SHAH ALAM, July 23 (Bernama) -- YB Puan Yeo Bee Yin, Minister of Energy, Science, Technology, Environment and Climate Change (MESTECC) today launched Goodyear’s solar PV system which is the largest system recorded under the net energy metering (NEM) scheme in the country. Located at Shah Alam, the PV system is rated 2.5 MWp and is expected to meet 11.5% of Goodyear’s daily electricity consumption. According to Minister YB Yeo, Goodyear’s PV system is exemplary of a rising tide of corporates who have strong commitment to meet their environmental, social and governance (ESG) obligations. Present at the launch was Ir Dr Sanjayan Velautham, CEO of Sustainable Energy Development Authority (SEDA) Malaysia, the implementor of the NEM and Mr Ramon Le, Director of Manufacturing operations Asia pacific of Goodyear Malaysia Berhad.
 
About Net Energy Metering (NEM)
NEM allows TNB’s electricity consumers (domestic, commercial, industrial and agriculture) to be solar prosumers (i.e. producers and consumers of electricity). The concept of NEM is that the energy produced from the installed solar PV system will be consumed first, and any excess energy will be exported to TNB. The NEM was first implemented at end of 2016. However, until end of 2018, the total approved capacity was only 27.81 MW. Since January 2019, the NEM scheme was enhanced to allow surplus solar electricity to be sold on a 1-on-1 basis. The enhancement was announced by Minister YB Yeo in October last year. Since then, within first six months of 2019, SEDA has approved 20.72 MW of NEM. The total quota allocated for NEM is 500 MW and the quota allocation is valid until end of 2020. More information on the NEM can be found in http://www.seda.gov.my/reportal/nem/).
 
Benefits of Going Solar
Given that Peninsular Malaysia has approximately 4.1 million buildings, there is a huge technical potential for solar PV for rooftop applications. Having solar PV systems will help consumers to save electricity bills and be part of the solution to climate change. Solar PV market can also help spawn economy, specifically it drives employment in this sector. Based on a report released by International Renewable Energy Agency (IRENA) with data provided by SEDA, Malaysia was acknowledged as the ASEAN region’s biggest solar photovoltaics (PV) employer with a total of more than 54,300 people working in the industry last year – up from 40,300 in 2017. This employment is inclusive of the manufacturing sector of which Malaysia is among top three PV producers in the world.
 
Next Steps for Customers
1. NEM Calculator: SEDA’s website features a NEM calculator and this calculator provides opportunity for customers to find out the estimated solar PV capacity that can fit into their rooftop, an estimated minimum upfront cost of investment, estimated monthly electricity savings, simple payback and impact on environmental indicators (www.seda.gov.my/nemcalculator). Customers who wish to install solar PV on their rooftops can either opt for outright purchase or leasing/power purchase agreement (PPA). The concept of leasing is similar to hire purchase whereas PPA is based on usage of solar electricity produced by the solar PV system.
 
2. Outright Purchase: If the customer is interested to go for outright purchase, SEDA has a directory of registered PV service providers that can provide this service. Currently there are 121 companies registered with this online directory (http://www.seda.gov.my/directory/2019-registered-pv-service-provider-directory/).
 
3. Leasing/ PPA: If the customer wishes to go for leasing or PPA option, SEDA has a directory of registered PV investors that can provide this service. Currently there are 40 companies registered with this online directory (http://www.seda.gov.my/directory/2019-registered-solar-pv-investor-rpvi-directory/).
 
4. TNB’s Supply Agreement for Renewable Energy (SARE): Under the leasing/PPA option, PV investors can opt to use TNB’s bill for their monthly billing and collection to their customers. SARE reduces counter-party risk faced by PV investors and the agreement is structured for companies, individuals and entities registered with the Registrar of Societies, Government and Partnership.
 
Government Incentives
According to Minister YB Yeo, the Government has set a target to achieve 20% of RE in the national installed capacity mix (excluding large hydro) by the year 2025. As at end of 2018, RE is 6% of the national installed capacity mix. The target calls for Government’s support and to this end, the Government has introduced fiscal incentives such as the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) that is administered by MIDA and Green Technology Financing Scheme (GTFS) 2.0 to encourage the growth of RE market. These incentives are valid until end of 2020 (http://www.seda.gov.my/reportal/re-incentive/).

Renewable Energy Transition Roadmap (RETR) 2035

In addition to measures on how to achieve the 20% RE target by 2025, SEDA has been mandated by MESTECC to develop the RETR which will chart the path to decarbonize our power sector. The roadmap is expected to conclude by end of this year.
 

ABOUT SEDA MALAYSIA
 

Sustainable Energy Development Authority (SEDA) Malaysia is a statutory body reporting to the Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC). SEDA was established in September 2011 under the SEDA Act 2011 [Act 726] with the key purpose of driving the renewable energy and energy efficiency agenda in the country.

SOURCE : Sustainable Energy Development Authority (SEDA) Malaysia