Wednesday, March 27, 2013

SEDA Malaysia announced release of 20 MW solar PV quota for non-individuals under 500kW

Announcement date       : Wednesday, 27 March 2013
Solar PV quota               : 20 MW
Category                         : under 500kW, non-individual
Opening date                  : 2 April 2013, 12.00 noon
Degression rate               : 20% for installation exceeding 24kWp
Degression rate (bonus criteria) : changed from 8% to 0%
Degression effective date          : 28 March 2013

SEDA Malaysia Announces Opening of 20 MW of Solar PV quota on 2nd April 2013

Sustainable Energy Development Authority Malaysia (SEDA Malaysia) have announced the long anticipated solar photovoltaic (PV) release of the 20 MW of solar PV quota for the non-individuals under the 500kW category.

The solar PV quota will be released on Tuesday, 2nd April 2013 at 12 noon. Chairman of SEDA Malaysia, YB Tan Sri Dr Fong Chan Onn said that these 20 MW solar PV quotas is subjected to the degression rates of 20%, for installed capacity exceeding 24 kW, as previously announced by the Ministry of Energy, Green Technology and Water (KeTTHA).

Snapshot of the current SEDA FiT rate. For installation size of above 24kW, due to the announced 20% degression rate, come Jan 1, 2014, FiT rate would not be RM0.9988/kWh but lower.

The degression rates for bonus criteria of locally manufactured PV modules and inverters have been reduced from 8% to 0%. These degression rates are effective as of 28th March 2013.

Feed-in Approval (FiA) applicants who are applying for the 2013 solar PV quota need to ensure that their solar PV systems are commissioned before the 1st January 2014. If they are unable to commission within the FiA application’s approval year, their FiT rates for the following year shall be subjected to the degression rates prevailing at the point of application, i.e. 20%

Example of the consequence of the inability of FiAHs to have their solar PV systems commissioned before the 1st January 2014:

Installed PV capacity: >24kWp
Degression rate: 20%
Note: SEDA Malaysia is obliged to review the degression rates twice a year

If the degression rates are subsequently revised downward to say 9% on 1st January 2014, any feed-in approval holders (FiAHs) of 2013 who fail to commission their PV systems (installed capacity > 24 kW) by 31st December 2013 is still subjected to the degression rate at the point of application which will be 20%.

The new 9% degression rate is only applicable to applicants who applied after 31st December 2013. This means any FiAHs who are unable to commission their solar PV system before 1 January 2014 will have their rates degress to another 20%.

Source: SEDA Malaysia press release

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