New Proposed Degression Rates for Solar PV Technology

March 5, 2013, Tuesday Kuala Lumpur: The Energy, Green Technology and Water Ministry said that the degression rate for solar PV with installed capacity of up to 24kW will remain at 8%.

Datuk Badaruddin Mahyudin, Deputy Secretary-General (Energy) said that the degression rate for solar PV with installed capacity of more than 24kW will increase from (the former) 8% to (now) 20%.

“There will be no degression rates for bonus criteria of locally manufactured PV modules and inverter as the rate will be reduced from 8% to 0%”, the Deputy Secretary-General said in a statement.

He also said that the latest degression rates will come into effect from next month and are applicable to solar PV quotas that were released this year.

Degression rates for solar PV technology are under the FiT mechanism which is being administered by SEDA Malaysia.

Meanwhile, SEDA Malaysia has also announced some changes in the rules and regulations and the administrative guidelines for renewable energy installations, which are as follow:

  • All companies registered in the e-FiT online system will be required to key-in information of all their ultimate beneficiary shareholders when the e-FiT online system opens on March 5.
  • They are required to provide documents related to ownership or shareholder’s, its structure (in percentage) disclosing all the ultimate beneficial shareholders.
  • Companies should update their profiles in which they are required to have minimum paid-up capital of RM20,000 for Feed in Approval (FiA) application of up to 72kW or RM50,000 for FiA application of more than 72kW.

Feed in Approval (FiA) applicants must also provide the latest memorandum and articles of association under the Companies Regulations 1966, showing power generation from renewable energy as part of their line of business.

Companies are also not allowed to make any changes to the immediate shareholders, which was previously declared at the previous submission of FiA.

source: The Star Malaysia