What is the Feed-in Tariff (FiT)?
The FiT System is Malaysia’s new mechanism under the Renewable Energy Policy and Action Plan and the Renewable Energy Act 2011 catalysing generation of renewable energy, up to 30 MW in size.
This mechanism allows electricity produced from indigenous renewable resources to be sold to power utilities at a fixed premium price for a specific duration.
Who will oversee the running of the FiT System?
The management and running of the FiT System will be carried out and overseen by the Sustainable Energy Development Authority Malaysia (“SEDA Malaysia”), a statutory body under the Ministry of Energy,
Green Technology and Water, established under the Sustainable Energy Development Authority Act 2011.
Is income from feed-in tariffs considered taxable income?
Yes, it is taxable income and any exemptions would require a policy decision from the Government. KeTTHA will monitor the progress of renewable energy growth
in the country and conduct necessary analyses before putting forth any policy recommendations on this matter.
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