Malaysia increases green energy tariff for residential, industrial consumers

Malaysia has increased the green energy tariff for residential and industrial consumers through the Green Electricity Tariff (GET) program. The government is offering 4,500 GWh of power to residential and industrial customers each year. These customers will be charged an additional MYR 0.281 ($0.062) for each kilowatt-hour of renewable energy that is purchased.

Image: Wikimedia Commons, Khairul Hazim

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Malaysia's Ministry of Energy and Natural Resources says that the tariff of the Green Electricity Tariff (GET) program will be increased from MYR 0.037/kWh to MYR 0.281/kWh.

This tariff, which will go into effect on Aug. 1, is paid by domestic and industrial consumers in the country that want to buy electricity produced by renewable energy sources such as solar and hydropower.

“This new tariff is based on the benchmark of retail pricing of green electricity supply in neighboring countries,” the Malaysian government said in a statement.

It said that customers who now subscribe to the GET program will not be charged the Imbalance Cost Pass-Through (ICPT), a mechanism reflecting changes in the cost of electricity generation every six months. Local utility Tenaga Nasional Berhad (TNB) will now adjust the electricity bill for the electricity users involved in the program.

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The Green Electricity Tariff (GET) program went into force in January 2022 and offers 4,500 GWh of power per year. GET customers are charged the additional tariff for each kWh of renewable energy purchased. The energy is sold in 100 kWh blocks for residential customers and 1,000 kWh blocks for industrial consumers.

The Malaysian government is currently supporting distributed solar via net metering and large-scale PV through a series of tenders. At the end of 2022, the country had around 1,933 MW of installed solar generation capacity, according to the International Renewable Energy Agency (IRENA).

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