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Government Incentives (FIT)

The Feed in Tariff or FIT was introduced in 2011 and represents a significant step in Malaysia’s march towards having a green and sustainable energy future. With current electricity rates set to rise dramatically, the FIT is a welcome relief as, on average for a residential system up to 12KW, most households with a solar PV system are able to earn up to 2.5 times more than what they pay per KW in electricity bills.



solar cycle

How is this Possible?

SEDA and the Malaysian Government have come up with a funding structure in the form of a 1% energy levy imposed upon all Malaysian households who spend more than RM75 on their electricity bill. The collected levy is then used to pay households who have a Renewable Energy Producer Purchase Agreement (REPPA) with TNB. This levy is set to rise to 2%.


How much can you earn from the FIT?

The amount of money that can be earned varies from year to year as SEDA has imposed a degradation rate on the FIT. This year, homeowners can expect to earn an average of of RM1.16 per KW hour generated. TNB charges us an average of around 50 sen per KW hour used. A 4KW systems can bring in revenue of RM 107,000 over the 21 year contract with SEDA for an outlay of about RM38,000. Effectively, you are able to earn about 13%-14% per annum.


•   For the latest FIT rates, please visit www.seda.gov.my.


Who can apply for the FIT?

Anyone can apply for the FIT as long as you own your own residential or commercial property. Unfortunately, the FIT does not allow owners who have strata titles to apply for the FIT but they can install off grid systems to offset their energy usage. Nusolar currently provides solutions using the latest in battery storage technology to help the strata title owner to offset their energy usage.


How do I apply for the FIT?

Anyone can apply for the FIT and this can be done on the SEDA website. There are certain particulars which need to be filled in and all this information can be accessed from SEDA. Bear in mind that SEDA will only approve systems which have been certified by a qualified electrical engineer and solar PV systems designer. System integrators like Nusolar are able to do all the complicated paperwork for you free of charge once you decide to buy a solar PV system from us.



FIT Rates for Solar PV (21 years from FIT Commencement Date)

Description of Qualifying Renewable Energy Installation FiT Rates (RM per kWh)
(A) Basic FiT rates having installed capacity of :    2014    2015
(i) up to and including 4kW 1.0184 0.9166
(ii) above 4kW and up to and including 24kW 0.9936 0.8942
(iii) above 24kW and up to and including 72kW   0.7222
(B) Bonus FiT rates having the following criteria (one or more) :    2014    2015
(i) use as installation in buildings or building structures +0.2153 +0.1722
(ii) use as building materials +0.2070 +0.1656
(iii) use of locally manufactured or assembled solar PV modules +0.0500 +0.0500
(iv) use of locally manufactured or assembled solar inverters +0.0500 +0.0500