MTC GREEN INITIATIVES

FOR PURCHASE & INSTALLATION OF SOLAR PHOTOVOLTAIC SYSTEM (“SPS”) 2021 

GUIDELINES

A)     Introduction

The Malaysian Timber Council (MTC) is expanding 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)   Incentive

Partial reimbursement of the purchase and installation of the Solar Photovoltaic System (SPS).

C)   Reimbursement Rate

• 10% of the purchase and installation of SPS, limited to a maximum of RM50,000 per company/group of companies

D)   Company Eligibility

• Company must be incorporated in Malaysia and based in Peninsular Malaysia.
• Company must be a Malaysian-owned company (with at least 51% of the shareholding).
• Companies with common shareholder are eligible to apply for one (1) company only.
• Company must be in operation for at least three (3) years prior to application.
• Company must be installed with wood-based manufacturing facilities and involved in sawmilling or production of value-added timber products.
• Companies that have received other grant or subsidy for the purchase and installation of SPS from other government or government-linked agencies are not eligible for this incentive.
• A member of any one (1) of the six (6) timber associations:

                          i.          Malaysian Wood Industries Association (MWIA)

                         ii.          The Timber Exporters' Association of Malaysia (TEAM)

                        iii.          The Malaysian Panel-Products Manufacturers' Association (MPMA)

                        iv.          Malaysian Wood Moulding & Joinery Council (MWMJC)

                         v.          Malaysian Furniture Council (MFC)

                        vi.          Persatuan Pengusaha Kayu-kayan dan Perabot Bumiputra Malaysia (PEKA)

E)    Purchase & Installation of Solar Photovoltaic System (SPS)

• The purchase and installation of SPS and all related facilities shall comply with the standards determined by relevant authorities.
• 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.
• Only new SPS purchased and installed is eligible for the incentive.
• Both imported and locally fabricated SPS purchased are eligible for the incentive.
• Companies are required to use local technology/service provider registered with SEDA, CIDB and ST.
• A consultant may be engaged by MTC to provide an assessment on the suitability of the SPS and whether it was purchased and installed at a fair and reasonable price by the Applying Company.

F)    Application Procedure

• Completed Application Form shall be submitted to MTC at least thirty (30) days before the purchase and installation of SPS together with the following supporting documents (with certified true copy stamped on front page only):
  • Latest Form of Section 78 and Section 58 as per Companies Act 2016 or Form 24 and 49 as per the Companies Act 1965
  • Latest Annual Return
  • Latest 3 years Audited Accounts
  • Latest 3 months Bank Statement
  • Purchase and Installation Contract, technical specifications, and drawing/brochure with photographs of the SPS
  • Solar PV System Schematic Diagram certified by Service Provider registered with SEDA, CIDB and ST.
  • Layout of system installed certified by SEDA, CIDB and ST holder.
  • Quotation/Purchase Order of SPS.
  • Certificate/License issued by SEDA or ST
  • Electricity bills for 6 months prior to the project
• A Conditional Approval Letter with a Reimbursement Checklist will be issued by MTC to eligible Applicant who has submitted complete supporting documents.

G)   Reimbursement Procedure

• Submission for reimbursement (with full supporting documents) must reach MTC within three (3) months from the date of Net Energy Metering Commencement Date (NEMCD) Certificate from SEDA or Public/Private License from Suruhanjaya Tenaga (ST).
• Submission of documents (with certified true copies stamped on the front page only) required include:
  • Supplier’s Invoice and Delivery Order for the SPS.
  • Net Energy Metering Commencement Date (NEMCD) Certificate from SEDA or Public/Private License from ST.
  • Proof of document to indicate that the entire cost of the SPS installed has been paid and owned by the Applying Company.
  • Proof of document to show that the SPS has been installed and used in the factory (i.e. SEDA Testing And Commissioning Checklist).
• Late submission for reimbursement later than three (3) months from the date of Net Energy Metering Commencement Date (NEMCD) Certificate from SEDA or Public/Private License from Suruhanjaya Tenaga(ST) will not be considered by MTC.
• Approval for reimbursement is at the sole discretion of MTC.
• The financial incentive provided is on a first-come, first-served basis, until the budget allocation is completely utilised.

H)   Non-Compliance (Penalty)

• In the event of non-compliance to the guidelines, the company must undertake to refund in full the disbursement amount to MTC.

For further enquiries and information, please contact:

1. Ms Wong Mei Kuan, ext. 605, email: mkwong@mtc.com.my