Malaysia has chosen the FiT System because the feed-in tariffs introduced in other countries have proven to be effective and efficient in developing new markets for renewable energy. The concept of feed-in tariffs is simple and has low administrative costs making it a highly effective tool for boosting renewable energy.
As an example, Germany is the first country which successfully implemented feed-in tariffs. This was done through their Renewable Energy Sources Act 2000 and it is notable that in the first ten years of its implementation of feed-in tariffs, Germany has been able to increase their renewable energy capacity substantially making them the world leader in renewable energy with a renewable energy contribution of 16.1% to their total electricity consumption in 2009. This also created 300,000 green jobs. Furthermore, Germany has not only developed the most dynamic solar PV electricity market but also a flourishing and robust PV industry as a result of feed-in tariffs and this is truly a remarkable feat for a country that is not one of the sunniest in the world.
Many other countries have also implemented feed-in tariffs. As of 2009, feed-in tariff policies have been enacted in many countries including including Australia, Brazil, China, Greece, Iran, Israel, South Korea, South Africa, Taiwan, most countries in Europe and in some states in the United States of America. It is also gaining momentum in other countries such as India and Mongolia. In South East Asia, Thailand and Philippines have also implemented a feed-in tariff mechanism.
Sourced from SEDA Malaysia