Solar Energy Feed-in tariffs (FITs) in Asia

Solar Energy Feed-in tariffs (FITs) in Asia

In order to promote the development of solar energy sources, incentive policies have also been introduced in many Asian countries. Here we summarize the existing Feed-in tariffs (FITs) in Asian countries.

China

The National Development and Reform Commission (NDRC) in China offers a 20 year FIT that divides the nation into three resource areas, each with different payment levels. The class I resource area FIT rate of RMB 0.90/kWh (US$0.15) applies in high irradiation regions such as Qinghai, Inner Mongolia and Xinjiang. The class II resource area rate of RMB 0.95/kWh (US$0.16) covers high irradiation regions such as Beijing, Tianjin, Sichuan and Shanxi. The class III resource area rate of RMB 1.00/kWh (US$0.16) applies in high irradiation regions such as Shanghai, Guangdong and Jiangsu. In addition, there is a new FIT for distributed generation of RMB 0.42/kWh (US$0.07), which is intended to ease the strain on the electrical grid.

India

India has the Jawaharlal Nehru National Solar Mission (JNNSM), which is an auction system. See the reference article for the details on recent bids.

* Forecast only

Indonesia

Indonesia has a bidding system similar to that in India. The maximum feed-in tariff is US$0.25/kWh, or US$0.30/kWh for projects that utilize local components of 40% or more. Bidders that fulfil the minimum 40% local content requirement will have their bid adjusted downward by US$0.05/kWh during the competitive selection process, but will then be paid according to their initial bid. Foreign entities cannot take part in the bidding process as bidders must submit an Indonesian tax registration number, although they can partner with local firms to take part.

Japan

Size                                                                                             Incentive                                 Term

Non-residential                                                                       €0.156/kWh                            20 years

Residential<10 kW without control equipment                      €0.142/kWh                            20 years

Residential <10 kW with control equipment                           €0.133/kWh                            20 years

There is also a one-time payment for residential systems under 10kW. The grant is ¥48,000/kW, and the maximum amount payable is ¥479,520. To receive the grant, the modules used in the installation must have the J-PEC certification.

Malaysia

FITs for plants below 24 kW degress 8% per year and those above 24 kW degress 20% per year as of March 2013. The bonuses for local modules and inverters do not have yearly degressions.

Rooftop                                                BIPV                                                Ground-mounted                                         Term

Size               Incentive                         Size              Incentive                    Size                                Incentive

<4kW           1.0888 MYR/kWh         <4kW          1.2544 MYR/kWh    <4kW                    0.9166 MYR/kWh        21 years

4-24kW        1.0664 MYR/kWh      4-24kW      1.2320 MYR/kWh     4-24kW                   0.8942 MYR/kWh       21 years

24-72kW      0.8944 MYR/kWh     24-72kW     1.0600 MYR/kWh     24-72kW                 0.7222 MYR/kWh       21 years

72kW-1MW  0.8699 MYR/kWh   72kW-1MW  1.0355 MYR/kWh    72kW-1MW            0.6977 MYR/kWh       21 years

1-10MW       0.7194 MYR/kWh      1-10MW        0.8850 MYR/kWh   1-10MW                  0.5472 MYR/kWh       21 years

10-30MW     0.6618 MYR/kWh    10-30MW     0.8274 MYR/kWh   10-30MW                0.4896 MYR/kWh      21 years

Bonus for local modules                                                                                        0.0500MYR/kWh

Bonus for local inverters                                                                                       0.0500MYR/kWh

Mongolia

Type                                                                          Size                                               Incentive                                  Term

Transmission connected                                      Any size                                        US$0.15-0.18/kWh               10 years

Distribution connected & Ulan Bator               Any size                                         US$0.20-0.30/kWh             10 years

Philippines

There is an incentive scheme for renewable energy generation in the Philippines, however a project can only have 40% foreign equity, making the market very hard to penetrate for foreign investors.

Any size                                ₱8.69/kWh                                 20 years

South Korea

South Korea’s FIT system expired in 2011. It then implemented a Renewable Portfolio Standard (RPS) scheme, which required at least 2% of each energy company’s supply to come from renewable resources in 2012. This will be ramped up each year according to the below table. The Korea Electric Power Company (KEPCO) and its six subsidiaries look set to acquire most of their quotas from biomass and waste, as these look to be the most cost-effective in the short term. However, there is also an amount set aside specifically for solar PV planned until 2016.

RPS renewable energy requirements

2013     2014     2015      2016    2017     2018      2019      2020     2021     2022

2.5%     3.0%     3.5%     4.5%     5.0%    6.0%     7.0%       8.0%     9.0%    10.0%

PV installation capacity requirements

2013                   2014               2015                 2016

450MW            690MW          1040MW        1200MW

Taiwan

Rooftop/BIPV                                                 Ground-mounted                                                                     Term

Size                               Incentive                   Size                                              Incentive

1-10kW                        NT$8.4/kWh           Any size                                       NT$5.98/kWh*                    20 years

10-100kW                  NT$7.54/kWh                                                                                                                 20 years

100-500kW               NT$7.12/kWh                                                                                                                 20 years

500kW+                    NT$6.33/kWh                                                                                                                 20 years

* This is not a true feed-in tariff as ground-mounted systems will require bidding.

The Thai FITs have a ground-mounted quota of 800 MW by December 2014.

Ground-mounted (200 MW quota by December 2015)            Community ground-mounted (800 MW quota by December 2015)

Size Incentive Size Incentive Term

< 10 kW BHT6.85/kWh Any size BHT5.66/kWh 25 years

10 – 250 kW BHT6.40/kWh 25 years

250 kW – 1 MW BHT6.01/kWh 25 years

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