The Ministry of Energy Transition and Water Transformation (PETRA) has announced that Malaysia will continue supporting rooftop solar users by maintaining the energy offset mechanism. The policy update reinforces PETRA’s commitment to Malaysia’s broader renewable energy goals, including achieving 70% renewable energy capacity in the national electricity mix by 2050.

As of today (1 July 2025), a new electricity tariff structure has officially come into effect, introducing a more segmented and granular way of calculating charges. In tandem with this shift, PETRA has outlined revised offset rules for users under the Malaysian Building Integrated Photovoltaic (MBIPV) and various phases of the Net Energy Metering (NEM) schemes. It added that these updates affect more than 96,000 users nationwide, with over 82,000 rooftop solar PV systems currently in operation and another 14,000 in development. 

Offset Provisions By Programme

MBIPV and NEM 1.0 Users

• MBIPV: Offset applies to energy, network, and capacity charges. Valid until 31 December 2030.
• NEM 1.0: Offset based on displaced cost set by the Energy Commission. Valid until 31 December 2035.
  

NEM 2.0 Users

• Domestic: Energy, network and capacity charges offset for 10 years from system activation.
• Low Voltage: Energy, network and capacity charges offset for 10 years from system activation.
• Medium/High Voltage: Offset on energy, 1/4 network and 1/4 capacity – the latter two also based on export-to-import ratio. Valid for 10 years.

NEM 3.0 Users

• NEM Rakyat: Energy, network, and capacity charges offset for 10 years.
• NEM GoMEn (Low Voltage): Energy, network, and capacity charges offset for 10 years.
• NEM GoMEn (Medium Voltage): Offset ion energy, 1/4 network and 1/4 capacity charges – the latter two also based on export-to-import ratio. Valid for 10 years.
• NEM NOVA: Offset based on the Average System Marginal Price (ASMP).

To streamline billing, all rooftop solar users now fall under a unified 12-month settlement period, replacing the previously varied timelines. Additionally, energy efficiency incentives will be recalibrated to ensure consistency and fairness across different programme tiers.

For existing users whose offset period has expired, PETRA states they may transition to other rooftop solar programmes such as the Solar for Self-Consumption (SelCo) scheme, the Community Renewable Energy Aggregation Mechanism (CREAM), install energy storage systems, or participate in future government initiatives. New solar adopters are also advised to consider these options.

What It Means For Solar Users And Those Yet to Install

Here’s the TL;DR: For early adopters under MBIPV, NEM 1.0, and NEM 2.0, PETRA’s updated policy largely preserves the benefits they initially signed up for. These users can continue to offset electricity costs with the surplus energy they export to the grid, with their respective offset periods and covered charges remaining intact. This continuity provides financial stability and predictability in terms of bill savings for the remainder of their contract durations.

For users under NEM 3.0, the updated announcement offers clearer terms. Both NEM Rakyat and NEM GoMEn (Low Voltage) users are entitled to offset energy, network, and capacity charges for a period of 10 years. Meanwhile, NEM GoMEn users on Medium Voltage systems will have their exported energy offset against energy charges in full, and against one-quarter of both network and capacity charges, with these latter components calculated based on the export-to-import energy ratio. As for NEM NOVA, offsetting is determined based on the Average System Marginal Price (ASMP).

For those who have yet to install rooftop solar systems, the outlook is more complex. With the Net Energy Metering (NEM) scheme recently concluded, new users will no longer be able to export surplus energy for bill credits. Opting for the Solar for Self-Consumption (SelCo) programme, will requires users to utilise all generated electricity onsite.

PETRA’s announcement also comes amid concerns from the public, especially within the Solar Net Energy Metering (NEM) DIY Malaysia Facebook group. One user, Kok Siong Lee, warned that the new billing model deviates from expectations originally set in NEM agreements, which were based on offsetting all three cost components. He added that the policy shift has caused many prospective adopters to delay or cancel their installations, citing a loss of confidence in the consistency of government policy.

(Source: PETRA, via Facebook)

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