Open Access
Table 1
Established energy policy schemes within the Malaysian context.
| Policy | Definition | Advantages | Disadvantages |
|---|---|---|---|
| FiT (2011-2016) |
The Feed-in Tariff (FiT) policy permitted users to sell electricity generated from their PV systems directly to the national grid. This involved the installation of two distinct meters as one to quantify the electricity consumed by the user and another to track the electricity produced and subsequently sold to the grid at a predetermined fixed tariff rate [4,7]. | Reduction of CO2 gas emissions and promotion of investment in photovoltaic solar energy technologies [4]. | Imposed increased pressure on the grid due to the continuous export of all PV-generated energy back to the grid by consumers [4]. |
| NEM 1.0 (2016–2018) |
The initial Net Energy Metering (NEM) scheme enabled consumers to generate and primarily utilize solar energy to fulfill their own consumption requirements. Any surplus electricity generated by the PV system was exported to the grid and subsequently credited at a rate of MYR 0.31/kWh, which was then applied as a reduction on the customer's subsequent electricity bill [4,7]. | Benefited consumers with low-load power consumption profiles and alleviated energy stress on the national utility grid, as consumers prioritized self-consumption of PV energy, with only excess generated power being exported to the grid [2,4]. | The policy did not provide substantial financial incentives or significantly enhance the return on investment for PV system installations. Nevertheless, it offered negligible savings for small-scale users [2]. |
| NEM 2.0 (2019–2020) |
This revised policy allowed consumers generating PV energy to export any excess energy to the grid, with each kilowatt-hour (kWh) exported directly offsetting an equivalent kWh on their subsequent electricity bill [4,7]. | This policy offered greater financial savings compared to NEM 1.0. Each kWh exported to the grid was directly credited against the subsequent electrical bill. | This policy did not enable consumers to generate direct income from exported energy and was restricted in applicability solely to users in Peninsular Malaysia who were registered with TNB [4]. |
| NEM 3.0 (2021–2025) |
Similar to NEM 2.0, this scheme introduced the notable provision for indirect grid connections specifically for commercial buildings. The tariff rate for exported kWh is stipulated to be lower than the retail kWh price at which commercial buildings purchase electricity from the grid [4,7]. | Actively incentivizes consumers to maximize their self-consumption of PV-generated electricity as well as facilitates indirect connection to the national grid [2,4]. | The rate at which exported electricity from commercial buildings is compensated is comparatively lower per kWh than the rate at which electricity is purchased from the grid [4]. |
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