Supply Agreement For Renewable Energy (Share) Malaysia

SARE is a tripartite agreement between the investor, Tenaga Nasional Berhad (TNBX as a billing agent) and The Offtaker primarily for invoice and revenue management ("Service"). The agreement generally sets the duration of the contract, the price of the investor`s purchase of solar energy ("AAE tariff"), as well as the alliances and obligations of each party. The SARE mechanism was supported by the Malaysian Energy Commission and the Energy Sustainable Development Authority (SEDA). According to Energy, Science, Technology, Environment and Climate Change (MESTECC) Minister YB Yeo Bee Yin, SARE allows consumers to take advantage of the solar energy produced by the sun-permeable solar installation without having to pay for the system. It takes 4 to 6 months for the SARE agreement to be signed for the system to be in place, depending on the size of the project. During this period, the project of process and internal details, request for administration and authorization, purchase of photovoltaic panels and inverters, mobilization and installation. After the installation of PV, GSPARX is coordinated with the TNB network for the installation of meters. Once the installation is complete, the TNB count begins to commission the photovoltaic installation according to the billing cycle until the end of the contract. The government intends to make sustainable, reliable and affordable solar energy available to Malaysians through new strategies from January 1, 2019, such as the New Net Energy Metering (NEM) Scheme and Supply Agreement for Renewable Energy (SARE), says Yeo Bee Yin, Minister of Energy, Science, Technology, Environment and Climate. In accordance with the SARE agreement, customers may not receive preliminary costs for installing SOLAIRE photovoltaic modules, immediate electricity savings and maintenance work, including monitoring and repair during the term of the contract. This directive allows users to benefit from zero pre-cost for the installation of photovoltaic (PV) panels and the payment of the monthly solar energy rental or use fee can be made to the participating solar company through TNB invoices.



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