The Feed-in Tariff (FiT) for Solar PV has been implemented in Malaysia since 2011 and it is already closed for registration since 2016. Net metering will be the next renewable energy implementation mechanism that replace the FiT programme.
The basic concept of feed-in tariff(FiT) is that the Distribution Licensee (TNB/SESB) pays the Feed-in Approval Holder a premium tariff for clean energy that is generated. This allows owners to sell their clean energy to the distribution licensee for a fixed number of years; the duration is dictated by the type of renewable energy used for power generation. The incentive provides a fixed payment from the electricity supplier for every kilowatt hour (kWh) of electricity generated and a guaranteed minimum payment for every kWh exported to the grid.