Frequently Asked Questions

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Tell me more how solar PV system works

Solar panels work by absorbing sunlight with photovoltaic cells, generating direct current (DC) energy and then converting it to usable alternating current (AC) energy with the help of inverter technology. AC energy then flows through the home’s electrical panel and is distributed accordingly. Here are the main steps for how solar panels work for your home:

  1. Photovoltaic cells absorb the sun’s energy and convert it to DC electricity
  2. The solar inverter converts DC electricity from your solar modules to AC electricity, which is used by most home appliances
  3. Electricity flows through your home, powering electronic devices
  4. Excess electricity produced by solar panels is fed to the electric grid

How Solar Power Works

What happens to solar energy when I'm not at home?

There is a possibility that the solar production is more than your energy consumption. Excess energy generation will flow to TNB grid. If you are under Net Energy Metering Scheme, we will buy the excess energy and credit back to your electricity account.

How do I maintain solar PV system?

Malaysia is blessed with rain all year round. Rain will wash away the dirt on the solar PV system. Nonetheless, we recommend periodic inspection by solar service provider to ensure all in good condition. We offer periodic maintenance package so you can sleep peacefully at night.

How long does the solar PV system last?

Typical life span of solar PV panels is 25 years or more and 5 to 10 years for the inverter. Basically, the manufacturer will guarantee performance of the solar PV panels for 25 years. 

Is the solar PV system safe?

We cannot emphasize more on the importance of choosing qualified solar PV installer. Quality material, good installation and maintenance ensure that your solar PV system is safe. In addition, please ensure only solar experts handle your solar PV system.

What is NEM?

Net Energy Metering is a mechanism where an eligible consumer installs a solar PV system primarily for his own use and the excess of energy (kWh) to be exported to the grid and to be offset against kWh from the energy provided by the Distribution Licensee (TNB) to the electricity consumer during the applicable billing period (Effective 1st January 2019).

Is NEM the same as FIT?

No it is not. FiT or Feed-in Tariff is a mechanism for granted selected customers to export all solar energy produced to TNB grid and the quota has long been fulfilled for solar. The main difference is NEM mechanism allows you to generate your own energy and use it to reduce electricity bill. You can sell the excess energy to TNB and we will offset it in the next electricity bill. 

The Feed-in Tariff (FiT) for Solar PV has been implemented in Malaysia since 2011 and it is already closed for registration since 2016.

How do I apply for NEM?

You can contact us either via live chat, email or can just call us. We are a licensed and registered solar PV installer with SEDA.

What is one-on-one offset?

One-on-one offset means every 1kWh exported to the grid will be offset against 1 kWh consumed from the grid with gazetted tariff. The export charges are charged in decending order (start from the highest applicable rate).

Who can apply for NEM?

Registered consumers of Tenaga Nasional Malaysia (TNB) in Peninsular Malaysia.

Not blacklisted (No outstanding bill & meter tampering)

Open to all categories of TNB consumers under the following tariff*:

  1. Domestic/Residential (Kediaman)
  2. Commercial (Komersial) [inclusive of government buildings]
  3. Industrial (Perindustrian)
  4. Agriculture (Pertanian) Effective from 1st January 2019

* Refer to TNB consumers electricity tariff

The resource for producing electricity shall be from Solar Photovoltaic (PV) only.

What types of installation are eligible under NEM?

Installation types:

  • on rooftop of buildings
  • on garage, car park or similar buildings

Note : For ground-mounted system, it may be allowed on case-by-case basis and the installation shall be within the compound of the applicant’s premises and approved by the Energy Commission.

What is the maximum capacity that one can apply for?
  • 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, industrial and agricultural consumers, the allowable maximum capacity of the PV system installed is 75% of maximum demand or 60% of fuse rating or 60% of current transformer rating.
How can I apply for NEM?

Applications can be made via eNEM system. NEM applicant shall appoint SEDA’s Registered PV Service Provider (RPVSP) for NEM application submission. You may contact us for consultation.

Am I eligible to participate in NEM?

