Year:2011 (last updated 2016)
Policy status:In Force
Date Effective:2011 (last updated 2016)
Date Amended:

2014 - new, lowered FIT announced;

2015 - geothermal FIT announced;

2015 - lowered FIT for solar PV announced entering into force on 1st of January 2016;

Policy Type:Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums
Policy Target:Solar>Solar photovoltaic, Bioenergy>Biomass for power, Hydropower, Bioenergy
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
Agency:Ministry of energy, Green technology and water

The Renewable Energy Act 2011 was enforced on 1st  April December 2011 Malaysia establishing the feed-in tariffs (FIT) system with an annual installed capacity caps to 2030.

Costs of the system are transferred onto electricity consumers who pay an additional surcharge of 1% on top of their electricity bills collected by the distribution licensees and deposited into the RE Fund, About 75% of domestic electricity costumers who consume less than 300 kWh/month will be exempted from contributing to the RE Fund.

To benefit from tariffs, renewable developers need to secure a Feed in Approval (FiA) from Sustainable Energy Development Authority (SEDA) Malaysia and conclude a RE Power Purchase Agreement with Distribution Levels (eg. TNB, SESB, public power utilities).

Existing RE power plants under the existing Small Renewable Energy Programme (SREP) under the RE Act 2011 are allowed to convert to the current FiT system.

FITs are ranging over a 21 year period for PV and mini hydro and 16 year period for biomass and biogas. 

Refer to for current tariffs and degression.


In May 2015 the feed-in tariff levels for geothermal plants were announced. Geothermal plants up to 30 MW are eligible for the FIT of MYR 0.45.kWh.

Related policies:Renewable Energy Policy and Action Plan

Last modified: Tue, 13 Sep 2016 11:59:12 CEST