Friday, September 9, 2011

Do you want to earn money from your home ?Selling Solar energy to Grid in Malaysia

The implementation of Feed in tariff  will launch very soon.However, alot of info such as how the RE funding and the objective of RE Act and related info are available for Malaysian as below link:
One of the most interesting for us is to find out how much we can earn if we install solar panel at our home and sell the solar generated electricity to TNB (Malaysia Utility company).  From the official website, below is the Feed in Tariff rate offer to customers that interested to participate this special RE programme. This RE programme expected to effective up to 21 years with annual degression rate of 8% of from the initial offer price.

source: Malaysia Feed In Tariff Handbook

Q What is a ‘degression’? What does it mean and why is there a need for one?

 Tariff degression refers to the annual reduction of renewable energy tariffs. The rate of reduction depends on the maturity and the existing cost reduction potential. Tariff degression  applies to all technologies and will only affect a developer every time he/she comes applies for the FiT.

For example, a home owner (A) installs a Solar PV system in year 1 and signs an agreement with TNB at an FiT rate of RM1.75 per kWh. Home owner (A) will continue to receive this rate throughout his/her agreement duration of 21 yrs. A year after home owner (A) installs the system, his/her neighbour, (B) decides to install a PV system in his/her home too. By year 2 the FiT rate has now reduced by 8% to RM1.61 per kWh. Therefore, home owner (B) will now have a 21-year contract with the TNB selling their PV electricity at RM1.61 per kWh. This form of degression rewards the early movers of RE in the country and also promotes cost reduction  of the RE technology.

Source: FAQ Feed in Tariff

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