It is true that you might be eligible to install a solar panel on your roof, get electricity power generated, then sell it back to TNB at a price that’s higher than you purchase. Therefore, making monthly passive income. How does this work? Watch the video explanation by expert William Lean below:
First, a little bit of history: The parliament of Malaysia created a renewable energy act two years ago. They created the Renewable Energy Fund (RE Fund). The Renewable Energy Fund is basically a tax for everyone who uses more than RM77 a month of electricity.
The tax has taken about 1% from you since December 2011. This 1% will go to Renewable Energy Fund which has about RM300 million per annum and is administered by Tenaga National. Notice, though, the word used is “administered” not “paid.” The money will be paid by the RE fund.
Before we can get in to all the goodies, we first have to apply for a quota. They call it the Feed-in Tariff Quota from SEDA (Sustainable Energy Development Authority), which is a department of the Ministry of Energy. So, we are dealing with government companies here. So, what I hope to do is teach you how to maneuver through the system and get back some of the money which you have put aside for renewable energy.
I mentioned earlier that there is a quota on how much Tenaga can pay out since we’re taxed by about RM300 million per annum. So, everybody has got to apply for the quota from the SEDA. The application is done through the Internet. The application is on a first-come, first-served basis for the Individual Sector which is who we are.
The individuals who have their own roof top at the top of their house. For 2013, they kept it at 20 mW. What is 20 mW? It is the equivalent of 1700 houses of 12 kW. If you go for a size of 4 kW, then we are talking about 3,000-4,000 houses.
But, you might be getting confused. You might be thinking what is Kilowatt? Kilowatt is a measure of the capacity of the solar panel. It’s a bit like a car engine – a car can be 1.5c or a 2.0cc. So, it’s a bit like power plants. What is the kilowatt of your solar power system? Is it a 4 kW? A 4 kW is typical for a linked house. A 6 kW to 8 kW is typical for a semi-detached. A bungalow can fit a 12 kW. This is just a guide to give you a sense of the range.
All Malaysian IC holders can apply for up to 2 x 12 kW. Since you’re coming to the second half of the year, there’s only a quota of about 1.8 mW left, enough for 200 to 400 houses.
A 12 kW system roughly requires 1000 sqft of roof space. So, a lot of you would say, “Hey, I don’t know how big my roof is.” Well, to be fair, most developers do not give, what we call, a roof plan. Ideally, we need to look at the roof plan, so we can calculate how many solar panels you can fit on the roof. But, no worries – if you don’t have the roof plan, one of the installers can come over and provide you a quotation anyway.
For Premium Webinar Members (PWM), you can watch the full session here:
My blog subscriber, Arjunaidi Jamaludin had successfully installed the solar panel and he was being featured in Astro Awani. You can watch the video clip of the interview here.
