MALAYSIA: Sustainable Energy Development Authority Malaysia (SEDA Malaysia) released 20 MW of solar photovoltaic (PV) quota for the non-individuals under the 500kW category on 2nd April 2013 at 12.00pm.
According to the chairman of SEDA Malaysia, YB Tan Sri Dr Fong Chan Onn, the quota was taken up within the first hour of the release. This fast take up rate of solar PV quota took place against the backdrop of the recent increase of degression rate for installed capacity for solar PV greater than 24 kW, from 8 percent to 20 percent. There were altogether 137 solar PV applications submitted via the e-FiT online system by the end of the hour.
SEDA Malaysia had made an early analysis that 99.45% of the solar PV capacities submitted in the e-FiT online system were larger than 24 kW, which had the higher degression rate,” added YB Tan Sri Dr Fong. Thus, it could be concluded the 20 percent degression rate recently gazetted within the Schedule of the Renewable Energy Act 2011 for solar PV projects larger than 24 kW is still commercially viable.
SEDA Malaysia also advised those who are successful in obtaining the quota to ensure their solar PV system will achieve FiT Commencement Date by 31st December 2013 to ensure they enjoy the feed in tariff rate for this year. Those who are unable to commission their system before 1st January 2014 will have their rates degressed by another 20 percent.
“Prior to the opening of the quota, SEDA Malaysia has reminded all prospective applicants they are fully responsible in ensuring compliance of all submitted information/documentation,” said YB Tan Sri Dr Fong. Submission of the update/registration of the profile alone does not mean compliance to the submission process and mandate SEDA Malaysia’s approval.
SEDA Malaysia will have the right to refuse an application or revoke the Feed-in-Approval (where applicable) should any of the information/documents submitted were found to be untrue or falsified.
YB Tan Sri Dr Fong also announced SEDA Malaysia has received a directive from the Minister of Energy, Green Technology and Water; effective 1st January 2014 until 31st December 2017, the degression rate for solar PV for individuals will be reduced to 0 percent. Currently, the degression rate for solar PV for individuals is set to 8 percent.
This means the feed in tariff rates for solar PV for individuals will remain the same for the duration. With the reduction of degression rate to 0 percent for solar PV for individuals the Ministry hopes for greater public participation in the Solar Home Rooftops Program.
The Government anticipates with more engagement in solar PV by home owners will result in a greater willingness from the public to contribute to the renewable energy (RE) fund.