Government Incentive - FiT
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- Category: Article
- Published: Thursday, 25 June 2020 12:10
- Written by Administrator
- Hits: 1972
Malaysia's Feed-in Tariff (FiT) system obliges Distribution Licensees (DLs) to buy from Feed-in Approval Holders (FIAHs) the electricity produced from renewable resources (renewable energy) and sets the FiT rate.
The DLs will pay for renewable energy supplied to the electricity grid for a specific duration.
The duration is 16 years for biomass and biogas resources, and 21 years for small hydropower and solar photovoltaic technologies.
The passing of the RE and SEDA Acts 2011 in April 2011 did not happen by chance. Introduction of the feed-in tariff (FiT) to Malaysia began as early as 2004, and in 2011, the years of effort finally culminated in the passing of the two laws related to sustainable energy.