Article
Techno-Economic Analysis of Commercial Size Grid-Connected
Rooftop Solar PV Systems in Malaysia under the
NEM 3.0 Scheme
Alaa A. F. Husain
1
, Maryam Huda Ahmad Phesal
1,
*, Mohd Zainal Abidin Ab Kadir
2
and Ungku Anisa Ungku Amirulddin
1
Citation: Husain, A.A.F.; Phesal,
M.H.A.; Ab Kadir, M.Z.A.; Ungku
Amirulddin, U.A. Techno-Economic
Analysis of Commercial Size
Grid-Connected Rooftop Solar PV
Systems in Malaysia under the NEM
3.0 Scheme. Appl. Sci. 2021, 11, 10118.
https://doi.org/10.3390/
app112110118
Academic Editors: Luis
Hernández-Callejo, Sergio
Nesmachnow and Sara Gallardo
Saavedra
Received: 22 September 2021
Accepted: 19 October 2021
Published: 28 October 2021
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4.0/).
1
Institute of Power Engineering, Universiti Tenaga Nasional, Kajang 43000, Malaysia;
alaa.a.f.husain@gmail.com (A.A.F.H.); anisa@uniten.edu.my (U.A.U.A.)
2
Advanced Lightning, Power and Energy Research Centre (ALPER), Universiti Putra Malaysia (UPM),
Serdang 43400, Malaysia; mzk@upm.edu.my
* Correspondence: hmaryam@uniten.edu.my
Abstract:
Commercial grid-connected rooftop solar PV systems are widely applied worldwide as
part of affordable and clean energy initiatives and viable long-term solutions for energy security.
This is particularly true in a crowded city where space is a constraint and at the same time, there
are unutilized rooftops. With the recently announced Net Energy Metering (NEM) 3.0, commercial
buildings in Malaysia can apply up to 75% capacity of the maximum demand (MD), which can be
connected to the grid. Apart from reducing electricity bills, the owner can offset energy for 10 years.
This paper presents a design analysis with the details of the sizing of a rooftop PV system. The PVsyst
software tool is used to estimate the energy produced by a 380 kWp system, and this study provides
a financial analysis to evaluate the profitability of the system with a particular interest in commercial
buildings under the NEM 3.0 policy, which has resulted in 8.4 years return of investment (ROI).
PVsyst is a software used to size the PV system and provides technical, financial, and environmental
analysis. This in-depth analysis could provide a useful case study for asset owners in deciding the
way forward for sustainable energy production, cost saving, and combating the energy security issue,
since Malaysia is blessed with an abundance of sunshine throughout the year.
Keywords: rooftop solar PV; net energy metering (NEM); maximum demand; PV software
1. Introduction
1.1. Motivation
Energy plays a key role in the advancement and development of human activity and a
brighter future. However, the current energy supply is not enough to cover the demand in
the coming years, and it causes damage to the environment [
1
]. Solar energy is an abundant
green source that can replace fossil fuel. Since the sun is available everywhere, solar energy
is widely used by most countries, including developing countries. It is used in Malaysia
under various government policies. These policies are implemented to encourage the use
of green energy and support small and large projects [
2
,
3
]. Most implemented PV system
are residential or large-scale PV system in Malaysia. Under NEM, residential fill in most of
the quota.
Hybrid PV systems are not a popular practice in Malaysia. Due to the lack of analysis
proving the variability of implementing a system that can satisfy the electrical needs of
the consumer and at the same time reduce the cost of electricity, the consumer pays yearly.
NEM 3.0 approved a rooftop PV system implementation that is connected to the utility
grid for commercial buildings. The consumer that falls under this category only is able to
implement 75% of the maximum demand according to the size of the PV power plant. This
gives the motivation to test this policy profitability financially and assess its technical and
environmental impact.
Appl. Sci. 2021, 11, 10118. https://doi.org/10.3390/app112110118 https://www.mdpi.com/journal/applsci
