Questions over new power tariff

The Star

8 hours ago

PETALING JAYA: Home solar adopters have expressed concern that the new power tariff structure, taking effect tomorrow, may impact the value of their energy contributions to the grid and affect their returns in the long term.
In the case of general manager H. Ram, he said he had signed up with Tenaga Nasional (TNB) early this year for a 10-year net energy metering (NEM) contract, in which the utility company would buy back surplus electricity the home solar system produces by offsetting charges from the actual monthly usage of electricity.
He said the contract should be honoured, adding that any changes that deviate from the terms would be unfair to those who had supported the national agenda of transitioning to sustainable energy.
Ram said his electricity bill, which used to average about RM450 monthly, has dropped to just about RM10 after switching to solar power under the NEM contract.
As such, he is of the view that households which switch to solar power would still benefit.
'When you tabulate the savings, including the RM4,000 cash rebate given to adopters, it is still worthwhile and attractive,' he said.
'I do not see any major setbacks in adopting it.'
(Under a government incentive programme aimed at encouraging installations of solar photovoltaic systems among residential users, a cash rebate of up to RM4,000 is given to those who submit their NEM application and successfully commission their solar PV system installations with TNB.)
Ram, 52, said he hoped TNB would clear the air on the new tariffs for solar power users.
'In my opinion, solar power is the way forward to complement sustainable power generation for households,' he said.
As such, he hoped that the new tariffs would not deviate from the terms of the NEM contract.
Another solar panel adopter, retiree Daniel Chew, said he found the calculations and formula given by TNB on the new rates rather confusing.
'I am overwhelmed by these formulas. I hope it can be explained in plain language.
'We can only wait until the end of July to know how the new tariffs will affect solar power users,' said Chew, 73.
'Any increase will affect people, especially folks like me who are retired and rely on what little savings we have.'
On Saturday, The Star published a letter from a reader, Kok Siong Lee, who pointed out that the changes in the power tariff structure would impact home solar users.
He said the new rates could cause them to lose up to 50% in revenue from the power their solar panels generate and feed back to the grid.
Instead of getting a return of investment (ROI) within five years, he said the amount of time for ROI could go up to between 10 and 12 years.
'Since installing a home solar system will no longer be financially feasible and sensible, public adoption will grind to a halt, and so will the national agenda to transition to green renewable energy and becoming a nation with sustainable net-zero emission,' Kok said.