If you’re planning to install solar in 2025, you’ve probably heard whispers about NEM 4.0 — Malaysia’s next update to the Net Energy Metering scheme. But the big question is:
Will NEM 4.0 be better than NEM 3.0 — or should you install now before it changes?
Here’s what we know (and what to expect).
⚡ Quick Recap: What Is NEM?
Net Energy Metering (NEM) allows solar users to export unused electricity back to the grid and receive credits on their TNB bill.
Under NEM 3.0, residential users benefit from:
- Direct energy bill offset via NEM Rakyat
- Credits for excess solar exported during the day
- 10-year contract period
- NEM 3.0 made solar more accessible and financially rewarding — and thousands of homes across Malaysia have joined the program.
What Might NEM 4.0 Look Like?
While official NEM 4.0 details haven’t been released, industry watchers anticipate:
- Possible dynamic export rates (instead of 1:1 credit offset)
- Changes to contract terms or credit validity
- Quota limits based on region or grid capacity
- Encouragement for battery storage or load shifting
- These changes may benefit some — but could also make the system more complex or restrictive for others.
⏳ Should You Wait?
In most cases, waiting is not necessary — and could even be a disadvantage.
Here’s why:
- NEM 3.0 is still active (with limited quota)
- You can start saving on TNB bills immediately
- Early adopters often enjoy more favorable terms than late joiners
- If NEM 4.0 offers upgrades later, migration options may still exist
✅ Final Word: Solar Still Makes Sense — Now or Later
Whether under NEM 3.0 or NEM 4.0, installing solar is a smart long-term move. But with TNB rates climbing and uncertainty around future quotas, it may be safer — and more profitable — to start now.
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