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A solar farm in in Malaysia. (Photo: iStock)
The Ministry of Energy Transition and Water Transformation of Malaysia (PETRA) has launched a new tiered pricing mechanism with lower rates for the Green Electricity Tariff (GET) program set to a quota of 6,600 GWh this year.
According to a statement from PETRA, the new rates are set at 10 sen per kWh for domestic and non-domestic low-voltage users, and 20 sen per kWh for non-domestic medium and high-voltage users. In 2023, the GET rate was higher at 21.8 sen per kWh.
“Funds collected from the program will be used to further boost national energy transition efforts to increase the capacity of renewable energy, such as the Solar for Rakyat Incentive Scheme, which has been introduced recently,” the ministry added.
PETRA noted that users can subscribe via myTNB portal starting from May. 3. The option for backdated subscriptions, which are applicable for periods starting from Jan. 1 this year, will be available for those subscribing between May. 3 and May. 31.
Subscription to new GET rates will entail a lock-in period until Dec. 31 every year, with automatic renewal for a one-year period if not canceled, the ministry said, while reiterating that imbalance cost pass-through (ICPT) charges will not be imposed.
GET is an initiative by Malaysian government to provide green electricity to customers of state-controlled Tenaga Nasional Bhd who intend to reduce carbon footprint.
The program has supplied 6,762 GWh of green electricity to 2,461 users across various categories since introduced in 2021, and helped to meet environmental, social and governance commitments, especially in terms of greenhouse gas emissions avoidance, according to PETRA.
Under the initiative, subscribers will receive a Malaysia Renewable Energy Certificate to prove that the electricity consumed was from renewables, in compliance with industry practices aimed at reducing carbon footprint.
Those do not subscribe to GET will be charged under the ICPT, which adjusts electricity tariffs based on changes in fuel prices for power generation. During the first half of 2024, those consuming over 1,500 kWh a month will pay an ICPT surcharge of 10 sen per kWh.
Small and medium enterprises, categorized as non-domestic consumers in the low-voltage category, benefit from an ICPT surcharge of 3.7 sen per kWh. Meanwhile, commercial and industrial users in the medium- and high-voltage categories face a charge of 17 sen per kWh.
