NEM Program extended to Jun 2025 for solar system installation in Malaysia
Malaysia’s Budget 2025 has set a clear path toward a greener and more energy-efficient future. With several initiatives focused on renewable energy and electric vehicles (EVs), there’s never been a better time to invest in solar panels and solar energy systems. Whether you’re looking to cut down on your Tenaga Nasional Berhad (TNB) electricity bill or reduce your carbon footprint, solar energy offers an ideal solution.
Why Solar Energy is Key to Saving on Your TNB Bill
Installing a solar panel system for your home or business can significantly lower your monthly electricity costs. By generating your power through a rooftop solar system, you can reduce carbon footprint, in some cases, can even export excess electricity back to TNB with 1-to-1 offset basis through Malaysia’s Net Energy Metering (NEM) program. The NEM program, recently extended until June 2025 as part of Budget 2025, allows homeowners to offset their TNB bill with the energy their solar panels generate.
New Solar Incentives in Budget 2025
As part of the Solar/RE Initiatives in the 2025 budget, the Malaysian government has rolled out several programs to make solar power more accessible and affordable:
- Keniyir Floating Solar Hybrid Farm and Terengganu’s green hydrogen hub will generate up to 1,000 MW, paving the way for large-scale renewable energy.
- The Large Scale Solar (LSS) program is expanding, with a 2,000 MW quota to be evaluated by December 2024. This means more utility-scale solar farms will be developed, further supporting the nation’s green energy goals.
- The NEM rooftop solar program, extended until mid-2025, is particularly beneficial for homeowners and businesses looking to install solar systems to save on electricity bills.
- CRESS (Corporate Renewable Energy Sourcing Scheme) will make it easier for companies to buy electricity directly from preferred renewable energy providers, reducing operational costs.
These initiatives make solar energy systems more affordable and attractive, especially with the promise of reduced energy bills and increased energy independence.
How Solar Systems Work
A solar panel system converts sunlight into electricity using photovoltaic (PV) cells. By integrating solar power into your home or business, you can enjoy long-term savings and make a meaningful contribution to environmental sustainability.
Solar Panel capture sunlight and convert it into DC (direct current) electricity. An inverter then transforms it into AC (alternating current), the type of electricity used to power homes and businesses. When your solar system produces more electricity than you consume, it is sent back to the TNB grid, lowering your overall bill under the NEM program.
Tax Incentives and Financial Support for Solar Installations
To encourage more Malaysians to adopt solar energy, the government is offering several financial incentives:
- The Green Technology Financing Scheme (GTFS) has been extended with RM1 billion in funding available until 2026, helping reduce the cost of installing solar panels.
- An e-Rebate of up to RM70 million is allocated to promote the purchase of energy-efficient appliances
- The government is also enabling Energy Performance Contracts (EPC) for public agencies, aiming for a 10% reduction in electricity bills through energy-saving technologies.
These incentives make installing a solar energy system a smart investment for those looking to reduce their electricity bills while contributing to a sustainable future.
The Role of Electric Vehicles (EVs) in Energy Savings
Budget 2025 also heavily emphasizes the adoption of electric vehicles (EVs). With incentives such as tax relief for locally assembled CKD EVs and further support for EV charging stations, Malaysia is making EV ownership more affordable. These developments complement solar energy systems, as homeowners with EVs can charge their vehicles using solar power, further driving down their TNB bills.
A Greener Malaysia: Energy Transition and Circular Economy
Malaysia’s Budget 2025 is not just about short-term savings—it’s a comprehensive plan for long-term energy transition. Over RM300 million has been allocated to the National Energy Transition Facilitation Fund, with significant investments aimed at decarbonizing industrial areas. UEM Lestra and TNB will invest RM16 billion to boost energy transmission capacity, ensuring that renewable energy can be distributed more effectively across the country.
Conclusion: Solar Panels as a Long-Term Investment
Incorporating solar panel into your home or business is not just about reducing your electricity bill, it’s about making a lasting investment in the future. With the solar initiatives in Malaysia’s Budget 2025, the government has made it clear that renewable energy, particularly solar, is a national priority.
Whether you’re a homeowner looking to save on your TNB bill or a business aiming for long-term energy sustainability, now is the perfect time to take advantage of the solar incentives and programs in place. By going solar, you’ll not only enjoy significant savings but also contribute to a cleaner, greener Malaysia.
NEM quota increase to how many MWh?
Since NEM will extend to Jun 2025, high chance the additional Quota will be added. The amount of NEM Quota normally will be announced under SEDA website in Jan 2025. Hopefully we can get earlier announcement.
So how much quota will be added for next year 2025?
Is Solaris RM 4,000 incentives still available under NEM 2025?
Thank you for your inquiry.
We are not sure if Solaris will continue in Year 2025 or not. Pending news from TNB.
What we can recommend is to secure the NEM and Solaris this year before the quota ended as we are not sure if there is any Solaris next year…