Some Malaysians who have or, plan to, adopt home solar solutions have expressed concerns over the new power tariff structure set to come into effect tomorrow (1 July), and how it may impact the value of their contributions to the energy grid as well as their returns in the long term.

For solar adopters, they can sign up for TNB’s Net Energy Metering (NEM) contract, in which the energy company would buy back surplus electricity that home solar panels produce by offsetting charges from the actual monthly usage of electricity.

Threads user Azha Adhwa shared a post on the platform saying he heard of complaints about solar adopters who are upset with the new power tariffs.

He illustrates how the promised four-year return on investment (ROI) has turned into 12 years instead.

View on Threads

Another Threads user and solar adopter, Fariz Ahmad, shared an estimate of his electricity bill using the new tariff rates through a post.

Based on his solar system setup that cost RM34,000, which exports up to 1,350kWh to the grid, he presented his calculations based on his monthly usage (1,500kWh) and the new tariffs, comparing the bill estimate with and without a solar setup.

According to his post, Fariz only had to top up his electricty bill at around RM30 to RM70 each month, but with the new tariff scheme, he now needs to prepare about RM300 a month to reach his ROI in seven years.

A quick check using TNB’s solar energy bill calculator on their website, using Fariz’s estimate on his full electricity consumption cost of RM652.50, it is correct that he only has to pay RM30 after the amount has been offset by the NEM.

The new tariff rates are fairer, but solar credit offset is lower

While many have expressed concerns over the new tariff’s impact on their solar investment, it’s safe to say that the updated rate structure will introduce savings on power, especially when combined with the Time of Use pricing scheme.

A TNB calculator tool provided by DM Solutions, an authorised reseller of internet service provider Time Dotcom’s solar energy arm Emit Solar showed that there is a significant reduction in the NEM offset between the old tariff and new tariff because of the way it is structured.

The calculation is based on Fariz’s import of 1,500kWh and export of 1,350kWh.

As you can see underlined in red, there is about a RM340 difference in the NEM offset.

Disclaimer: this tool is not endorsed by TNB or Emit Solar. It is created based on publicly available data and unverified information.

It’s important to note that all the calculations above, including Fariz’s, are all estimations based on the new tariff rates.

It remains to be seen how the new structure will truly impact solar adopters, as new specialised solar policies and incentives may rise in the future. Or, wait until the end of July to see a clearer picture of electricity bills on solar-equipped homes.