Govt To Announce New Programme To Replace NEM 3.0

KUALA LUMPUR, Aug 6 (Bernama) -- The government is currently reviewing the Net Energy Metering (NEM) programme and is expected to announce a new scheme this month, in line with the revised electricity tariff structure to ensure a more equitable distribution of energy subsidies.

Energy Transition and Water Transformation Ministry deputy secretary-general (Energy), Mareena Mahpudz said the government is still finalising a replacement for the NEM 3.0 scheme, which might be a hybrid between NEM and self-consumption (SelCo), or even a new programme altogether.

“As you know, the tariff structure is entirely different starting from July onwards,” she said during a luncheon talk on ‘Driving the Green Energy Transition’ here today.

Also present was Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the Minister of Energy Transition and Water Transformation.

Fadillah said the new programme must be aligned with the new tariff system, and will be designed in a way that gradually shifts away from subsidy dependency.

“We already have SelCo, where you install solar panels for your own consumption. If you add a battery, you can store more solar energy -- extending usage from around three or four hours to as much as seven or eight hours. If that still isn’t sufficient, then you draw the rest from the grid,” he said.

He said another model being considered is the Community Renewable Energy Aggregation Mechanism (CREAM) programme, or aggregated rooftop solar, which benefits communities within a five-kilometre radius.

Fadillah said the programme would empower local groups to manage their own energy systems, adding that through this approach, subsidies can be accessed collectively, enabling communities to build, govern and utilise solar power more effectively. 

“This new approach allows for more inclusive access to solar energy, moving beyond individual ownership and enabling group-based or community energy solutions,” he added.

-- BERNAMA