SARE programme to allow consumers to instal solar panels in  their homes under a solar leasing concept

Pic By MUHD AMIN NAHARUL

Domestic and commercial users of solar power will enjoy cheaper electricity bills from Jan 1 under two revamped policies as the government seeks to make renewable energy (RE) a mainstay in the country’s power grid. 

Energy, Technology, Science, Environment and Climate Change Minister Yeo Bee Yin (picture) said the monthly electric bills reduction will be dependent on the size of the area to be fitted with the solar panel.

Yeo said the rebates is part of the “solar leasing” concept which offers better profits for solar power producers.

“We have decided to improve and expand the Supply Agreement for Renewable Energy (SARE) programme to allow consumers to instal solar panels in their homes under a solar leasing concept.

“Under solar leasing, there will be zero upfront cost where individuals do not not need to come out with any initial cost to instal the solar panels,” she told the Dewan Rakyat yesterday.

Yeo was responding to Ahmad Fadhli Shaari (PAS-Pasir Mas) who asked the government to state the progress of the proposed solar photovoltaic (PV) installations in residential properties nationwide.

She said the business model is similar to purchasing handphones, but is now applicable to solar panels.

“The monthly payments for solar power or repayments to the solar power company can be done through the TNB (Tenaga Nasional Bhd) bill,” she added.

Yeo also said members of the public who generate solar energy for personal use will get rebates from TNB at the same consumption tariff under the revised net energy metering (NEM) programme.

This is to ensure the NEM programme is feasible in terms of ringgit and sen to electricity consumers.

“From Jan 1, 2019, there will be no more differences in the selling and purchasing prices of electricity.

“TNB’s bill calculation will be based on one-on-one where the bill is similar to the clean consumption rate, which is the consumption minus generation times with tariff.”

Yeo said the current NEM system was not well received and as of October this year, only 17MW or 3% out of the 500MW quota was taken up.

She said the sale of excess solar power at a displaced cost to TNB was the reason behind the low take up by commercial and domestic users.

Currently, solar power producers are selling excess electricity to TNB at 31 sen/kWh compared to purchasing electricity at about 50 sen/kWh.

She said solar power has vast potential as a source of RE, noting that it contributed 380MW out of 566MW of RE.