Let’s look at all the agencies & policy lingos that you will get involved with if you decide to install a solar energy system for your home or business:
Involved Government Agencies
- Suruhanjaya Tenaga (ST) — Energy Commission. Government body to regulate the energy sector.
- Tenaga Nasional Berhad (TNB) — the dominant energy company in Malaysia.
- Sustainable Energy Development Authority (SEDA) — the organization that regulates the solar scheme (NEM).
- Malaysian Investment Development Authority (MIDA)- the agency dealing with corporate green energy tax deductibles.
Government Schemes
- Self Consumption (SELCO)
- Feed-in Tariff (FiT) — discontinued
- Net Energy Metering (NEM)
Self Consumption (SELCO)
As the name suggests, for applicants of this scheme, all the electricity generated from the solar energy system will be 100% used for self-consumption.
Excess energy will not be offset or compensated in any way.
Feed-in Tariff (FiT)
Feed-in Tariff (FiT) was the first renewable energy scheme introduced in Malaysia to test the public’s interest in renewable energy.
Renewable sources approved for this scheme:
- Biomass — burning of solid biological waste
- Biogas — burning of methane gas from the decomposition of organic waste
- Small Hydropower — harnessing energy from flowing water
- Solar Photovoltaic — harnessing energy from sunlight
If you are a Feed-in Tariff Approval Holder (FIAH), all the energy that you generate will all be exported and sold back to TNB.
TNB will buy this energy back from you at a slightly lower rate than what they are selling energy to you.
This scheme was introduced in 2004 and registration stopped in 2016. Net Energy Metering (NEM) will be the successor of the discontinued FiT scheme.
KWTBB is Funding Fit Program
Where does the government get the funds to pay the FiT holders? Well, we all are!
If you take a closer look at your TNB bills, there’s a 1.6% charge named KWTBB (Kumpulan Wang Boleh Baharu, or Renewable Energy Fund):
All energy consumers are contributing to the KWTBB fund each and every month.
Net Energy Metering (NEM)
Under the Net Energy Metering (NEM) scheme, the energy produced from the Solar Energy System will be consumed by the property itself first.
If you consume more energy than what your solar energy is generating, your property will import energy from the TNB grid just like usual.
Excess energy (if any) will be exported back to the grid and will be offset with a 1 to 1 basis.
i.e, 1kWh of energy exported will be offset with 1kWh energy consumed from the grid. The credit can be rolled over to a maximum of 24 months.
Licensing for NEM
A license is necessary for the following scenario:
- PV system above 24kW for single-phase (residential)
- PV system above 72kW for three-phase (commercial lots)
Wrapping it all up
As an end-user, you most likely will not have to deal with these organizations personally as the contractor hired for the project installation will usually take care of the process for you.
But it’s nice to know who is involved if you decide to get solar power for your house or business.
- Understanding your TNB bill & How to reduce it.
- How Does Malaysia Generate Electricity
- What is Solar Energy & How Does it Work?
- Solar Energy Schemes and Government Bodies Involved in Malaysia.
- Solar Tax Incentives for Malaysian Companies.
Originally published at https://balkonihijau.com.
