EPJ Photovoltaics 16, 29 (2025)
https://doi.org/10.1051/epjpv/2025017

Original Article

Techno-economic evaluation of grid-connected PV generation system based on net metering scheme 3.0 for commercial buildings in Malaysia

¹ School of Electrical & Electronic Engineering, Universiti Sains Malaysia, Nibong Tebal, Penang, Malaysia
² Department of Facility Development and Management (Engineering), Universiti Sains Malaysia, Nibong Tebal, Penang, Malaysia

^* e-mail: norazizah.yusoff@usm.my

Received: 19 March 2025
Accepted: 8 September 2025
Published online: 25 November 2025

Abstract

The increasing imperative for sustainable energy solutions has significantly amplified the demand for commercial grid-connected photovoltaic (PV) systems, particularly those integrated into rooftop installations within urbanized environments. Malaysia's Net Energy Metering (NEM) 3.0 policy, a cornerstone of the nation's renewable energy strategy, permits commercial establishments to connect up to 75% of their peak electrical demand capacity to the national grid. This strategic allowance empowers property owners to substantially offset their energy expenditures and realize considerable savings on electricity bills over extended periods. The widespread deployment of PV systems leads to complexities notably concerning the grid's power factor which may lead to thermal inefficiencies and potential failures of switching apparatus within the electrical infrastructure. This research presents a detailed design analysis and economic evaluation of a substantial 4324.75 kWp rooftop PV system by utilizing the GCPV system. The study leverages specialized PV system software (PVsyst) to conduct environmental, financial, and technical assessments specifically at the USM Engineering Campus, Penang, Malaysia. Empirical data from 2023 reveal that the USM Engineering Campus achieved an approximate saving of RM 2.2 million during the initial year following the installation of its grid-connected PV system. It is observed that the degradation in the system's power factor from an initial 0.96 to 0.83 was primarily attributed to the suboptimal operational state of the pre-existing capacitor banks. The financial analysis specifically tailored for the commercial buildings operating under the NEM 3.0 framework projects a favorable five-year return on investment (ROI). This research serves as a valuable case study for commercial building owners contemplating the adoption of green energy production and exploring significant avenues for cost reduction.