This is a follow up to the 30 March post on the Malaysian government’s Feed-in-Tariff (FiT) program for homeowners to become independent power producers and thereby promote the utilization of 100% free and renewable energy and achieve a reduction in carbon emissions.
This is an illustration of how it works:
The system is designed such that all the electricity produced from your rooftop is fed into the power grid. Thus there is no netting between what you produce and consume. If you sign up for FiT in 2013 the government pays you RM1.34 per kWh for the next 21 years – guaranteed by law. My electricty bill for February was RM634.95 as I had consumed 1569 kWh, my average charge was therefore 40.4 sen per unit.
Why is the Government so kind to those who will do FiT?
Well, it isn’t the Government that is being kind to the FiTters. Check your bill and you will see this line item Kumpulan WangTenaga Boleh Baharu which is a 1% surcharge to every account holder who has consumed more than 300kWh per month to fund this renewable energy program. There is now talk that this surcharge of 1% (estimated to be worth RM700 million annually) may soon be doubled to provide more funds.
Another important factor to bear in mind for those interested to be a FiTter is that the payment rate has reduced by a whopping 8% year on year since 2011. In 2014, the gazetted rated is RM1.24 per kWh. Ostensibly, the reduction is in tandem with the expected lowering of PV system costs. It does not work like this in life. So the early birds do benefit more. Lock in the 2013 rate for the next 21 years and do so by June 2013 as the application and approval process, culminating in testing and commissioning by Tenaga Nasional, will take a few months.
Paul Leong from P2 and I have met with selected vendors who can deliver such a system and we have decided to nominate a particular authority-approved vendor which has offered the most attractive package. We shall not name the nominated company in this blog as they have ongoing discussions with other customers with whom the price offered to GC residents may not be available to these other potential customers. We will release the details of the proposal to only those who are genuinely interested for direct dealings with the company concerned.
The rooftops in GC should be able to accommodate an 8kW system with the larger bungalows going further to 12kW. A site survey must be conducted to determine the capacity as the roof alignment may not be so ideal.
The proposals at a glance:
12 kW System
8 kW System
|PV Modules -Monocrystalline||45 pieces of Trina 265Wp||30 pieces of Trina 265Wp|
|Module Surface Area||72 sq meters||48 sq meters|
|Inverter||SMA Sunny Tripower STP 12000TL||SMA Sunny Tripower
|Expected Annual Energy Yield||14,310 kWh pa||9,540 kWh|
|Average Annual FiT Income||RM19,239||RM12,826.00|
|Maximin AC Power||12 kW||8 kW|
|Performance Ratio||80% approx||80% approx|
|CO2 Reduction per Annum||9.02 tonnes||6.02 tonnes|
|Payback Period||5 years||5 years|
|Discount for 10 pax||RM9,700||RM7000|
|Warranties||10 years manufacturing defects for PV ModulesPower output guarantee:> 90% in 10 years> 80% in 25 yearsInverter -5 years standard warranty; 98% Inverter efficiency||10 years manufacturing defects for PV ModulesPower output guarantee:> 90% in 10 years> 80% in 25 yearsInverter -5 years standard warranty; 98% Inverter efficiency|
This is a serious investment proposal with real returns that are guaranteed. There are not many investments that will pay you 17% – 18% per annum for the next 21 years. There are leasing companies which back this kind of investment in solar technology, if there is a need for financing.
Please contact me (email@example.com) if you are interested and I shall send the details of the proposal to you. To qualify for the discount shown above, the supplier expects at least 10 customers.