Renewable Energy Promotion Mechanisms

(a) Feed In Tariff (FIT)

A FIT pays you for excess electricity generated by your solar PV system and not used in your home. It requires two meters, one to measure consumption and the other to measure generation. It is more complex than net-metering because a second meter and additional wiring are required.

(b) Net-metering

The net-metering uses only one meter which runs backwards when a home owner’s solar panels are producing more electricity than the property is using, sending the excess energy back through transmission lines to other customers. It is simpler to implement.

(c) Tender

Investors compete for a project through a competitive bidding system initiated by a government department or agency. If the number of bidders to provide renewable energy is enough, those with lowest costs will win the contract. The regulator guarantees the price reached in the auction for the energy to be generated by the winner by signing a long-term contract.

Other types of renewable energy promotion instruments include power purchase agreements, subsidies and grants, research and development supports and voluntary green energy programmes.

(d) Net-billing

This mechanism has been put in place by the Central Electricity Board (CEB) under the Budget 2018/2019, suitable for those under tariff 110, 120 and 140 with a monthly consumption up to 200 kWh. The investment cost is fully incurred by the CEB and the system installation and maintenance as well. For more details on the scheme proposed by the CEB, Click here for more.

(e) Gross-metering

This mechanism controls the CEB MSDG RE Scheme whereby non-residential bodies are encouraged to produce electricity using solar photovoltaic systems and export the power on the grid, bridging the gap to reach the 35% national target renewable energy production by 2025. Production and import-export meters are used to control the system's power generation and the cost of equipment is borne by the prosumers. An impact assessment and survey are conducted first for best commercial practices. For more details on the scheme proposed by the CEB, Click here for more.