Solar Power Post-NEM: The Rise of SELCO with Battery Systems

The landscape of solar energy in Malaysia has certainly evolved since the Net Energy Metering (NEM) program officially concluded new applications on June 30, 2025.
 

While existing NEM participants will continue to enjoy their benefits for their contracted period, the spotlight has now firmly shifted to Self-Consumption (SELCO), especially when paired with Battery Energy Storage Systems (BESS).

For those looking to embrace solar power now, SELCO is the default path. Under SELCO, the electricity you generate from your solar PV system is primarily for your own on-site use. The key difference from NEM is that you cannot export excess power to the grid for credits. This is where battery systems become not just beneficial, but increasingly crucial.

Why SELCO + Battery is the Future

With the end of NEM's export benefits, maximizing self-consumption is paramount to achieving significant savings and energy independence. Here's why integrating a battery system with your SELCO setup is a game-changer:

• Maximizing Self-Consumption: Batteries allow you to store surplus solar energy generated during the day and use it during peak demand periods or at night when your solar panels aren't producing. This drastically reduces your reliance on grid electricity, even when the sun isn't shining.

• Cost Optimization: By using stored solar energy during peak tariff hours, businesses and homeowners can avoid higher electricity charges and better manage their energy costs. This effectively acts as a hedge against future tariff increases.

• Enhanced Energy Security and Reliability: A battery system provides a reliable backup during grid outages, ensuring an uninterrupted power supply for essential loads. For businesses, this means operational continuity and reduced downtime.

• Meeting New Regulations: Recent updates to the SELCO guidelines, effective January 1, 2025, indicate a growing emphasis on energy storage. While there's a grace period until December 31, 2025, for the mandatory BESS requirement for systems above 72 kWp, it's clear that batteries are becoming an integral part of large-scale SELCO installations.

• Environmental & ESG Goals: For companies, investing in SELCO with BESS aligns perfectly with environmental, social, and governance (ESG) commitments, demonstrating a dedication to sustainability and reducing carbon footprints.

The Path Forward

Malaysia's commitment to achieving 70% renewable energy capacity by 2050 means that policies will continue to evolve to support solar adoption. While the NEM era has ended for new applicants, the enhanced SELCO program, particularly with the strategic addition of battery storage, offers a robust and sustainable solution for individuals and businesses alike to harness the power of the sun and take control of their energy future.

If you're considering solar, now is the time to explore SELCO with battery storage – it's the smart move for long-term savings, energy independence, and a greener Malaysia.