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SOLAR SCHEMES IN MALAYSIA​

by Ir. Azean Abu Samad.


APPLICABLE FOR BOTH HOMES AND BUSINESSES


FEED-IN TARIFF (FIT)

Launched in December 2011, FIT scheme enables companies and house owners to produce renewable energy from 4 sources – solar, biogas, biomass and small hydropower – and sell it directly to TNB in Peninsular and SEB in Sabah. The rate is attractive, and hence the quota especially for solar is all taken up. So skip this as it is no longer an option for solar.​


NET ENERGY METERING (NEM)

NEM is a mechanism for you to use solar energy that you produce for your own consumption. Any excess energy generated will be exported to TNB grid automatically. The energy flow from the grid to your premise and from your premise to the grid is read by a special meter called “bi-directional meter.” The energy sold by you to TNB will be used to offset final electricity bill.


Click here to watch NEM video.​


SELF CONSUMPTION (SELCO)

SELCO allows you to generate electricity from solar to reduce your electricity cost and carbon footprint. However, you cannot sell any excess energy generated to TNB. The idea here is to consume all, and not to sell. ​


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QUICK TIP

NEM quota is expiring in 2020.​ Get your quota fast if you are​ interested to participate.​

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APPLICABLE FOR BUSINESSES ONLY


NEW ENHANCED DISPATCH ARRANGEMENT

Launched in 2015,  it allows non-PPA/SLA Generators such as co-generators and expired PPA/SLA Generators to operate as Merchant Generators to sell energy to Single Buyer. NEDA allows these power generators to bid their variable cost (fuel and O&M) than those stated in the PPAs and SLAs. It is designed to enhance competitions and cost efficiency of the market.​


LARGE SCALE SOLAR (LSS)

LSS is a scheme that lets you generate electricity via solar PV farm with installed capacity of 1 MW or more and sell to the grid. This scheme is administered by the Energy Commission and the selection for potential developers will be done through competitive bidding.​

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