Frequently Asked Questions
The excess energy will be credited in your usual utility bill. The credit (excess energy) to NEM consumer will be based on prevailing Displaced Cost for the relevant supply voltage level at the Point of Common Coupling.
The calculation for the net billing of electricity will be based on the following calculation:Net billing = [Energy Consumed from DL (kWh) x Gazetted Tariff] – [Energy Exported to DL (kWh) x Displaced Cost]
Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred on a green technology project from the year of assessment 2013 (date on which the first qualifying capital expenditure incurred is not earlier than 25 October 2013) until the year of assessment 2020. The allowance can be offset against 70% of statutory income in the year of assessment. Unutilised allowances can be carried forward until they are fully absorbed.Green technology project related to renewable energy, energy efficiency, green building, green data centre, and waste management can qualify for this tax incentive. Please refer to the Guideline for Application for incentives and/or Expatriate Posts for Green Technology (GT) at www.mida.gov.my for more details.
Capital allowances are deductions claimable for the wear and tear of qualifying fixed assets such as industrial machinery, office equipment and sign boards. Under Capital Allowance, Solar PV system could categorised as Plant & Machinery and is eligible for depreciation over the period of 6 years.
It comprises the following types of provisions:
- Initial allowance 20% (IA – for the first year allowance)
- Annual allowance 14% (AA – for subsequent years until the full amount is availed)
- Balancing allowance; and
- Balancing charge