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.
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 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 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.
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.
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
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
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’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
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