Malaysia to Maintain Rooftop Solar Offset Mechanism Under New Tariff Structure

Malaysia’s Energy Transition and Water Transformation Ministry(PETRA) has announced that Malaysia will continue supporting rooftop solar users by maintaining the energy offset mechanism.

As the new electricity tariff structure officially comes into effect on 1 July 2025, a more detailed and segmented method for calculating charges has been introduced.

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. These updates will effect more than 96,000 users nationwide, with over 82,000 rooftop solar PV systems currently in operation and another 14,000 in development.

The Ministry said about 1.7GW of PV systems are currently operating under the two programs, with an additional 595MW under development.

Under the revised framework, PV system owners in the MBIPV scheme will receive energy bill credits through the end of 2030.

The surplus solar tariff will now include energy, capacity, and network charges, rather than covering only energy charges as previously planned.

For the NEM mechanism, users under NEM 1.0 will receive credits until the end of 2035. Those under NEM 2.0 and NEM 3.0 will be eligible for credits for 10 years from their grid connection date. Malaysian authorities will calculate the net metering tariff annually based on criteria aimed at ensuring “fair” treatment for all electricity consumers.

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).