Feasibility Study of Implementing Solar Photovoltaic Systems under Net Energy Metering Scheme in UTeM


  • Chin Kim Gan
  • Hayder Salah Mohammed
  • Kyairul Azmi Baharin
  • Mohd Ruddin Ab Ghani
  • Md Nazri Othman




Net energy metering, solar photovoltaic system, economics


The Malaysian government has introduced the Net Energy Metering (NEM) programme in November 2016 as one of the measures to encourage the development of renewable energy in Malaysia. In light of this, this paper aims to investigate the feasibility of installing solar photovoltaic system in UTeM under this NEM scheme. To achieve this, historical solar irradiation profiles were obtained from the commercially available database. This is to estimate the expected solar output generation. This is important as the amount of solar generation will ultimately translate into the revenue that is needed to justify the investment decision. As a state funded university, UTeM is enjoying a special subsided electricity tariff rate. Hence, the analyses have suggested that the rate of return of such an initiative is relatively low and unattractive for the investor in the economic point of view.




[1] The Paris Agreement, United Nations Framework Convention on Climate Change, 2016.

[2] Renewables 2018 Global Status Report, REN21, 2018.

[3] “500MW Under Net Metering Available From 2016-2020â€, Sustainable Energy Development Authority (SEDA) Malaysia.

[4] Guidelines of Solar Photovoltaic Installation on NEM Scheme, Energy Commission, 2016.

[5] SEDA Annual Report 2017, Sustainable Energy Development Authority (SEDA) Malaysia.

[6] C.Y. Lau, C.K. Gan, PH Tan, “Evaluation of solar photovoltaic Levelized Cost of Energy for PV grid parity analysis in Malaysia,†International Journal of Renewable Energy Resources vol. 4 (1), pp. 28-34, 2014.

[7] C.H. Tie, C.K. Gan, “Impact of Grid-Connected Residential PV Systems on the Malaysia Low Voltage Distribution Network,†2013 IEEE 7th International Power Engineering and Optimization Conference (PEOCO2013), Langkawi, Malaysia, 3-4 June 2013.

View Full Article: