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Renewable Energy Act and SEDA

In Malaysia, if you are thinking of having your own Solar Photo-Voltaic (PV) system, the Feed-in Tariff (FiT) system is the way to go. It gives everyone the chance to produce their own renewable energy (RE), make a profit and help to conserve the environment. Through the use of a grid-connected solar PV system under the FiT system, you can sell electricity to Tenaga Nasional Berhad(TNB).


While solar PV system has been developing by leaps and bounds in the past 15 years, it is still a relatively new energy sector. The cost per unit of electricity generated from solar PV is high compare to more conventional electric generation like gas, hydro-electricity and nuclear reactor. The good news is the cost of solar PV has been coming down drastically as the technology matures and mass production kicks in. These are illustrated by the charts below:

Fast-Declining cost of Solar PV
Source: Compiled by SolarViz

Solar PV is one of the greenest ways to produce power. Many governments in the world step in with incentive programs to ensure the continual growth of their solar PV industry. These incentive programs have enjoyed great success and are currently well-established in Europe, America, Australia, and closer to home, Thailand. In year 2004, the Malaysia government started studying these incentive programs and conducted “initial test phase” of such programs under Pusat Tenaga Malaysia.


The government makes the move forward in year 2011 by passing the Renewable Energy Act 2011. The Sustainable Energy Development Authority (SEDA) is established under the Act to regulate and develop the renewable energy industry in Malaysia.


Shortly after its establishment, SEDA launched the Malaysian renewable energy incentive program called the Feed-In-Tariff system (FiT system), which is modeled after hugely successful programs in Europe and a carry-through from earlier incentive program under Pusat Tenaga Malaysia. The FiT system covered a range of renewable energy including, Biogas, Biomass and Hydro-electricity and Solar PV. Since the launch of FiT, it received strong positive response from the public, with overwhelming interests in the solar PV.



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