MTC GREEN INITIATIVES
FOR PURCHASE & INSTALLATION OF SOLAR PHOTOVOLTAIC SYSTEM
("SPS")
GUIDELINES
A. INTRODUCTION
The Malaysian Timber Council (MTC) expanded its assistance programme by introducing MTC’s Green Incentives programme for the purchase and installation of Solar Photovoltaic System (“SPS”) to assist the timber industry in the adoption and utilisation of renewable energy as well as to:
• Encourage the timber sector to adopt Green Technology to enhance its competitiveness.
• Reduce the monthly energy cost and shield from future electricity tariff hikes.
• Contribute to the mitigation of Greenhouse Gas Emissions. Electricity generation with photovoltaic panels is environmentally friendly.
• Reduce the dependency on fossil fuel.
B. ELIGIBILTY CRITERIA
1. The company shall be incorporated in Malaysia and based in Peninsular Malaysia, installed with wood-based manufacturing facilities and in operation for at least three (3) years.
2. The company shall be a Malaysian-owned company (with at least 51% of shareholding).
3. The company shall be a member of any one (1) of the following six (6) timber associations:
• Malaysian Wood Industries Association (MWIA);
• The Timber Exporters' Association of Malaysia (TEAM);
• The Malaysian Panel-Products Manufacturers' Association (MPMA);
• Malaysian Wood Moulding & Joinery Council (MWMJC);
• Malaysian Furniture Council (MFC); and
• Persatuan Pengusaha Kayu-kayan & Perabot Bumiputra Malaysia (PEKA)
[Association of Malaysian Bumiputera Timber & Furniture Entrepreneurs].
4. SMEs with common shareholders having different core businesses may apply, with a reimbursable amount up to RM100,000.
5. SMEs with common shareholders with similar core businesses may apply and share the eligible incentive.
6. Companies that have received other grant or subsidy for the procurement of the same equipment from other government or government-linked agencies are not eligible.
7. All applicants to be in full compliance with Occupational Safety and Health Act (OSHA) regulations. According to the OSHA Order 1997, the woodworking industry, involving activities like cutting, sawing, planing, and shaping, is required to appoint a Safety and Health Officer (SHO) for each workplace with more than 100 employees.
8. Under the Occupational Safety and Health Act 1994 (OSHA 1994):
• Section 30(1)(a) mandates a Safety and Health Committee for workplaces with 40 or more employees.
• Section 29A(1) requires an Occupational Safety and Health Coordinator (OSH Coordinator) for workplaces with 5 or more employees, unless an SHO is already mandated.
C. INCENTIVE
• SMEs and Non-SMEs: 10% of the installation and cost of SPS, limited to a maximum of RM50,000 per company/group of companies.
• Note:
1.Cumulative eligibility for Green Initiatives (APC, SPS, EF and BESS) is limited to RM50,000 per company/group of companies (one-off).
2.Participants of the MTC Timber Sustainability Programme (TSP) beginning 2025 will be provided with an additional one-off allocation of RM20,000 per company/group of companies starting in 2026.
D. PURCHASE & INSTALLATION OF SOLAR PHOTOVOLTAIC SYSTEM (SPS)
1. The purchase and installation of SPS and all related facilities shall comply with the standards determined by relevant authorities.
2. Applying Company to obtain the necessary approval from ONE of the following relevant authorities:
• Net Energy Metering Certificate from the Sustainable Energy Development Authority (SEDA) OR
• Self-consumption from Suruhanjaya Tenaga (ST) OR
• New Enhanced Dispatch Arrangement (NEDA) from Single Buyer.
3. Only new SPS purchased and installed is eligible for the incentive.
4. Both imported and locally fabricated SPS purchased are eligible for the incentive.
5. Companies are required to use local technology/service provider registered with SEDA, CIDB or ST.
E. APPLICATION
1. Register for an account at MTC IAP Portal: iap.mtc.com.my. Once the account registration is approved, the applicant will receive an email notification and instructions to log into the Portal.
2. Applying company shall complete their company profile in the online portal, with the following supporting documents (with certified true copy stamped and signed on front page only):
• Section 78 as per the Companies Act 2016 OR Form 24 as per the Companies Act 1965;
• Section 58 as per the Companies Act 2016 OR Form 49 as per the Companies Act 1965;
• Latest Form of Annual Return; and
• Latest Audited Accounts.
3. For applying company with existing account in the portal shall log in and update their company profile. The company profile can be updated at any time and should be kept up to date for MTC’s evaluation.
4. Completed Application Form shall be submitted to MTC within thirty (30) days after commissioning of SPS together with the following supporting documents (with certified true copy stamped and signed on front page only):
1) Latest 3 months Bank Statement;
2) Quotation of SPS;
3) Purchase Order/Installation Contract;
4) Delivery Order;
5) Technical specifications, and drawing/brochure with photographs of the SPS;
6) Solar PV System Schematic Diagram certified by Service Provider registered with SEDA, CIDB or ST;
7) Layout of system installed certified by SEDA, CIDB or ST holder;
8) Certificate/License issued by SEDA or ST to Applying Company;
9) Registration Certificate issued by SEDA, CIDB or ST to service provider;
10) Electricity bills for 6 months prior to the project;
11) Net Energy Metering Commencement Date (NEMCD) Certificate from SEDA or Public/Private License from ST; and
12) Documents evidencing compliance with the OSHA.
5. An acknowledgement of Application Letter with a Reimbursement Checklist will be issued by MTC to successful Applicant that has submitted complete supporting documents.
F. REIMBURSEMENT
1. Submission for reimbursement (with full supporting documents) must reach MTC within three (3) months from the date of the Acknowledgment of Application Letter from MTC.
2. Submission of documents (with certified true copies stamped and signed on the front page only) required include:
1) Supplier’s Invoice
2) Proof of payment to the supplier
3) Proof of document to show that the SPS has been installed and used in the factory (i.e. SEDA Testing and Commissioning Checklist, photos of installed SPS)
4) Latest electricity bill after commencement of SPS
5) Company Environmental, Social, and Governance (ESG) Disclosure Statement for SPS
3. Upon submission of complete reimbursement document, MTC will carry out a due diligence audit (DDA) either on site or remotely to assess and examine the SPS installed (if required).
4. Late submission for reimbursement later than three (3) months from the date of the Acknowledgement of Approval Letter from MTC will not be considered by MTC.
5. Approval for reimbursement of any Incentives under this Programme is at the sole discretion of MTC subject to any application for reimbursement supported by credible and non-misleading requisite documentation as stipulated herein.
6. The financial incentive provided is on a first-come, first-served basis, until the budget allocation is completely utilised.
G. NON-COMPLIANCE (Penalty)
In the event of non-compliance with any of the provisions contained herein, the company must refund in full the disbursement amounts to MTC within fourteen (14) calendar days from the receipt of a written notice from MTC. MTC reserves its rights to initiate legal action to recover the disbursed amount and/or any other actions deemed suitable. All costs incurred in pursuing such actions shall be solely borne by the company.
MTC also reserves the sole right to blacklist any company found to be non-compliant with any of the provisions contained herein.
H. AMENDMENT
MTC reserves the right to amend the Guidelines of this Programme at any time without any prior notice. Interested companies is highly encouraged to refer the IAP Portal for the latest version of the Guidelines from time to time.
For further enquiries and information, please contact:
1. Ms. Ong Lay Lee (Tel: 03-9286 9962; Email: ong@mtc.com.my)
2. Ms. Noor Ateeqah (Tel: 03-9286 9967; Email: noorateeqah@mtc.com.my)