Abstract
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.
Highlights
Malaysia can be considered as a potential country for generating high power from solar PV system since it consistently exposes to the sun throughout the year
Even though the electricity bill is RM0/month with PV system, the total cost is RM93.33/month when the cost of PV is considered. This shows that the monthly electricity cost for Home B will be increased when solar PV system is installed with net energy metering (NEM) scheme
PROPOSED Time of Use (TOU)-NEM SCHEME This paper proposes that the existing NEM scheme is integrated with TOU pricing scheme to overcome the weakness of NEM scheme as presented in subsection 2.2
Summary
Malaysia can be considered as a potential country for generating high power from solar PV system since it consistently exposes to the sun throughout the year. Realizing the potential of solar energy and importance of renewable energy (RE) in Malaysia, various renewable energy (RE) policies have been introduced to encourage the public including residential customers to install their own renewable energy system. It started with the launching of the Small Renewable Energy Power Program (SREP) on 11 May 2001. After that, feed-in tariff (FIT) scheme is introduced in 2011 for commercial and residential customers. Compare to FIT, the new NEM scheme is seen to be less attractive since it only benefited the large customers (with high monthly kWh consumption). This paper proposed a new NEM scheme that utilizes time of use (TOU) pricing to overcome the problem
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