Wednesday, May 11, 2011

More Incentives for Renewable Energy

[Picture from Google]
Firstly, my apologies for the slight mis-information in my previous article "Generate electricity at home and earn money".

In that article I stated "SESB will pay you up to RM1.75/unit for all “net” kWh your solar system feed-back to SESB grid"

Not so.

I met with Ungku Abdul Rahman (the Director of Power Technologies Sdn Bhd) a couple of days back and he mentioned that SESB will pay you the whole amount of energy produced at home and not the "net" kWH fed-back to their grid. Power Technologies S/B is one of the active turnkey Contractors for implementation of solar power systems in Malaysia. They are based in Shah Alam, Selangor.

What this means is that SESB will still bill you for the amount of energy consumed but at the same time pays you for whatever amount of energy generated by your home Solar System. This, according to him is the net effect of the recently enacted Renewable Energy (RE) Act 2010.

If you read my previous article, you might be pleasantly surprised that what you read in this updated article is a betterment of that information.

For example (previous figures re-used):

If your Solar System produced 200kWh this month and your energy consumption is 150kWH,
  • SESB bills you : RM20.40 (40kWH x RM0.24, 110kWH x RM0.18)
  • FIT, you get : RM350 (200kWH x RM1.75) RM1.75 is the max possible FIT rate.
  • Your INCOME = RM329.60 (RM350.00 - RM20.40)

Of course you'll still need to service your bank loan, so, this "Income" is not net yet. I mentioned bank loan as you are eligible to take up financing from any of the commercial bank around for setting up of the residential solar system.

The initial capital expenditure looks daunting but taking into account the government incentive, the bank financing, the return of investment, the guaranteed 21 years of FIT, it really is worth looking into.

FIT: feed-in tariff

Dont' you think Malaysia is committed to its pledge to reduce the carbon emission to help mother earth live another day?


gunsirit said...

This is indeed a very good idea, I have been since a long time ago interested in solar energy but I guess it is difficult to install it here in Sabah.

de engineur said...

gunsirit> it should be very much easier now with the enactment of the new law: Renewable Energy (RE) Act 2010.

i hope i will not be too late in queuing/applying for the domestic quota

rent serviced office said...

There's been a lot of debate about the feasibility of renewable energy sources.

de engineur said...

rent serviced office> Fund has been set up and 4 types of RE sources were identified for the feed-in tariff (Solar, Small Hydro, Biogas and Biomass)