THE government’s move to increase the solar quota under the Net Energy Metering (NEM) program for the NEM Rakyat category is very important for the Malaysian solar industry.
Managing Director of Gading Kencana Sdn. Bhd., Datuk Ir Guntor Tobeng said that the NEM Rakyat can stimulate market demand because it is an incentive for domestic consumers to install photovoltaic (PV) solar systems because it can be offset with energy supplied by Tenaga Nasional Berhad (TNB).
He said that in this way it will help reduce their electricity bills every month which will help increase the demand for solar systems in the residential sector.
“This will drive the growth of solar system providers and related services,” he said.
Guntor, who is also the Chief Executive Officer (CEO) of the Faculty of Engineering and Electrical Universiti Malaysia Perlis (UniMAP), said this in response to the announcement by the Ministry of Energy Transition and Water Transformation (PETRA) that the quota for the Net Energy Metering (NEM) Program for the domestic category or NEM Rakyat will be increased by another 100MW, bringing the total quota under NEM Rakyat since its implementation in 2011 to 600MW.
PETRA in a statement said that this additional quota is open to all domestic category users of Tenaga Nasional Berhad (TNB) until June 30, 2025 or until all quotas are distributed, whichever comes first.
He said that the PETRA announcement will also help small entrepreneurs save on electricity expenses where tariffs will increase by 14 percent this July.
“The addition of this NEM quota will help mitigate their use of solar energy more economically,” he said.
According to Guntor, the addition of the quota also helps support the local solar industry where this program opens up space for local contractors and technicians to obtain more installation projects.
“Local manufacturers to produce PV system components such as panels and inverters and assist in the development of supporting industries such as energy monitoring and maintenance.
In addition, he said, it will also help increase the economy of scale of the country’s photovoltaic solar industry driven by the active participation of domestic consumers.
Thereby, he said, it will provide space for new innovations that will help reduce the cost of solar systems through economies of scale.
“When economies of scale are more investments in R&D and technological innovation can occur as the market grows,” he said.
He also said the increase in quota will contribute to the development of renewable energy in the country as it supports the Malaysian Renewable Energy Action Plan (MyRER) and the aspiration of Carbon Neutrality by 2050.
“The increase in NEM Rakyat quota will not only benefit individual consumers through electricity bill savings, but also be a catalyst for the growth of the local solar industry.
“It creates a sustainable ecosystem that combines the people, industry, and national policies towards a clean energy future in Malaysia,” he said. – SM