The applicable FiT rate will depend on the following factors:
1. The type of renewable resource used
Biomass (inclusive of municipal solid waste), biogas (inclusive of landfill/sewage), small hydro and solar photovoltaic. The rationale for selecting these renewable resources are based on proven technologies and technical potential under the local environment.
2. The installed capacitiy of the renewable energy (RE) installation
The maximum installed capacity of all eligible RE installations is 30MW unless special approval from the Minister is obtained. The FiT rate is lower as installed capacities increase, due to cost optimisation from economies of scale.
3. Whether the RE installation will meet any criteria entitling it to additional bonus FiT rates
Additional FiT rates will be given for those RE installations that meet the criteria entitling it to additional bonus FiT rates.
4. The date the RE installation is completed, connected to the grid and ready to produce RE for commercial sale i.e. the FiT Commencement Date.
The FiT rates for all renewable resources (except for small hydropower) will decrease with time according to their respective annual degression rates. The degression occurs at the start of each new calendar year from 2013 onwards. The degressed or reduced FiT rate for each RE installation is determined by the applicable rate at the time of its FiT Commencement Date. Thus RE installations that are completed in later years will have a lower FiT rate. However, the rate will not be reduced any further once the FiT Commencement Date has been achieved. The basis of the degression rate is that the costs of the RE technologies just like any other technologies are expected to drop as the technologies mature. The degression rate therefore reflects the maturity and the existing cost reduction potential of all renewable resources (except for small hydropower).