Malawi launches net metering scheme
Malawi’s government has launched a net metering scheme to encourage rooftop solar adoption, starting with a pilot involving 34 prosumers and 3.9 MW of capacity.
Malawi’s Ministry of Energy and the Malawi Energy Regulatory Authority (MERA) introduced a net metering framework to allow households and businesses to generate electricity and feed surplus power into the national grid. The initiative aims to reduce reliance on conventional energy sources and promote cleaner, more affordable energy. Implementation began in May 2026 under the Electricity Supply Corporation of Malawi (ESCOM), with an initial pilot program targeting 34 eligible prosumers.
The pilot program, expected to involve 34 prosumers with a combined generation capacity of approximately 3.9 MW, marks the first practical application of the new net metering scheme. The United Nations Development Programme (UNDP) has demonstrated the concept through a solar PV installation connected to the national grid. However, the scope of nationwide commercial deployment remains uncertain, pending clarification on eligibility, compensation, and administrative procedures.
Malawi’s electricity sector has faced persistent challenges, including grid instability, heavy dependence on hydropower, renewable energy curtailment, and reliance on costly diesel backup generation. To address these issues, the country has invested in grid-scale energy storage infrastructure, including a new utility-scale battery energy storage system (BESS) in Kanengo, Lilongwe.
The 20 MW/40 MWh BESS facility, developed by ESCOM with support from the Global Energy Alliance for People and Planet (GEAPP) and $20 million in grant financing, was inaugurated in July 2026. According to the International Renewable Energy Agency (IRENA), Malawi had 105 MW of installed PV capacity at the end of 2025.