Malaysia Solar Energy Feed-In-Tariff Scheme (Part 1)

What is feed-in-tariff

Feed-in-tariff (FiT) is the Malaysia’s new scheme to promote the use of renewable energy. It is governed under the act Sustainable Energy Development Authority Bill 2010 passed in the Parliament in April 2011. This scheme allows electricity produced from indigenous renewable energy resources to be sold to power utilities at a fixed premium price for a specific duration.The program will be implemented through the government link corporation named Sustainable Energy Development Authority (SEDA).

The basic concept of FiT is that the distribution licensee, like TNB and SESB, pays the producer a premium for the clean energy generated and exported to the power grid. The duration of power sell is dictated by the type of renewable energy used for power generation. For solar energy it will be 21 years.

Qualified renewable energy sources

1. Biomass.
2. Biogas.
3. Small hydro power
4. Solar photovoltaic

Solar FiT rate

Below table shows the rate of solar FiT.

For example, if we install a 5kW solar system in 2013 on our roof, the basic FiT rate would be RM1.20, with twice the 8% degression. Since the system is installed on the roof so we would be qualified for the bonus rate of RM0.26, with twice the 8% degression. Hence, the final FiT rate per kWh would be RM1.236 [(RM1.2 + RM 0.26)x0.92x0.92].

Check out www.seda.gov.my for more information.