Yes, as long as you are a customer of TNB. The basis is always your electricity bill. Please ensure you are a registered customer of TNB (your name/ company as appeared in the TNB bill), only then you are eligible to participate in NEM.

If I plan or have installed Solar PV system for self-consumption (SELCO) and have taken the necessary steps to ensure no reverse flow or energy exported to the grid, do I need to apply for NEM?

No, but for PV system with capacity above 72 kWp, generation license (private) from ST is required and subject to complying with the relevant rules under the Electricity Supply Act (ESA). For more information please refer to the Guidelines on the Connection of Solar Photovoltaic Installation for Self-Consumption issued by ST.

Is a non-local / 100% foreign company eligible to participate in NEM?

Yes, as long as the company is a customer of TNB.

How is the connection between the consumer’s solar PV system and the DL distribution system?

The connection to the TNB network shall be done only through indirect connection, i.e. within the owner’s internal distribution board only.

What types of incentives are available for NEM consumers?

At the moment there are fiscal incentives offered to eligible companies in the form of Green Technology Incentive by Malaysia Investment Development Authority (MIDA), available until 2020.

Is there any tenure of the new NEM contract between TNB and roof owner?

There is no tenure period between the new NEM and old NEM. The NEM contract shall remain in effect unless otherwise terminated by either party or cancellation of the main electricity contract.

Will the owner be able to cash out for excess of power generated each month or just get credit for next month use?

Any excess of solar power generated is allowed to roll over within 24 months from the start of NEM consumer’s billing system. No cash will be paid in the NEM scheme.

What is NEM Assessment Study (NEMAS)?

The study will determine the technical impact to the Distribution Licensee’s electricity distribution network and establish technical and safety requirements that may be necessary for the installation.

Is ST License required under NEM?

Only applicable for solar PV system installation:

  • above 24kW for single phase; and
  • above 72kW for three phase

Any person who uses, works or operates the installation shall require a license as stipulated under the ST “Guidelines on Licensing Under Section 9 of the Act”.

What are the required information & documents for NEM application?

Information :

  • Applicant’s Profile
  • Project information
  • Technical information
  • Proposed work plan

Documents :

  • Single Line Diagram (SLD) endorsed by Competent Person;
  • Latest electricity bill
  • Load Profile Report
  • NEMAS or PSS Report
  • Document proofing site ownership
What is Supply Agreement with Renewable Energy (SARE) and where can I get more information about it?

There will be a tri-partied agreement between the three parties (Customers Solar Investor/Lessor and TNB). TNB will provide the service of billing, collection and remittance of the payment by customer to solar investor/lessor and in return, TNB imposes a small service charge. The business models supported by SARE includes solar leasing, PPA or a hybrid of both.

Can I reduce electricity cost by going solar?

Yes. But savings typically depending on your solar PV system size, financing option, actual solar energy production and system performance.

What are the factors that determine how much I can save by going solar?

Many factors determine solar energy production. For example, if there is shading on your roof due to tall building or trees, this will reduce the amount of your solar energy production. Cloud and rain will also reduce how much energy being produced.

Is there any government tax incentives for going solar?

Yes. If you are a business owner (for Commercial, Industrial & Agriculture), you are eligible for Investment Tax Allowance (Check out MIDA website here) and Capital Allowance from LHDN. However, this is only applicable if you finance your solar project either through cash, loan or lease and not through Solar Energy Purchase.

Can I install at my parents' home?

Of course you can. That will bring sunshine to their home.

Can I install solar if I'm renting?

Sorry but not yet for now. 

What is the process of getting solar energy?

Once we receive your registration, we will check site suitability. When we know all in good condition, we will install the solar.

My house is under construction. Can I apply now?

Yes, it will be good to include solar installation work in the construction plan.

What is the warranty period on the solar solutions?

Generally, we provide 25 years of solar PV module of performance guarantee, 10-12 years of solar PV module and product warranty, 1-3 years of free maintenance package (for cash/credit card purchase), 1 year of workmanship warranty.

Still have a question?

We’d love to help you. Please contact us for more information.

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