Malaysia NOVA program for commercial industrial rooftop solar

Malaysia introduced NOVA program for commercial and industrial rooftop solar in the new NEM 3.0

Malaysia NOVA program for commercial industrial rooftop solar

May 6, 2021

LYS Energy Group

As the NEM2.0 (second generation of the Net Energy Metering – NEM programme) has ended, the NEM scheme has been further enhanced due to the popularity. Establishing NEM3.0, details as announced by Ministry of Energy and Natural Resources (KeTSA) on 29th Dec 2020.

Introduction - NEM 3.0’s Program NOVA
The government introduced the Net Offset Virtual Aggregation Program (NOVA) under the NEM3.0 program, which aims to “provide aid to commercials especially affected financially by the COVID-19 pandemic” in a statement made by Minister Datuk Dr. Shamsul Anuar Nasarah.

Program NOVA is focused on assisting entrepreneurs, small and medium-sized businesses in lowering their energy bills and operating costs while adopting cleaner and greener energy. From 1 Apr 2021 to 31 Dec 2023, or until the quota of 300MW is fully allocated, applications for quota allocation under Program NOVA can be submitted to Sustainable Energy Development Authority (SEDA).

Similarly, to NEM2.0, the NEM 3.0 scheme’s concept allows users to:

  • Generate and consume solar power,
  • export the net excess of solar energy produced to the grid: consumers can export excess of solar energy when business is not operating, during low-peak periods such as the weekends. Unlike on a self-consumption (SELCO) basis, there will be no consumption and energy generated during these periods within the property.
  • and offset the conventional electricity consumed using a ‘one-on-one’ offset mechanism.

Available information on constituents of Program NOVA:

  • The offset will be based on the System Marginal Price (SMP) rate rather than the prevailing tariff. This will be translated into credits, that will appear on the next month’s energy bill.
  • There is an option for virtual aggregation of excess electricity generated by the rooftop solar installation for up to three electricity billing accounts owned by the same person.
  • The capacity limit will be determined by whether the consumer opts for offset only (1MWac) or offset and virtual aggregation (5MWac)

More information on the updated categories can be found on SEDA’s official website.

  • The solar PV installation shall be of PV panels mounted on the rooftop of the buildings within the same facilityFor more information, find out more at SEDA’s official guideline.

LYS Energy Group will further support commercial and industrial users in Malaysia, to be part of this programme and to boost the development of the country’s renewable energy. NEM3.0 shows that solar energy remains Malaysia’s renewable energy focus in their journey towards a low-carbon future.

The Group is dedicated to assisting Businesses in their sustainability ambitions to adopt clean energy solutions. Consult our Malaysia experts for more details: or visit our website at: