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Supply Agreement of Renewable Energy (SARE) Malaysia


What is the Supply Agreement of Renewable Energy (SARE) of Malaysia?

The Supply Agreement of Renewable Energy (SARE) of Malaysia is a programme that covers the related agreements and policies for the supplying and consuming of Renewable Energy (RE) in Malaysia.

Supply Agreement of Renewable Energy (SARE) Expansion and Update in 2019

According to the Minister of Energy, Science, Technology, Environment and Climate Change (MESTECC) YB Yeo Bee Yin, the Supply Agreement for Renewable Energy (SARE) programme will be expanded in 2019 to include the new Solar Leasing Concept where consumers will be able to lease the solar panels and install them at their households without the need of paying for the system.

With this policy, users can enjoy zero upfront cost to install photovoltaic (PV) panels, and payment for the monthly leasing fee or solar energy usage can be made to the solar company involved via TNB bills.

This concept is in line with the adoption of solar energy generation in Malaysia towards grid-parity, where cost per kilowatt hour (KWh) calculated under levelized cost of energy (LCOE) principle is the same with cost per KWh electricity generated from conventional fuel, namely coal and gas.

Solar technology has matured and costs have become more competitive and Solar PV panel prices has fell 80% since 2009. For this reason, quota for solar is no longer offered under the fit-in-tariff (FiT) mechanism.

The FiT mechanism involves renewable energy, namely biogas, biomass, geothermal mini-hydro as well as solar, which is now no longer offered.

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