM 3.0, which effective from 2021 to 2023 would have three new programmes – NEM Rakyat, NEM GoMEn and NOVA. Under NEM Rakyat, residential users, who have installed the photovoltaic (PV) system, will enjoy an offset rate of “one-toone” for 10 years and they will practise the concept of selfconsumption after the period ends.

The one-to-one offset ratio means that one credit equals up to RM0.51 per kilowatt for domestic tariffs.