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Feed-In Tariff System (FiT)

Feed-in Tariff system (FiT) is a mechanism established by the Malaysia Sustainable Energy Development Authority (SEDA) to allow electricity that is produced from indigenous renewable energy (RE) resources to be sold to power utilities at a fixed premium price and for a specific duration.

 

Currently, the renewable Energies covered includes hydro-electric, biomass, biogas, wind energy and last but not least Solar PV Energy.

 

For the case of Solar PV Energy, under the FiT system, the power utility company (Tenaga Nasional Berhad in most cases) is obliged to buy solar PV electricity generated from sun light by approved private producer at a fixed premium price for a duration of 21 years.

 

The implementation of the Feed-In Tariff is being carried out after year of careful studies by the Malaysian government of the successes and failures of similar policies in countries abroad.

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