What Is Net Energy Metering (NEM) and How Does It Work in Sabah?

Until 2026 this was not possible in Sabah. Distributed solar in the state ran under SELCO, a self-consumption programme where nothing may flow back to the grid. That changed for homes. This guide explains the mechanism — how the metering works, what a credit is worth, how NEM differs from SELCO and FiT, and who is legally allowed to install it.

How does net energy metering actually work?

Net energy metering measures electricity flowing in both directions through a single smart meter, then bills you on the difference. There are only two meaningful numbers: the energy you imported from Sabah Electricity Sdn Bhd (SESB), and the energy you exported to it.

1. Your panels generate. Solar output goes first to whatever your home is using at that moment — fridge, air conditioning, water heater.
2. Self-consumption comes first. Every kWh your home uses directly is a kWh you never buy from SESB. This is where most of the value sits.
3. Surplus is exported. Generation your home cannot use in that instant flows out through the meter to the SESB network, and the meter records it.
4. Shortfall is imported. At night and on overcast days you draw from the grid as normal, and the meter records that too.
5. You are billed on the net. At the end of the billing period, exported units are set against imported units.

The key difference from a battery is that the grid is doing the storing. You are not keeping your own electricity — you are trading it in for a claim on the same amount later.

What does a one-for-one offset mean on a SESB bill?

It means one exported kWh cancels one imported kWh, valued at the same gazetted domestic tariff you already pay. There is no separate, lower export rate — the energy you send out is worth exactly what the energy you take in costs.

The calculation SESB applies is:

Your bill = (energy imported × domestic rate) − (energy exported × domestic rate)

A worked example, in energy units only. Suppose over one billing month your home imports 400 kWh from SESB and exports 150 kWh of surplus solar. You are billed for the net 250 kWh at the gazetted domestic rate. If in a sunnier month you export more than you import, the difference does not disappear — it becomes a credit carried into your next bill.

Your actual figure depends on your tariff block and your consumption pattern, so we have not put a ringgit value on the example above. To model your own numbers against a real bill, use the Sabah net energy metering calculator, and read how to read your SESB electricity bill first so you are working from the right figures.

One consequence worth understanding early: because the offset is one-for-one, an oversized system does not earn more. It banks credits you may never use. Sizing to your household's actual consumption matters more here than maximising roof coverage.

NEM, SELCO or FiT — which one applies to me?

For a Sabah homeowner installing solar today, the route is net energy metering under Solar Rakyat Sabah. SELCO is the route for commercial and industrial premises and does not permit export. FiT is a long-term national scheme administered by SEDA and is not the mechanism a Sabah home uses to go solar in 2026. Confusing the three is the single most common mistake we see.

If you run a business rather than a household, our SELCO explainer covers your route, and why zero export applies to Sabah business systems explains the engineering reason behind it.

What happens to credits I do not use?

Unused credits roll forward for up to 12 months, then expire. They cannot be cashed out, and they are non-transferable — you cannot sell them, assign them to someone else, or move them to a different SESB account.

Three practical consequences follow from that:

• Credits are a buffer, not an income stream. They smooth a sunny month into a rainy one. They will not produce a payment.
• Consistently banking credits means the system is oversized for the household. That capital would have done more work elsewhere.
• The account matters, not just the roof. Because credits are tied to the account, they do not follow you if you move.

You may install a battery alongside a net energy metering system, but it must be configured for self-consumption only — a battery cannot be used to store grid energy and export it later.

Who is legally allowed to install net energy metering in Sabah?

Only an Electrical Contractor Class PV (Grid-Connected) — an ECCPV-GC — registered with the Energy Commission of Sabah may submit and manage a Solar Rakyat application. This is a legal requirement of the scheme, not a recommendation. A homeowner cannot self-apply, and a general electrical contractor without the Class PV (Grid-Connected) registration cannot apply on your behalf.

That single rule shapes the whole process. Before anything else happens, you appoint a registered contractor, and that contractor becomes responsible for the technical submission, the ECoS correspondence and the connection sign-off.

Before you sign anything: ask any installer quoting you for Solar Rakyat to confirm they hold ECoS ECCPV-GC registration, and check them against the ECoS register yourself. Easy Solar is listed on it.

What are the size limits and equipment requirements?

The residential scheme is deliberately bounded. Capacity is capped at 5 kWac on a single-phase supply and 10 kWac on a three-phase supply, panels must sit on the roof or porch of the premises, and SESB installs a new bidirectional smart meter before the system may operate.

• Capacity: up to 5 kWac single-phase, up to 10 kWac three-phase
• Mounting: rooftop or porch only — ground-mounted arrays are not permitted
• Smart meter: RM400 single-phase or RM450 three-phase, charged by SESB
• ECoS application fee: none — ECoS does not charge for the application itself
• Battery storage: permitted, but for self-consumption only
• Account type: a domestic SESB account at the premises

For a breakdown of what the equipment itself costs in Sabah, see how much solar costs in Sabah.

How do I apply for net energy metering in Sabah?

You appoint an ECoS-registered ECCPV-GC contractor, who submits the application to ECoS. ECoS targets approval within 14 working days, after which an installation approval (SRATI) is issued. You then have three months to complete the installation, and the system may only be switched on once the operation approval (SRATO) is granted.

Two financing routes exist: direct purchase, where you buy the system outright, and SaRPVI, a zero-upfront arrangement. Which is appropriate depends on your circumstances rather than on the scheme.

Is there a deadline to apply?

Yes, and there are two of them. The scheme is capped at a 20 MW quota allocated first-come, first-served, and applications close on 30 June 2028 — or when the quota is exhausted, whichever happens first. A quota is a harder deadline than a date, because it can arrive early.

For the full scheme rules, eligibility and what Easy Solar handles on your behalf, read our complete guide to Solar Rakyat Sabah.

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