In a sun-drenched country such as Malaysia, many are catching onto the benefits of Solar Power harnessing the power of the sun via solar panels for long-term financial payback. But just what are the mechanics behind Solar Power, and the Feed-in Tariff (FiT) that accompanies it?
Solar photo voltaic (PV) panels are affixed to rooftop or in ideal location on the ground to utilise energy from the sun.
What is FiT?
Feed-in Tariff(FiT) is a mechanism under the Renewable Energy (RE) Policy and action Plan to catalyse the generation of RE. The concept of FiT is when the Distribution Licensee (DL) such as TNB pays the Feed-in Approval Holder (e.g. homeowners) a premium tariff for clean energy that is generated.
The Feed-in Approval Holder is an individual or company that holds a feed-in approval certificate issued by Sustainable Energy Development Authority Malaysia (SEDA Malaysia) who is eligible to sell renewable energy generated by its Solar System back to TNB electrical network.
A PV meter (similar to the TNB meter) is installed to record the electricity generated by the solar panel and the amount is calculated using the FiT rate for every kilowatt-hour (kWh) it generates at a fixed price for a specific number of years.
Having the opportunity to produce your own electricity and helps you to hedge against rising energy prices. Better yet, you will be producing clean energy and helping to build a greener future for Malaysia.