How to Save Up to 90% of Your Electricity Bills: Solar and NEM
Reducing your electricity bills can be achieved through strategic energy management and leveraging solar power combined with NEM.
Starting 5 Feb 2024, you can apply for the additional quota online through the e-NEM system. The government has recently announced an additional Net Energy Metering (NEM) Rakyat allocation of 50 MW for all Malaysians, allowing you to export additional electricity from your own solar PV system to offset your electricity usage and save up to 90% of your electricity bill!
Installing solar panels and participating in the NEM scheme allows you to generate renewable energy and receive credits for excess energy. By optimising your energy usage and leveraging NEM credits, you can significantly reduce your electricity bills, potentially saving up to 90%.
How NEM helps you save up to 90% electricity bills?
Net Energy Metering (NEM) allows you to generate electricity through solar panels and consume what you produce. Excess clean energy will be exported to the grid, and you will receive credits that offset your electricity bills.
Apply NEM in 3 steps.
- Choose your Solar Plan and make a purchase based on types of financing model.
- Submit the necessary document to your PV provider for the NEM application
- Install and complete solar PV system on your property
How does solar work?
Upon energisation, the system will start to generate solar power for your own usage. In the daytime, you will consume solar power directly from your solar PV system; while at night, you will be using electricity from TNB.
During daytime, when your solar PV system generates more than your own consumption, it exports excess solar power to TNB and you will earn credit to offset your electricity usage at night/on cloudy days. It will be reflected on your monthly electricity bills at the end of the month.
How much can you save on electricity bills?
- Monthly Electricity Bills: Assuming your current monthly bill is RM 600, a solar system can reduce it by up to 90%, saving you RM 540 monthly.
- Long-Term Savings Potential: Over a 25-year lifespan (typical for solar panels), you could save RM540 x 12 months/year x 25 years = RM162,000.
- Reaching ROI: Assuming your monthly instalment of RM540, you might get payback on your investment within 5-10 years, with significant savings.
Benefits of Net Energy Metering (NEM)
1.Reduce your electricity bills.
You can obtain NEM credit when you export the excess energy to TNB to reduce your electricity bill further. On top of that, by generating electricity, you will use less energy from TNB. This means massive monthly savings from electricity bills, and you avoid the highest tariffs block.
2.Financial stability
The government allocated less money to offset the cost of electricity for consumers as they reduced electricity subsidies in July 2023. By installing solar PV, you will protect yourself against the continuous rise of electricity rates as you are no longer dependent on the electricity coming from TNB.
3.Better Sustainability Report Metrics
Transitioning to solar energy significantly reduces the use of electricity generated from fossil fuels and reduces carbon dioxide emissions associated with Scope 2 emissions. It also substantially mitigates the environmental impact on businesses and organisations.
Green Financing and Allowances
1.Green Investment Tax Allowance (GITA):
Available for both companies and individuals. Provides a tax allowance equivalent to 100% of the qualifying capital expenditure (QCE) incurred on green assets, including solar panels. Can offset up to 70% of the allowance against taxable income.
2.Powervest Solar Financing Programme
It offers various flexible financial models tailored to fit your company’s budget and financial position. Powerflex offers zero upfront cost and allows you to own the solar asset after the completion of payment terms. Powerlease, with zero investment required, provides up to a 25-year leasing contract to enjoy savings from installing a solar PV system.
3.Enjoy Tax Incentives of Up to 48%
Business owners could enjoy a tax reduction of up to 48% of the investment cost under capital expenditure (CA) & Green Investment Tax Allowance (GITA), to reduce the business’s taxable profit, making the shift to solar power affordable and economically viable to your business.
If you have more questions, submit them to our customer services or text us via WhatsApp.
Learn more about green financing options with Solarvest to kick-start your saving journey!
Reference:
Chuping, Perlis, 50MW
5,172 cars taken off the road
2,232,224 trees planted a year
49,108 tonnes of CO2 offsetted
Dengkil, Selangor, 13MW
1,345 cars taken off the road
580,378 trees planted a year
12,768 tonnes of CO2 offsetted
Manjung, Perak, 12MW
1,241 cars taken off the road
535,734 trees planted a year
11,786 tonnes of CO2 offsetted
Lembah Beriah, Kerian, Perak, 13MW
1,345 cars taken off the road
580,378 trees planted a year
12,768 tonnes of CO2 offsetted