Relationship between installed capacity with total installation cost on solar PV among prosumer NEM 2.0 in Malaysia

Generate energy by Solar PV installation among prosumer, i.e; domestic, commercial, industrial as well as agriculture for self-consumption under Net Energy Metering (NEM) system become more popular in Malaysia. One, if not the only reason, is that day-to-day installation costs are kept at a decreasing rate and this is one of the reasonable ones for future investments and energy savings. By considering this issue, this study is motivated to investigate the relationship between installed capacity with the total installation costs as represented by equipment costs, installed costs, and operating costs. Secondary data was utilized provided by Sustainable Energy Development Authority (SEDA) Malaysia and retrieved from Malaysian Energy Information Hub (MEIH). The data is then run by multivariate regression, which is focused on the random and fixed-effect model. Overall, the findings indicate that there is a significant relationship between installed capacities with total installation costs among all categories of the prosumer in Malaysia. It would be recommended that the policymaker can increase the quota capacity allocation to the prosumer since the costs are at a diminishing rate that led to the take-up rate increase.

A Decade of Transitioning Malaysia toward a High-Solar PV Energy Penetration Nation

In the last 10 years, Malaysia has aggressively moved towards a higher penetration of 20% of renewable energy (RE) in the Malaysian energy mix by 2025. Several incentives and initiatives have taken place with the aim of achieving the goals in terms of installed capacity and catching up with the leading countries in these sectors. Since 2011, Malaysia started the Feed-in-Tariff (FiT) before introducing Net Energy Metering (NEM) in 2017, and recently, another initiative known as NEM 3.0 has been introduced. This paper reviews all policies undertaken by the Malaysian government from 2011 to 2021 in spearheading the country to be on par with others, especially those in the Southeast Asian (SEA) region. The effectiveness of each policy on the growth of photovoltaic PV energy installation is highlighted, and the latest update on the NEM 3.0 policy is also discussed. A comparison of each approach in terms of installed capacity and system connection setup to the grid is also considered for the benefit and sharing of knowledge from one of the fastest-developing countries in the region.

Revisiting Solar Photovoltaic Roadmap of Tropical Malaysia: Past, Present and Future

Environmental issues and economic factors such as emission of Greenhouse Gases (GHGs), fossil fuel depletion and fluctuation of oil prices are also the reason behind the utilization of sunlight as a source of energy. Even though with the spread of unprecedented pandemic of COVID 19, the industry of solar photovoltaic (PV) is surviving at a very promising rate compared to the oil industry. Malaysia has a high potential to be successful at harnessing solar energy as this country is located within the equatorial region. The government of Malaysia (GoM) introduced various policies, acts and incentives programs for the purpose of increasing this country’s potential to harness solar energy. Along with the efforts, goals and aims have also been set as a benchmark to measure Malaysia’s success in utilizing sunlight as an energy source. This study reviews the roadmap programs executed by GoM to elucidate the significant roles played in the development of solar PV starting from a few pilot projects in1980s until present. The roadmap focuses on incentive programs namely Feed-in Tariff (FiT), Net Energy Metering (NEM), Self-Consumption Scheme (SELCO), Large Solar Scale (LSS), Supply Agreement with Renewable Energy (SARE) and ‘Peer-to-Peer’ (P2P), which complement all the projects and solar PV applications in Malaysia. The contributing result of this roadmap is the highlights on the continuous solar PV programs stimulated by GoM, the identification and effort to improve the less performing GoM incentive programs combined with the positive responses from communities and industries, have laid a strong platform to forecast a promising future of solar PV industry in Malaysia.

Net energy metering scheme based on time of use pricing for residents in Malaysia

The current Malaysia’s Net Energy Metering (NEM) scheme has been updated in 2019 that credits excess generation into the next billing month at retail rate compare to at displaced cost. The new NEM may attract more installation of solar photovoltaic (PV) system among residential customers. However, it is discovered that customers with low monthly electricity consumptions are still not benefited since their electricity cost is lower than the PV generation cost. Implementing time-of-use (TOU) pricing on NEM scheme may overcome the problem as it based on hourly energy usage. This paper compares the annualized energy cost of residential PV system under different TOU prices and NEM scheme. The results show that an optimized TOU prices as suggested in this paper may give financial benefits to all residential customers with PV system, including the one with low monthly consumption.

Annualized Electricity Cost of Residential Solar PV System under Malaysia’s NEM Scheme

Net energy metering (NEM) is a financial scheme that allows a consumer to generate, use and sell their excess energy to the grid. The main purpose of NEM is for self-consumption to reduce demand from the grid. It will allow customer to avoid being charged with expensive electricity tariff and hence reducing their monthly electricity bill. In other words, the annualized electricity cost could be reduced. NEM is commonly offered to residential solar photovoltaic (PV) system. Different PV size will determine the amount of energy that can be generated. This paper compares the annualized electricity cost of different residential customer types (large, medium and small) for different PV size under Malaysia’s net energy metering (NEM) scheme. This paper utilizes the load profile and solar irradiation data for Malaysia. The results show that high PV size does not guarantee reduction in annualized electricity cost especially for medium customers as the excess PV generation can only be accumulated for 24 months. Large customers may have benefited the most with lower annualized cost with larger PV system, while small customers may not have benefited at all.

Design of Net Energy Metering System for a Hybrid Energy Storage System

The expectation for everyday comforts and success of a country fluctuate legitimately with the expansion in the utilization of intensity. The power necessity of the world is expanding at a disturbing rate because of mechanical development, expanded and broad utilization of electrical device. As per world vitality report, around 80% of our vitality is received from regular non-renewable energy sources like oil, gaseous petrol and coal . It is evident from the current scenario that world will have to face the shortage of resources within no time. Hence, it is a call for an alternative vitality source search and there are many such attempts in recent times. The best elective source is sun powered vitality. This targets in structuring a hybrid Energy Storage System with Net Metering billing methodology to make the client profit from Variable Rate Electricity. Net energy metering system is an uncommon charging game plan that furnishes acknowledge to clients for sun powered PV frameworks for the full retail estimation of the power their framework creates. Under NEM, client's electric meter monitors how much power is devoured by the client and how much abundance power is produced by the framework and sent go into the electric utility lattice.

Financial Impacts of Net-Metered Distributed PV on a Prototypical Western Utility’s Shareholders and Ratepayers

Distributed solar photovoltaic (DPV) under net-energy metering with volumetric retail electricity pricing has raised concerns among utilities and regulators about adverse financial impacts for shareholders and ratepayers. Using a pro forma financial model, we estimate the financial impacts of different DPV deployment levels on a prototypical Western U.S. investor-owned utility under a varied set of operating conditions that would be expected to affect the value of DPV. Our results show that the financial impacts on shareholders and ratepayers increase as the level of DPV deployment increases, though the magnitude is small even at high DPV penetration levels. Even rather dramatic changes in DPV value result in modest changes to shareholder and ratepayer impacts, but the impacts on the former are greater than the latter (in percentage terms). The range of financial impacts are driven by differences in the amount of incremental capital investment that is deferred, as well as the amount of incremental distribution operating expenses that are incurred. While many of the impacts appear relatively small (on a percentage basis), they demonstrate how the magnitude of impacts depend critically on utility physical, financial, and operating characteristics.