- CLP and HKE utilities in Hong Kong will offer a feed-in-tariff (FiT) in the range of HK$3 to HK$5 ($0.38 to $0.64) per kWh for distributed solar PV and wind power systems
- These rates will apply to such systems up to 1 MW capacity; larger systems will be considered on case-to-case basis
- Systems installed before the commencement of the Scheme of Control Agreement (SCA) will also be eligible to be considered for the FiTs
- The FiT will be paid over 15 years until the end of 2033
- CLP and HKE may also issue renewable energy certificates (REC) to contribute towards the cost of purchasing local renewable energy
The Government of Hong Kong will soon have a feed-in tariff (FiT) scheme for distributed renewable energy systems that will remain in effect through 2033. It will offer very attractive FiTs ranging between HK$3 and HK$5 ($0.38 to $0.64) per kWh for renewable energy systems up to 1 MW. The target is to ensure a system payback period of around 10 years.
Consumers who plan to invest in a solar PV and/or wind power system connected to the grid of electric utilities CLP Power Hong Kong Limited (CLP) and The Hong Kong Electric Co., Limited (HKE) will be eligible for the above FiT rates. Systems exceeding the 1 MW limit will be considered on case-by-case basis.
In the event of the system being supported by energy storage systems, the FiT will be payable on the units of electricity actually generated, irrespective of the fact whether the renewable energy generated is exported to the grid or not.
Hong Kong’s Secretary for Environment KS Wong has confirmed that the administration will provide incentives to the two power companies with the aim to support their renewable energy initiatives through the new Scheme of Control Agreement (SCA), according to government controlled news portal News.gov.hk. Once in place, this will allow both CLP and HKE to buy FiT based solar power.
For CLP, the regulation will come into force in October 2018; for HKE, it will be applicable from January 2019. In August 2018, HKE will provide details about the scheme. The FiT scheme will be open to any non-government body or individual in Hong Kong.
The FiT will be accessible even to investors who have already installed renewable energy systems. The FiT will be paid over 15 years until the end of 2033. Post this period, electricity generated will belong to the system owner. New rates will be reviewed and implemented from time to time for all new installations.
The two utilities are considering to issue renewable energy certificates (RECs) to residential and commercial customers. The revenue generated by issuing RECs would contribute towards the cost of purchasing local renewable energy, which would lead to overall cost reduction.