The Malaysian solar landscape is evolving rapidly. With the introduction of the Solar ATAP program taking over, there has been plenty of discussion regarding offset rates for residential Solar PV System. However, a highly significant update affecting also existing the NEM 3.0 holders—across both commercial and residential sectors—has flown under the radar, and it changes how we should approach solar system design.
The Shift in Offset Mechanics
Effective July 1, 2025, the mechanism for calculating NEM credits was updated.
Previously, if your system exported more energy than you consumed in a given month, the entirety of that exported energy (up to the Maximum Allowable Quantity) would be multiplied by the export rate and converted into a monetary credit to reduce your bill.
Under the updated structure, the monetary offset is strictly capped at the total amount of energy you imported from the grid during that specific billing cycle.
Let’s look at how this applies to both commercial and residential properties:
Commercial Scenario: A recent commercial bill shows a facility importing 1,063 kWh while exporting 2,195 kWh of solar energy. Under the updated calculation, the monetary offset is capped at the 1,063 kWh imported. The remaining 1,132 kWh of exported energy does not convert into an immediate cash credit.
Residential Scenario: This applies similarly to domestic households. A recent residential bill shows a home importing 548 kWh but exporting 659 kWh. Just like the commercial example, the offset is strictly applied to the 548 kWh imported limit.
Understanding the "Baki NEM" Balance
So, where does the excess energy go? The uncredited energy is rolled into an accumulated balance called "Baki NEM". For the residential property mentioned above, this balance grew to 231 kWh.
The critical detail to note is that this balance does not roll over indefinitely. As stated on the TNB bills, the accumulated Baki NEM expires at the end of the calendar year, resetting to zero on December 31st.
Why Precision Matters More Than Ever
In the past, there was a temptation to oversize a solar system—installing as many panels as the roof could hold—to accumulate large monetary credits. This recent tariff update makes that strategy obsolete. If a system is consistently overproducing compared to the site's consumption, the owner will build up a massive balance that ultimately gets forfeited at the end of the year.
This highlights why proper energy auditing is no longer optional. A successful solar integration requires analyzing highly detailed, 15-minute interval load profiles to understand exactly when and how a facility uses power. The goal is to design a PV system that perfectly traces that consumption curve, rather than simply maximizing output.
Are you looking to install a solar PV system, or wondering if your current setup is optimized? Ensure your consultant is sizing your system based on hard data, not just roof space.