This paper presents an optimization approach in determining the expansion-limit of Renewable Distributed Generation (DG) capacity through a Net Energy Metering (NEM) scheme specifically for selected Malaysian public hospitals. In this study, the total line loss reduction was analyzed and set as the main objective function in the optimization process where an acceptance region for DG extensiveness was proposed via the lower total line loss outcome value. Solar photovoltaic (PV)-type DG unit (PV-DG) was identified as the type of DG used in this paper. Artificial Bee Colony (ABC) algorithm was chosen to alleviate such PV-DG optimization. The distribution network uses a bus and line data setup from the three selected Malaysian public hospitals prior to three different levels, i.e., National, State, and District level hospitals. MATLAB simulation result showed the PV-DG expansion capacity towards bigger scale and location bounded by the U-trajectory shape theory which resulted in a contradiction between NEM current maximum capacity requirement and actual PV-DG expansion-limit. These limitations were also found to be different among three different level hospitals, and the expansion-limit was tailored by their own distribution network parameters. Thus, this paper provides technical justification and gives the best option to the renewable energy (RE) developer for more effective PV-DG integration through the utilization of a NEM scheme. The importance of the study is portrayed in-depth towards achieving a more sensible and accurate way of estimating the outcome. This will encourage developers, building owners, and users in participating towards achieving potential benefits both in monetary and power system reliability improvement, specifically for Malaysian public hospital applications.