This post is courtesy of The Star.
Only most FiT-ting bid for Renewable Energy Production
PUTRAJAYA: Those intending to cash in on renewable energy (RE) production using solar power may need to go through an open bidding process in the future if demand continues to outstrip the funds available, said Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili.
He said response to the solar photovoltaic (PV) segment of the Government’s Feed-in-Tariff (FiT) system – which pays consumers monthly for energy sent back into the national power grid – had been overwhelming since it was launched in 2011.
Under the FiT system – which has an annual fund size of RM300mil and currently only applies to the peninsula – participating consumers are paid for feeding energy produced using one of four different power sources back into the national grid.
For example, a medium-sized house with a 4KW solar PV system can earn around RM550 a month based on monthly generation of 400KWh of power fed back into the grid.
Seda figures show that solar PV – which cover both individual and non-individual categories – accounts for 141.58MW or around 41% of the total power production quota set aside under the FiT.
The remaining categories are small hydroelectric (99.35MW/28.8%), biomass (88.89MW/25.7%) and biogas (15.53MW/4.5%).
Maximus indicated that this was a good problem to have as the Government was keen on increasing the number of households and commercial operations involved in RE production, adding that the quotas would likely be revised upwards if there was a strong enough demand.
Seda is also in talks with three other banks to provide similar financing packages to what is being offered by Alliance Bank to encourage more people to install solar PV systems.