Overview of SEDA

The Sustainable Energy Development Authority of Malaysia (SEDA

Malaysia) is a statutory body formed under the Sustainable Energy
Development Authority Act 2011 [Act 726]. The key role of SEDA is to
administer and manage the implementation of the feed-in tariff mechanism
which is mandated under the Renewable Energy Act 2011 [Act 725].

Functions of SEDA Malaysia

SEDA Malaysia has all the functions conferred on it under the Renewable Energy
Act 2011, any other sustainable energy laws as well as the following functions:
To advise the Minister and relevant Government Entities on all matters relating to
sustainable energy including recommendations on policies laws and actions to be
applied to promote sustainable energy;
To promote and implement the national policy objectives for renewable energy;
To promote, stimulate, facilitate and develop sustainable energy;
To implement, manage, monitor and review the feed-in tariff system including to
carry out investigations, collect, record and maintain data, information and
statistics concerning the feed-in tariff system, and to provide such data
information and statistics to the Minister as he may from time to time require;

CONTINUED
To implement sustainable energy laws and to recommend reform to such laws
to the Federal Government;
To promote private sector investment in the sustainable energy sector
including to recommend to the relevant Government Entities incentives in
relation to taxes, customs and excise duties and other fiscal incentives
applicable to such investment;
To carry out or arrange for the conduct of researches, assessments, studies
and advisory services, collate, analyse and publish information, statistics and
factors influencing or relevant to the development of sustainable energy and to
disseminate such relevant information, statistics and factors to Government
Entities, the public and investors or potential investors investing in sustainable
energy;

Continued
To conduct promote and support, in such manner as SEDA Malaysia deems fit,
research and innovation activities relating to sustainable energy;
To conduct, promote and support, in such manner as SEDA Malaysia deems
fit, training or other programmes relating to the development of human
resources and capacity building in the sustainable energy sector;
To implement measures to promote public participation and to improve public
awareness on matters relating to sustainable energy;
To act as a focal point to assist the Minister on:
matters relating to sustainable energy; and
climate change matters relating to energy
To carry out any other functions conferred by or under any sustainable energy
law and to perform any other functions that are supplemental incidental or
consequential to any of the functions above.

Overview of the FiT System in Malaysia

Malaysia's Feed-in Tariff (FiT) system obliges Distribution Licensees (DLs) to
buy from Feed-in Approval Holders (FIAHs) the electricity produced from
renewable resources (renewable energy) and sets the FiT rate. The DLs will
pay for renewable energy supplied to the electricity grid for a specific duration

By guaranteeing access to the grid and setting a favourable price per unit
of renewable energy, the FiT mechanism would ensure that renewable
energy becomes a viable and sound long-term investment for companies
industries and also for individuals.

Key terminologies in FiT:

oDistribution Licensees: Companies holding the licence to distribute electricity
(e.g. TNB, SESB, NUR).
oFeed-in Approval Holder: An individual or company who holds a feed-in
approval certificate issued by SEDA Malaysia. The holder is eligible to sell
renewable energy at the FiT rate.
oFiT rate: Fixed premium rate payable for each unit of renewable energy sold
to Distribution Licensees. The FiT rate differs for different renewable resources
and installed capacities. Bonus FiT rate applies when the criteria for bonus
conditions are met.

oIndigenous: Renewable resources must be from within Malaysia and are not
imported from other countries.
oDuration: Period of which the renewable electricity could be sold to
distribution licensees and paid with the FiT rate. The duration is based on the
characteristics of the renewable resources and technologies. The duration is
16 years for biomass and biogas resources, and 21 years for small
hydropower and solar photovoltaic technologies.

National Renewable Energy Policy and Action Plan (2009)

The Policy Vision
Enhancing the utilisation of indigenous renewable energy (RE) resources to
contribute towards national electricity supply security and sustainable
socioeconomic
development.
The Objectives
To increase RE contribution in the national power generation mix;
To facilitate the growth of the RE industry;
To ensure reasonable RE generation costs;
To conserve the environment for future generations; and
To enhance awareness on the role and importance of RE.

How to Apply for FiA for Solar PV Installations 72kW

If you are thinking of having your own Solar PV system, the Feed-in Tariff (FiT)
system is the way to go. It gives everyone the chance to produce their own
renewable energy (RE), make profit and help to conserve the environment. What
is next? Please go through the steps as shown in the flow chart and seek a
service provider who is able to advise you on how much you are willing to invest
including the installation capacity, how much energy you can generate and your
monthly income based on energy generation per month. Not only that, you are
also reducing your own carbon footprint which is good for the environment and all
of us.
The advantages and benefits of installing renewable energy and benefitting of FiT
are numerous. But many are put off on how to get started. Therefore, this
flowchart may serve as a guide for you on step by step towards achieving your
objective. What you need to do is to check your eligibility and tariff rate as in Step
1. Once you have satisfied all the criteria, you can then follow through the rest of
the steps

The Feed-in Approval (FiA) application steps are as follows:

Step 1
Renewable Energy (Feed-in Approval) Rules 2011
Renewable Energy (Criteria for Renewable Resources) Rules 2011
Renewable Energy (Eligibility Criteria for Feed-in Tariff Rate) Rules 2011
Renewable Energy (Renewable Energy Power Purchase Agreements) Rules 2011
SEDA Malaysia : RE quota (application based on scheduled FiT Commencement
Date)

Step 2
Secure legal rights to the site of the RE installation / letter of intent
from the site owner (if you do not own the property)
Design RE installation (capacity, technical details, etc)
Check relevant local authority and other governmental
requirements
Contact potential financier & obtain financing offer letters/term sheet
Prepare work plan & major milestones

Step 3
Apply for FiA (either through online or manual submission)
Approved
Step 4
Sign Renewable Energy Power Purchase Agreement (REPPA) with relevant
Distribution Licensee (DL)
Register the signed REPPA with SEDA Malaysia
Step 5
Sign financing agreement(s) and fulfill all conditions to first drawdown
Step 6
Service provider/ contractor to commence & complete PV system

Step 7
FiT meter installation
Step 8
Carry out Acceptance Test (to be verified & certified by Qualified Person)
Step 9
Register with Energy Commission
Step 10
FiT Commencement Date
Give notice of FiT Commencement Date to SEDA Malaysia & DL before
and after FiT Commencement Date
Start of FiT duration

Step 11
Monthly meter readings
DL will issue monthly payment advice to FiA holder after meter is read
FiT payment to be paid by DL within 30 days after issuance of payment advice