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Determination of FiT Rate
The FiT rate is the fixed premium price at which TNB will pay the FiAH for the solar PV electricity that the FiAH are supplying to TNB grid. The FiT rate is stated in Ringgit Malaysia per kWh of electricity sold.
The FiT is determined mainly by four factors :
The size of the solar PV system.
The FiT rate is lower for bigger systems to account for reduced cost of large capacity installation.
The initial date at which the solar PV system starts supplying electricity to TNB.
Normally, this is the date of system commissioning. The FiT rate is progressively lowered by SEDA every year in line with the reducing cost of solar PV technology as the industry matures.
The type of solar PV system installed.
Higher FiT rate is given to solar PV installation that is integrated as part of the building structure or installed on a building. Stand alone solar system (example: a solar farm) receives lower FiT rate because dedicated space is needed for production of the solar electricity, reducing its positive impact on the environment.
The use of locally manufactured/assembled solar equipments.
Use of locally manufactured solar panel and solar inverter is entitled to get additional bonus FiT rate.                                                                                                                    
Example of FiT Rate Calculation
SEDA decides and publishes the FiT rate for each year. Figure 2.3 shows the FiT rates for year 2013 and 2014. Notice that the rate reduces yearly.
The following example illustrates the determination of the FiT rate for solar PV project.
Example: In year 2012, a factory owner applies to SEDA for a 24KW solar PV installation on his factory’s roof. The system is planned to be commissioned in year 2013 when the factory will start supplying electricity to TNB. The solar equipments are imported from abroad.
Referring to Figure 2.3, the factory owner will receive:

1. Basic FiT = 1.1040 [Item a(ii)]
2. Bonus FiT = +0.2392 [Bonus b(i)]
Final FiT rate the owner will receive 1.1040 + 0.2392 = RM1.3432/kWh of solar electricity.
FiT Rates for Solar PV (21 years from FiT Commencement Date)
Description of Qualifying Renewable Energy Installation
(a) Basic FiT rates having installed capacity of:
FiT Rates (RM per kWh)
2013 2014
(i) up to and including 4kW 1.1316 1.0411
(ii) above 4kW and up to and including 24kW 1.1040 1.0157
(iii) above 24kW and up to and including 72kW 0.9440 0.7552
(iv) above 72kW and up to and including 1MW 0.9120 0.7296
(v) above 1MW and up to and including 10MW 0.7600 0.6080
(vi) above 10MW and up to and including 30MW 0.6800 0.5440
(b) Bonus FiT rates having the following criteria (one or more) : 2013 2014
(i) use as installation in builldings or building structures +0.2392 +0.2201
(ii) use as building materials +0.2300 +0.2116
(iii) use of locally manufactured or assembled solar PV modules +0.0300 +0.0300
(iv) use of locally manufactured or assembled solar inverters +0.0100 +0.0100
FiT Rates from year 2013 to 2014.
Source of Data: Sustainable Energy Development Authority (SEDA) homepage.
The owner can also choose to integrate solar panel as part for his factory’s roof. To do this, the owner will has to dismantle the existing roof and rebuild it using solar panel. The solar panels will now serve 2 purposes. One of the purpose is as the roof of the factory and secondly, as part of the solar PV system. In this case, the owner will receive:

3. Additional Bonus = +0.2300 [Bonus b(ii)]
This makes the final FiT rate 1.3432 + 0.2300 = RM1.5732/KWh of solar electricity
                        Example of usage of PV panel “as building materials”
Example of usage of PV panel “as installation in buildings or building structures”.


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