FAQ & Downloads

Frequently Asked Questions

Am I eligible to participate to NEM?
Yes, as long as you are a customer of TNB/SESB. The basis is always your electricity bill. Please ensure you are a registered customer of TNB/SESB (your name/ company as appeared in the TNB/SESB bill), only then you are eligible to participate in NEM.
Is a non-local/100% foreign company eligible to participate in NEM?
Yes, as long as he/she/it is a customer of TNB/SESB.
How long is the validity period of the NEM contract?
The NEM contract shall be effective on the day of NEM contract signing with both parties. The NEM contract shall remain in effect unless otherwise terminated by either party or cancellation of the main electricity contract.
What type of the meter are required for NEM?
2 types of meter are required as below: i. TNB/SESB’s bi-directional meter (with import-export feature) to record the amount of electricity consumed, produced or exported; ii.PV meter/data logger/inverter with monitoring feature to record the total amount of electricity generated by the PV system. Optional – May install check meter for measurement of the energy export (if applicable) and shall be of the same or equivalent to the standards of the consumer meter installed at the premises by TNB/SESB.
What is the capacity limit?
For domestic or residential consumers, the allowable maximum capacity of the PV system installed is 12 kWp for single phase system or 72 kWp for 3 phase system. For commercial and industrial consumers, the allowable maximum capacity of the PV system installed is 1 MWp or 75% of maximum demand (whichever is lower) or 60% of fuse rating or 60% of current transformer rating
What happen to the excess energy that I did not consume?

The excess energy will be credited in your usual utility bill. The credit (excess energy) to NEM consumer will be based on prevailing Displaced Cost for the relevant supply voltage level at the Point of Common Coupling.

The calculation for the net billing of electricity will be based on the following calculation:

Net billing = [Energy Consumed from DL (kWh) x Gazetted Tariff] – [Energy Exported to DL (kWh) x Displaced Cost]
Investment Tax Allowance (ITA)

Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred on a green technology project from the year of assessment 2013 (date on which the first qualifying capital expenditure incurred is not earlier than 25 October 2013) until the year of assessment 2020. The allowance can be offset against 70% of statutory income in the year of assessment. Unutilised allowances can be carried forward until they are fully absorbed.

Green technology project related to renewable energy, energy efficiency, green building, green data centre, and waste management can qualify for this tax incentive. Please refer to the Guideline for Application for incentives and/or Expatriate Posts for Green Technology (GT) at www.mida.gov.my for more details.
Capital Allowance (CA)

Capital allowances are deductions claimable for the wear and tear of qualifying fixed assets such as industrial machinery, office equipment and sign boards. Under Capital Allowance, Solar PV system could categorised as Plant & Machinery and is eligible for depreciation over the period of 6 years.

It comprises the following types of provisions:

  • Initial allowance 20% (IA – for the first year allowance)
  • Annual allowance 14% (AA – for subsequent years until the full amount is availed)
  • Balancing allowance; and
  • Balancing charge

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