Malaysia ended new Net Energy Metering (NEM) 3.0 applications on 30 June 2025. While existing NEM 3.0 participants will keep their credits for ten years from commissioning, everyone else now turns to SelCo, corporate power-purchase agreements, or forthcoming policies. This article outlines the current landscape, incentives that still apply, service options, and how to pick a trustworthy solar provider.

1. Malaysia’s Solar Market in 2025

• Total installed PV capacity: ≈ 4.4 GW by end-2024, up 1.3 GW year-on-year.
• Average solar irradiation: 4.2 – 5.6 kWh /m²/day—ideal for rooftop PV.
• LCOE for utility-scale PV: < 19 US ¢/kWh, among the most competitive in ASEAN.
• Government target: 31 % installed renewable-capacity share by end-2025 under MyRER.

2. Policy & Incentive Update (Post-NEM 3.0)

2.1 NEM 3.0 (Closed)

NEM 3.0’s quota window closed on 30 June 2025. Key points:

• Credits for existing NEM 3.0 systems (Rakyat, NOVA, GoMEn) remain valid for 10 years from their commissioning date.
• Applications submitted before 30 June 2025 are still processed until quotas are fully allocated.
• No official successor (e.g., “NEM 4.0”) has been announced as of 13 July 2025.

2.2 SelCo (Self-Consumption)

SelCo now serves as the default route for residential, commercial and industrial customers who missed the NEM deadline. Under SelCo, you:

1. Generate electricity for onsite use.
2. Cannot export power to the grid; oversizing must be limited.
3. Benefit from lower CAPEX rules and simplified permits.

2.3 Large-Scale Solar (LSS 4 & New 2 GW Tender)

Utility developers can bid for capacity under the ongoing LSS 4 programme (COD 2026) and a new 2 GW tender issued in January 2025.

2.4 Other Incentives

• SolaRIS rebate for homeowners (up to RM 4,000) ended on 30 April 2025.
• Green Investment Tax Allowance (GITA) remains available for qualifying C&I projects.
• Renewable Energy Certificates (RECs) can still be generated and sold by SelCo and LSS asset owners.

3. Solar-Service Categories

Here’s what reputable Malaysian providers typically offer:

• Consulting & Feasibility —yield assessment, ROI modelling, IRR stress tests.
• EPC Turnkey Builds —design, engineering, procurement, construction and SEDA compliance.
• O&M Packages —24/7 monitoring, drone thermography, module cleaning, warranty claims.
• Solar-as-a-Service / PPA —zero-CAPEX model; developer owns the system, user pays discounted tariff.
• Hybrid & BESS —pair PV with battery storage to shave peaks and boost self-consumption.

4. How to Choose a Provider

1. Track record: look for ≥ 5 MW rooftop and at least 2 LSS wins.
2. SEDA registration: ensure the company is a recognised PV Service Provider (RPViSP).
3. Equipment quality: Tier-1 modules, inverters with ≥ 5-year product warranty, 25-year performance guarantee.
4. Transparent financials: payback period, sensitivity to future TNB tariff hikes.
5. After-sales support: guaranteed response time, local spare parts, remote monitoring app.

5. Outlook to 2030

The National Energy Transition Roadmap projects ≈ 14 GW of cumulative solar by 2035. Expect:

• Floating PV on hydro reservoirs and ex-mining lakes.
• Battery prices to drop below USD 100/kWh by 2027, accelerating hybrid systems.
• Potential policy reboot (NEM 4.0 ?) once regulator reviews grid-impact data from current programmes.

6. Frequently Asked Questions

Will existing NEM 3.0 users still receive bill credits?

Yes. Credits are secured for ten years from each system’s commissioning date.

Can I still export excess power under SelCo?

No. SelCo is strictly self-consumption; systems are sized so exports are minimal.

What’s a realistic ROI for a 100 kW commercial system under SelCo?

5–8 years, assuming 80 % daytime utilisation and 2 % annual tariff escalation.

Is there talk of a new net-metering scheme?

The Ministry of Energy Transition and Water Transformation (PETRA) has hinted at a policy refresh, but no official timeline has been released as of July 2025.