Net Energy Metering (NEM)

For residential or commercial customers who generate their own electricity, net metering allows them to feed the electricity which they do not use, back to the grid by using a bi-directional meter. Net metering is in fact a billing mechanism that credits the solar energy system owners for the electricity they add to the grid.

In other words, when a customer’s electricity generation exceeds the customer’s use, electricity from the customer flows back to the grid, offsetting electricity consumed by the customer at a different time during the same billing cycle. In effect, the customer uses excess generation to offset electricity that the customer otherwise would have to purchase at the utility’s full retail rate. Customers are only billed for their net energy use.

Malaysian Corporate Green Incentives

Tax Incentive for Green Technology Project

Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred on a green technology project from the year of assessment 2013 (date on which the first qualifying capital expenditure incurred is not earlier than 25 October 2013) until the year of assessment 2020. The allowance can be offset against 70% of statutory income in the year of assessment. Unutilized allowances can be carried forward until they are fully absorbed. Green technology project related to renewable energy, energy efficiency, green building, green data center, and waste management can qualify for this tax incentive. Applications received by 31 December 2020 are eligible for this incentive.

Tax Incentive for Green Technology Services

Income tax exemption of 100% of statutory income from the year of assessment 2013 until the year of assessment 2020. Green technology services related to renewable energy, energy efficiency, electric vehicle (EV), green building, green data center, green certification and verification, and Green Township can qualify for this tax incentive.

Tax Incentive for Purchase of Green Technology Assets

Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred in green technology asset from the year of assessment 2013 (date on which the first qualifying capital expenditure incurred is not earlier than 25 October 2013) until the year of assessment 2020. The allowance can be offset against 70% of statutory income in the year of assessment. Unutilized allowances can be carried forward until they are fully absorbed. Tax Incentive for Green Technology Project