Malaysian parliament approves feed-in tariffs

Posted on April 29, 2011. Filed under: Energy |

-Solar Server-

In its latest session ending April 28th, 2011, the Malaysian parliament passed legislation to create a system of feed-in tariffs for the nation, covering technologies including solar photovoltaics (PV).

The program is scheduled to be implemented by the third quarter of 2011, and contains targets for specific technologies by year, including a set-aside for PV projects smaller than 1 MW in size.

“We’ve studied similar mechanisms in other countries and made comparisons with the ones adopted in developed countries,” stated Malaysia’s Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui.

“And we feel that the feed-in tariff system is good and suitable for our country.”

Tariffs include bonus for rooftop, BIPV, locally made modules

Tariff levels are set between USD 0.402/kWh for PV plants smaller than 4 kW, to USD 0.278/kWh for system 10-30 MW in size. Bonuses are included for rooftop PV, BIPV, locally produced modules and locally produced inverters.

Annual targets for solar photovoltaics start at 29 MW in 2011 and reach 580 MW in 2030.

Malaysia has attracted a significant amount of solar photovoltaic manufacturing in recent years, and is the location of thin-film industry leader First Solar Inc.’s (Tempe, Arizona, U.S.) greatest manufacturing capacity.

Fourth Asian nation to create FIT system

Malaysia is the fourth Asian nation to implement a feed-in tariff (FIT) system, following Japan, Taiwan and Thailand. Japan’s system applies only to solar photovoltaics and pays only for excess generation.

Other eligible technologies in Malaysia’s program include biomass, biogas and small hydro. The program’s annual targets culminate in a goal of 7.09 GW of generation from all eligible technologies in 2030.


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