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In order to promote the growth of renewable energy sector in Malaysia, feed-in tariff (FiT) mechanism has been introduced by Malaysian government in 2011, in accordance with Renewable Energy Act 2011 and Sustainable Energy Development Authority Act 2011. The tariff was enacted to overcome the shortcomings identified in the small renewable energy power (SREP) Program from 2001 to 2010. This paper highlighted some measures adopted to rectify the shortcomings identified during SREP, and the role of Sustainable Energy Development Authority (SEDA) in achieving the above mentioned task. The paper also includes the latest progress on renewable energy projects, especially those related to solar photovoltaic system. It is predicted that solar energy will become the main source of renewable energy in Malaysia by the year 2050. [ABSTRACT FROM AUTHOR]

Abstract: This paper examines solar photovoltaic (PV) in Malaysia. First, it analyzes the current energy demand in Malaysia and discusses some of the national policies and the installations of solar PV in urban and rural areas in the country. Next, the general Feed-In Tariff (FiT) scheme is explained, indicating its potential as one of the investment options for Malaysians. Finally, the loan financing option for solar PV is presented, providing examples that have been implemented in other countries, as well as explaining the Green Technology Financing Scheme (GTFS) for companies and the proposed soft loan scheme for individual households in Malaysia. It also analyses the impact of the proposed interest rate to household consumers in Malaysia, in terms of total profit, net present value and internal rate of return. It is found that the FiT scheme could potentially help in increasing renewable energy penetration, particularly for solar PV. To provide upfront capital for solar PV installation, it is shown that the GTFS is a good financial source for companies while for individual home owners, a soft loan facility from banking institutions is a feasible source if the interest rate is 5% or less. [Copyright &y& Elsevier]