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An Overview of the Feed-In Tariff in Malaysia

Understanding Feed-In Tariff and How You Can Earn

Feed-In Tariff or FIT is a program that is designed to increase investments in renewable energy sources. Some people call FIT as Clean Energy Cashback, a project that will remunerate businesses or individuals just by producing their own renewable energy.

Feed-In Tariff program has been introduced in Malaysia in as early as 2004 to drive the country towards energy independence. However, it was only then in year 2011 that the Malaysian House of Representatives finally passed the Renewable Energy Bill (creating the FIT policy) and the Sustainable Energy Development Authority (SEDA) bill that resulted to the implementation of the program and launching a full-featured Advanced Renewable Tariff scheme which has specific target for each of the technology annually.

To promote the program, Malaysia’s Feed-In Tariff System offers long-term contracts and guaranteed pricing to producers of renewable energy. This will be based on the producer’s particular pricing and generation costs for each of the technology used (i.e. Solar PV). Under the FIT System, renewable energy producers can be homeowners, business owners, private investors, or even farmers, which will be compensated for the renewable energy their system or technology has produced. For more information on becoming an authorized renewable energy producer, see our page on Becoming a FIA Holder.

How Feed-In Tariff Works : Feed-In Tariff’s primary goal is not only having savings due to lower electricity bill; it is also designed to make a profit. By investing in the program and producing renewable energy, you’re allowing yourself to take advantage of the three benefits FIT has to offer, which are:

  • Generation Tariff Payment, where you get paid for the renewable energy you produced whether you used it or you feed it into the grid (see FIT Rates).
  • Export Tariff Payment, where you will be paid for the electricity you have generated.
  • Other attractive FIT Incentives that are being offered to renewable energy producers and users.
  • Investing in Feed-In Tariffs typically lets its renewable energy producers regain the money they’ve invested for the technology with guaranteed long-term profits at the same time.

Find Out More :Our site not only provides detailed information about Feed-In Tariff, but also the perfect type of technology that you may use. You might want to look at the following to learn more:

  • Most Asked Questions on Feed-In Tariff
  • Feed-In Tariff RE Quota in Malaysia
  • Introduction to Solar Energy
  • Getting Started with Solar Power
  • Why Solar?
  • Investment Returns on Solar PV
  • Lowering Cost of Your Electricity

You’ve finally decided to take advantage of the FIT System and start to generate your own electricity. Get in touch with us if there’s something you can’t find on the site or if you simply need an advice.

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