IMPROVEMENTS TO NET ENERGY METERING (NEM) SCHEME AND SELF-CONSUMPTION (SELCO) SCHEMES

ARC News   •  June 28, 2023

Alongside with the recent announcement made by the Ministry of Natural Resources, Environment, and Climate Change regarding the new Imbalance Cost Pass-Through (“ICPT”) mechanism on 23 June 2023, the Ministry has also introduced relaxations to the NEM and SelCo schemes to promote the installation of solar photovoltaic (“PV”) systems. The key initiatives are as follows:

1. Increased maximum capacity for solar PV system installation in residential households under the NEM Rakyat application
Previously, the maximum capacity allowed for each house under the NEM Rakyat application was restricted to 4kW for single-phase and 10kW for three-phase installations. However, with the relaxation of conditions, residential household can increase the maximum capacity of the solar PV system strictly based on technical criteria set by the relevant authority;

2. Expanded maximum capacity for solar PV system installation under the NEM NOVA scheme and SelCo scheme
Previously, the maximum capacity for the NEM NOVA and SelCo schemes was limited to 75% of the maximum demand. However, with the relaxation of conditions, users can now install solar PV systems up to 85% of their maximum demand.

3. Inclusion of High Voltage Consumers in the SelCo Scheme
Previously, SelCo scheme only applied to low voltage and medium voltage consumers. However, the participation of high voltage consumers (above 50kV) is now allowed under the SelCo scheme.

These new initiatives will take effect on 15 July 2023, and the Energy Commission will update its existing guidelines accordingly.

We welcome the aforementioned initiatives by the Ministry as easing maximum capacity limit under the NEM Rakyat, NEM NOVA and SelCo schemes and inclusion of high voltage consumers under the SelCo scheme would encourage active participation in generation of clean energy in Malaysia. We look forward to the updated guidelines from the Energy Commission.

This Article is written by Yeo Shu Pin (Partner) of Messrs. Afif Rahman & Chong

Disclaimer: Every attempt to ensure the accuracy and reliability of the information provided in this publication has been made. This publication does not constitute legal advice and is not intended to be used as a substitute for specific legal advice or opinions. Please contact the authors for a specific technical or legal advice on the information provided and related topics.