The introduction of new Net Energy Metering (NEM) scheme in 2016 in Malaysia is seen as an improvement from the previous FIT scheme. NEM allows a user to generate, use and export the net excess energy to the grid instead of selling all the generated energy as in FIT scheme. However, the NEM scheme (NEM 2016) still have a problem which is small size residential customers will not get benefited from the scheme in term of electricity bill savings. Therefore, the Malaysian government introducing a new NEM scheme (NEM 2019) to replace previous NEM scheme (NEM 2016) to overcome drawbacks of NEM 2016. This paper will investigate the performance of NEM 2019 overcome the previous problem by comparing the performance of NEM 2019 and against NEM 2016 in term of NPC (net present cost) and electricity cost savings by using HOMER software. The analysis is conducted on three different size of residential customers; small, medium and large with different PV panel sizes from 1kWp to 8kWp. The results show that NEM 2019 will produce lower NPC compared to NEM 2016 for most cases.
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.
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.
The introduction of Net Energy Metering (NEM) scheme for electricity customers in Malaysia is seen as an improvement from the previous Feed-In Tariff (FIT). However, the new NEM scheme only benefited the large residential customers but not to medium and small residential customers. Due to electricity tariff blocks structure, the large customers can avoid paying expensive tariff and hence reducing their electricity bill. This is not the case for medium and small customers since they are already paying lower tariff blocks due to their lower electricity consumption. This issue will discourage most residential customers to install solar PV system in their home and affect the Malaysia's renewable energy target. This paper proposed a NEM scheme that integrates Time of Use (TOU) electricity tariff to the scheme. The proposed NEM-TOU scheme will be simulated, tested and compared to the new NEM scheme by using practical small, medium and large residential customers' data. The results show that the proposed TOU-NEM scheme able to overcome the weakness of the current scheme where all customers (large, medium and low) can benefited by installing solar PV system in their home.
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