Supply Agreement for Renewable Energy (SARE) Provides Cheaper Electricity to Solar User in Malaysia

Supply Agreement for Renewable Energy (SARE) Provides Cheaper Electricity to Solar User in Malaysia





SARE Programme Allows Malaysia Solar Users to Install Solar Panels in Their Houses Under a Solar Leasing Concept

Read also: Net Energy Metering (NEM)

28 November 2018

Domestic and commercial users of solar power will enjoy cheaper electricity bills from Jan 1 under two revamped policies as the government seeks to make renewable energy (RE) a mainstay in the country’s power grid.

Energy, Technology, Science, Environment and Climate Change Minister Yeo Bee Yin (picture) said the monthly electric bills reduction will be dependent on the size of the area to be fitted with the solar panel.

Yeo said the rebates is part of the “solar leasing” concept which offers better profits for solar power producers.

“Under solar leasing, there will be zero upfront cost where individuals do not not need to come out with any initial cost to install the solar panels” , said Yeo.

Yeo also said members of the public who generate solar energy for personal use will get rebates from TNB at the same consumption tariff under the revised net energy metering (NEM) programme.

This is to ensure the NEM programme is feasible in terms of ringgit and sen to electricity consumers.

“From Jan 1, 2019, there will be no more differences in the selling and purchasing prices of electricity.

“TNB’s bill calculation will be based on one-on-one where the bill is similar to the clean consumption rate, which is the consumption minus generation times with tariff.”

Solar Leasing and Net Energy Metering (NEM) for Malaysia

Solar Leasing and Net Energy Metering (NEM) for Malaysia


solar leasing net energy metering nem malaysia

Minister of Energy, Science, Technology, Environment and Climate Change (MESTECC), YB Yeo Bee Yin announces new-year changes to try and drive further PV adoption in the populous southeast Asian nation.

28 November 2018

What is Solar Leasing?

With a Solar Leasing or power purchase agreement (PPA) in Malaysia, you don't have to pay the high upfront cost of solar panels, equipment, and installation. Instead of paying for a solar system, you pay a fixed monthly amount for the  electricity the solar panels generate. It's easy and affordable.


What is Net Energy Metering (NEM)?

The concept of NEM is that the energy produced from the solar PV system installed will be consumed first, and any excess to be exported and sold to the distribution licensee (such as TNB /SESB ) at the prevailing Displaced Cost prescribed by the Energy Commission.

Read more about it here.


NEM and Solar Leasing in Malaysia

YB Yeo Bee Yin reportedly announced a move to make the nation’s Net Energy Metering (NEM) regime more attractive by moving to offset surplus energy fed back into the grid on a like for like basis, rather than forcing prosumers to accept a lower displaced cost for excess energy. Malaysian newspaper The Star reports prosumers currently have to pay MYR0.50 ($0.12) per kilowatt hour for electricity but receive only MYR0.31 in return for their surplus energy.

nem solar leasing malaysia


The Star reports the new Net Energy Metering (NEM) regime will be introduced on January 1, at the same time as Solar Leasing is rolled out, to further encourage domestic solar energy in Malaysia


The Reserve states the new Supply Agreement for Renewable Energy (SARE) of Malaysia will see third-party investors agree a price with homeowners and utilities that ensures a saving on bills for the homeowner plus a return for the investor. The investor will then finance installation of the panels, ensuring there is no upfront cost for the householder. For more information regarding Supply Agreement for Renewable Energy (SARE) in Malaysia, check it out here.


The consumers of Malaysia can start to experience the benefits of having a cheaper electricity bill with the Net Energy Metering (NEM) and Solar Leasing concept, estimated next year at Jan 1 2019. Stay tuned for more information from the ministry of Malaysia.