Feed-in Tariff

A utility may buy-back” RE generated electricity from the generators at an agreed RE tariff. Under the SREP programme, the utility purchases the RE generated electricity at tariffs up to a maximum of RM 0.21 per kWh (from biomass waste).

For RE in the form of PV generated electricity, TNB has generously agreed to buy-back the PV generated electricity under a “Net-Metering” concept., whereby the rate TNB pays for the PV generated electricity is the same as it charges consumers.

A “Feed-In-Tariff* (FIT)” is an enhanced rate paid by the utility for RE generated electricity it purchases from the RE generators.

Under the net-metering concept, the reconciliation for the PV generated electricity is “contra” against the highest block rate of the tariff in question. This means that for domestic consumers the net-metering rate could be RM 0.46 per kWh, if the user consumption exceeds 900 kWh per month, or lower according to the tariff block under the TNB’s tariff now in effect (from 1 July 2008).

The rate for commercial consumers depends on the tariff under which they take supply e.g.:
For supply at low voltage (LV – Tariff B) it is RM 0.408 per kWh for consumption exceeding 200 kWh per month, while

For medium voltage (MV, or MD tariff i.e. tariff with a maximum demand component) the rate is the energy charge only; the MD component is accounted for by the consumer’s reduced MD as the PV generates electricity during the day load MD period and reduces the measured peak  demand. (Commercial consumers who use air-conditioning have their MD during the day peak demand period).
* Note:

Several countries pay an “Enhanced FIT” where the tariff for the RE generated electricity is higher than the electricity tariff charged to consumers, but this does not apply in Malaysia at present.