The Malaysia government has unveiled new degression and bonus rates for biomass, biogas and solar photovoltaic (PV) under its Feed-in Tariff (FiT) mechanism for the generation of renewable energy up to 30 MW in size.

During the International Sustainable Energy Summit 2014 held on the 17-18 2014 March in Kuala Lumpur, the Sustainable Energy Development Authority (SEDA) Malaysia announced that the degression rates for both biomass and biogas have been reduced from 0.5% to 0%. In addition, the bonus rates for using Malaysian manufactured or assembled gas engine, boiler or gasifiers have been increased five-fold to RM0.05 per kWh. The reduced degression rates and increased bonus rates aim to boost the low take up rates of biomass and biogas. They have been effective since 1 January 2014.

Meanwhile the degression rates for solar photovoltaic (PV) are adjusted to a flat rate of 10% for installations with capacity up to 5 KW for individual and 24KW for non individual. For solar PV facilities using locally manufactured or assembled solar PV modules or solar inverter, the degression rates have remained unchanged at 0%, while bonus rates have been uplifted to RM 0.05 per kWh. The new degression and bonus rates for solar PV have come into force on 15 March 2014.

In addition to the revised rates, SEDA is amending the rules and administrative guidelines for the FiT program, among them a proposed new application method alternative to FiT Online System and a new category for community.

SEDA, which was established in 2011, manages the FiT mechanism under the Renewable Energy Act 2011. As of 31 January 2014, SEDA had approved 2760 FiT applications with a total renewable energy capacity of 536.07MW, comprising solar PV (39%), biomass (31.06%), hydropower (24.44%) and biogas (5.51%).