How Solar System Works?

  1. Solar Panels converts Sunlight into Electricity energy.
  2. The Solar Inverter converts the electricity produced by the solar panel from direct current (DC) to alternating current (AC) for household appliances or business uses.
  3. The Network meter records energy usage and excess energy produced.
  4. Excess energy not used by the house or premise is exported back to the Electric Grid.

*illustration for Grid-connected Solar Rooftop System


Net Energy Metering (NEM) Malaysia for Solar Energy 2019 2020

*NEM is regulated by the Energy Commission (EC), with Sustainable Energy Development Authority (SEDA) Malaysia as the implementing agency.

Understanding NEM in 3 Questions

1. What is Net Energy Metering (NEM)?

A mechanism to allow self-consumption of electricity generated by Solar Photo voltaic (PV) system, and sell excess of energy (kWh) to the Electric Grid at an “One-on-one offset” gazetted tariff.

2. What is new with NEM starting Jan 1st, 2019?

“One-on-one offset” is introduced. It means every 1 kWh exported to the Grid will be offset against 1 kWh consumed from the Grid with gazetted tariff.

3. What are the benefits?

It helps your home or business to reduce electricity bills, protect against future energy rising cost. For commercial/business, you would enjoy Green Energy Tax incentives too!


I heard about Solar Tax Incentives, can you share the details?

Commercial & Industrial owner can enjoy up to 48% in Tax Deduction with Solar PV installation. Find out more from here or contact us for more details.

Malaysia Solar Green Tax Incentives
Malaysia Solar Green Tax Incentives