Solar PV FIT Rates
New Degression Rates for Solar PV Technology under the Malaysian FIT Mechanism
As of March 2013, Malaysia’s new degression rates have come into effect which applies for Solar PV RE Quotas released in 2013. Although the degression rate for Solar PV Systems up to 24kW will still remain at 8%, the rate for larger systems will increase from 8%-20%. Also, degression rates for bonus criteria of Solar PV modules and inverters that are manufactured locally has now been abolished, which was previously 8%.
Considering Factors
SEDA
Malaysia, which manages the country’s FIT System, has imposed various factors for applicable FIT Rates. Such factors are:
Type of Renewable Energy Resource Used
- Small Hydro
- Biogas
- Biomass
- Solar PV
Renewable Energy Installation Capacity
- Maximum installed capacity for all RE Installation is 30MW
- FIT Rate lowers as installed capacity increases
Additional Bonus FIT Rates for RE Installations that Meets the Criteria
- Used as installation in buildings or building structures
- Used as building materials
FIT Commencement Date
- FIT Rates for RE technologies decreases with time based on their individual annual degression rates
- Reduced Fit Rate for each RE technology is defined by the applicable rate at the time of the FIT Commencement date
- Degression rate reflects maturity and existing cost reduction potentially for all renewable energy technologies
Solar PV FIT Rates 21 Years from FIT Commencement Date
| Renewable Energy Installation Capacity | FIT Rates (RM per kWh) 2013 | FIT Rates (RM per kWh) 2014 |
| Up to 4 kW installed capacity | 1.1316 | 1.0411 |
| Above 4 kW up to 24 kW installed capacity | 1.1040 | 1.0157 |
| Above 24 kW up to 72 kW installed capacity | 0.9440 | 0.7552 |
| Above 72 kW up to 1 MW installed capacity | 0.9120 | 0.7296 |
| Above 1 MW up to 10 MW installed capacity | 0.7600 | 0.6080 |
| Above 10 MW up to 30 MW installed capacity | 0.6800 | 0.5440 |
*Based on SEDA Malaysia FIT Mechanism
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