Frequently Asked Questions
– Homeowners

Q: Why is it best for a homeowner to utilize solar energy?
A: There are many benefits in utilizing solar energy especially in Malaysia. Malaysia has an efficient Feed-in Tariff scheme that is advantageous for homeowners because of the long-term financial payback it gives while it gives you the opportunity of absorbing clean energy to provide electricity, further avoiding the rising cost of energy.

Q: What should I know about the grid-connected feed-in tariff?
Grid-connected RE systems are usually located in the urban areas. These directly supply solar electricity for households via an inverter. Should the RE systems provide more than enough energy, the excess electricity goes to the electricity grid. For that, homeowners will receive payment that is equivalent to the generated electricity amount. This is how the Feed-in Tariff works.

Q: Are the rates guaranteed?
Yes. A premium FiT rate is guaranteed for every kilowatt-hour generated by the system. This continues for the next 21 years.

Q: Does the Malaysia Feed-in Tariff fund for the premiums paid by the Tenaga Nasional Berhad?
The Malaysian government nor the Tenaga Nasional Berhad fund for the Feed-in Tariff. The funds are sourced from the RE funds under the Sustainable Energy Development Authority (SEDA) Malaysia. This was mandated under the Renewable Energy Act 2011.

Q: Are there solar panel grants given by the Malaysian government for home installation costs?
A: There are grants provided for home installation costs of Solar PV technologies for some countries; however, Malaysia does not have these grants available for homeowners. But it is important to note that most banks are willing to service loans at low interest rates for homeowners who are interested in installing Solar PVs because the Feed-in Tariff guarantees profit for long-term periods.

Q: Does installing technologies such as solar PV give out incentives?
Yes. The Malaysian government provides incentives through the FiT rate to encourage more individuals to utilize renewable energy. Furthermore, the Malaysian government provides fiscal incentives included in the yearly budget to support renewable energy utilization.

Q: How can a homeowner apply for Feed-in Tariff?
Feed-in Tariff applications can be done manually or online. Should a homeowner decide to apply manually, there are application forms available from the SEDA Malaysia’s office. Online submissions can be done via the SEDA Malaysia official website.

Q: How can a homeowner apply for Feed-in Approval for authorized selling of renewable energy at FiT rates?
A: Applying for Feed-in Approval is easy. It can be done personally by the homeowner or get a service provider to do the application.

Q: When the feed-in tariff commencement date depends on the availability of the distribution licensee, how can SEDA Malaysia facilitate for my feed-in tariff commencement date?
A:There is a specific time frame or set target date for tariff commencement dates; however, the distribution licensee still needs to abide by the Renewable Energy Act 2011 that obliges them to initiate the interconnection and purchase of the renewable energy. It should also be noted that failure to perform the obligations would penalize the distribution licensee.

Q: Does the Tenaga Nasional Berhad support the Feed-in Tariff System?
Yes. The Tenaga Nasional Berhad does support for the government initiative in promoting energy sources with low-carbon utilization. As stated by the Renewable Energy Act 2011, distribution licensees has the obligation to purchase renewable energy ad prioritize these purchases using non-renewable energy sources over electricity-generated sources.

Q: Should the Tenaga Nasional Berhad or any other distribution licensees, refuse to purchase the renewable energy I have generated, what should I do?
The Tenaga Nasional Berhad and the other distribution licensees are obligated to purchase the renewable energy generated by its producers. Furthermore, they are required to give priority to the energy generated from renewable energy sources compared to the energy generated from the non-renewable sources of energy. Also, there are penalties imposed for distribution licensees who fail to comply with the law.

Q: Is the feed-in tariff income taxable?
Yes. Income from the feed-in tariff is subject to taxes. Any other exemptions require a policy given by the government.

Q: Will the FiT rate given under the RE power purchase agreement and the FiA be lessened in the next few years?
No. To guarantee the security of investments, a fixed FiT rate is applied for the next 21 years until a grid parity is given. Furthermore, the goal of the degression is to achieve grid parity at faster rates and increase efficiency while reducing costs.

Q: Should the RE power purchase agreement under the FiT system expire, what happens next?
If the RE power purchase agreement or FiA’s effectivity period reached its expiration, as the Feed-in Tariff Approval Holder, you can re-apply for a new Feed-in Approval or FiA; however, Feed-in Tariff Approval Holders, including you, have to negotiate with the distribution licensees directly especially if grid parity has been achieved.

Q: Is the internal utilization of renewable energy allowed?
Yes; however, only RE installations connected at low voltages are allowed by the SEDA Malaysia. To be accurate, utilizing renewable energy is allowed only at 230V, 10kW and 400V, > 10kW and 425kW. More detailed conditions will be made available prior to the launching of the FiT system.

Q: Prior to the expiration of the REPPA, is going beyond the FiT rates provided on the contract possible for retail electricity tariffs?
Yes. As described in the even described as the attainment of grid parity in the RE Act 2011, the one responsible for paying the displaced cost is the FiA holder which is you as the company owner.

Q: Should I decide to sell my house or transfer to a new location, will the RE power purchase agreement and FiA be transferred to the new owner?
Yes. The RE power purchase agreement and FiA is transferred to the new owner with a given consent from the SEDA Malaysia.

Are you a company with plans of investing in Solar PV but wants to get more ideas about the processes and how the application works? Read about the Frequently Asked Questions – Corporate/Companies to help you.