Net Energy Metering (NEM) is a system of electricity generation, use and trading that can give renewable energy projects access to the grid. The idea behind this system is to encourage the use of renewable energy power sources by giving them credit for the electricity they generate through their consumption.

• You will consume first the energy generated by your solar PV system for your internal consumption.
• If the energy generated is not fully used, you can supply the excess to TNB grid.
• When solar energy is insufficient or at night when there is no access to sunlight, TNB will supply the energy to you.

By generating your own electricity, you will use less energy from TNB. Therefore, this will help to lower your electricity bill. Additionally, you can obtain NEM credit when you supply the excess energy to TNB. This credit can be used to further reduce your electricity bill.

Solar Energy Purchase (SEP) is an option for TNB customers to buy energy using solar panels owned by a third-party Investor/Asset Owner. SEP is a financial arrangement in which the Investor/Asset Owner owns, operates and maintains the solar photovoltaic (PV) system, whereas the customer acts as the ‘host site’ that purchases and consumes the solar PV system output power for a predetermined period and set energy price with TNB as a contracting and billing entity.

This arrangement allows the customer to purchase energy at a cheaper price than the normal rate taken from TNB, with an option to export the excess energy from solar PV system to the TNB grid to offset their energy bills. The export option is known as Net Energy Metering (NEM). NEM is a scheme introduced by the Energy Ministry to encourage Malaysia’s renewable energy uptake. To understand further on NEM, read more here.