Useful information from the recent SEDA Malaysia Open Day

The SEDA Open Day was organised on October 20, 2013 in Kuala Lumpur and although I am not one of the participants, it appeared to be a great session for licence holders and enthusiasts alike.

I posted an article about the Open Day a couple of weeks ago and felt obliged to post this one here in appreciation to a comment by one of our readers. The reader provided very good tips and information. Among others, they are:

a) What happen after the 21-year agreement between FiAH and TNB?

After the expiry of the 21-year  Renewable Energy Power Purchasing Agreement (REPPA) between FiAH and TNB, a Net-Metering scheme would probably be used. In Net-metering, energy generated from the solar panel can be used by the home owner and any excess electricity not used will be exported to TNB's grid and the amount will be deducted from the owner's energy consumption bill.

b) Issue pertaining to additional bonus rate in the FiT

Additional bonus rate for solar panels used as a building material will be subject to verification by SEDA inspector. Bonus rate can only be given if SEDA is satisfied with the installation.

c) What happen if my solar PV system is not performing, i.e. it is not feeding into TNB's grid?

Although REPPA states that FiAH would feed all electricity generated from the solar PV system, there will be no penalty from TNB in case of non performance. This is applicable only to residential installations, and not non-individual installations.

d) Can I increase the capacity of my solar PV installation?

Existing FiAHs can submit application to SEDA to increase the capacity of their solar systems. Approval by the authority is subject to availability of quota at the time the application is submitted.

e) I saw that there is a projected degression rate in the SEDA website. Will there be changes to the published rates?

Degression rate may change as SEDA sees fit. For 2014 degression rate, SEDA has submitted its proposal to the Ministry of Energy, Green Technology and Water (KETTHA) for approval. A revised rate would be published at its website.

f) Is the income from solar PV installation at home subject to taxation?

Income from solar PV installation at homes are subject to income tax. SEDA informed that the Treasury has rejected its proposal to exempt domestic installations from income tax.

g) There seem to be delays in payment to FiAHs from TNB?

TNB's Dr Ahmad Jaafar assured that TNB will pay licence holders (FiAHs) within 30 days of verified invoice as contained in the REPPA. FiAHs can check TNB e-Services website after mid Nov 2013 to view their Renewable Energy Payment Advice.


Note: SEDA informed that there will be no more quota release for 2013. As such, home owners interested to install grid connected solar PV system at their homes will have to wait for 2014 quota.

Credit to the our commenter, Unknown, for this information.


Abbreviations:
REPPA - Renewable Energy Power Purchase Agreement
FiAH - Feed-in Approval Holder

Cypark and TNB signed Renewable Energy Power Purchase Agreement

Cypark Resources Berhad is one of the earlier takers of the RE quota made available by the federal government under the Renewable Energy Act 2011. 

Through this Act, the government formed Sustainable Energy Development Authority of Malaysia (SEDA Malaysia), a statutory body that administers and manages the implementation of the feed-in tariff (FiT) mechanism. Four renewable energy sources covered by this Act are Biogas, Biomass, Small Hydro and Solar PV.

I understand that another winning bidder of the non-individual category is Sabah Energy Corporation (SEC) in a joint-venture exercise with Sabah Electricity Sdn Bhd (SESB), a subsidiary of Tenaga National Berhad. The JV secured but all the available quota for the state of Sabah. Not very healthy for a noble intention to get more Corporations involve in reaping the benefit of the FiT.

Cypark's initiative can be seen moving aggressively; refer to the following images. We are yet to hear where and when is the JV of SEC-SESB going to start.

Dec 2011 file pix of Cypark's solar plant under construction, next to the Pajam landfil.
Image by The Star Online

Cypark's solar farm - Image by The Edge Malaysia

The rest of the news:

As reported by Business Times on 30-3-2012, environmental engineering and renewable energy specialist Cypark Resources Berhad, via two wholly-owned subsidiaries, has signed the renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB) for a FiT concession period of 21 years.

The deal sealed by Cypark Suria (Pajam) Sdn Bhd and Cypark Suria (Negeri Sembilan) Sdn Bhd is for electricity generated from the parent company's 8MW solar park in Pajam, Negri Sembilan.With the deal signed under the Renewable Energy (RE) Act 2011, Cypark can sell its solar energy to TNB grid starting from March 28 this year.

"Cypark will start receiving payment from TNB within 21 days after monthly billing is issued. The total green energy sales from the 8MW solar plant is about RM11 million annually," Cypark group chief executive Daud Ahmad said in a statement.

He said Cypark is now focusing its effort in building other new solar projects in four states, with targeted additional solar power installed capacity of 25MW by year-end.

Starting from year 2013, Cypark expects to generate annual combined revenue of up to RM45 million from the implementation of 33MW solar farms alone and the revenue will be recurring until year 2033. Cypark's Pajam solar park, identified under Economic Transformation Programme, is part of the 15MW integrated renewable energy park project undertaken by the Main-Board listed company.