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FAQs on Feed-in Tariff (FiT) Scheme

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FAQs on Feed-in Tariff (FiT) Scheme

Feed-in Tariff Scheme

FAQs

For details, please refer to the Terms and Conditions of Feed-in Tariff ("FiT") Scheme attached in the FiT Scheme Application Form.

What is FiT Scheme?

Under the FiT Scheme, we will purchase all the units of electricity generated by customers' renewable energy power systems (REPS) and fed into the power grid at FiT rates higher than normal electricity tariff rates.

What are the FiT rates?

The FiT rates effective from 1 January 2019 are as follows:

1. HK$5 per unit for REPS capacity at 10 kW or below;

2. HK$4 per unit for REPS capacity above 10 kW but not exceeding 200 kW; and

3. HK$3 per unit for REPS capacity above 200 kW but not exceeding 1,000 kW.

Arrangement for REPS with generation capacity exceeding 1,000 kW will be considered on a case-by-case basis.

The rates will be subject to an annual review between HK Electric and the Government.

Who are eligible to applying for participation in the FiT Scheme?

A registered customer of HK Electric, who installed or plans to install a solar photovoltaic system and/or wind power system within the area covered by the service address of the respective electricity account, is eligible to apply for participation in the FiT Scheme.

How can I get the FiT payment?

The FiT payment will be reflected as a credit to your electricity account to offset your electricity charge on the electricity consumption and demand (if applicable) at the service address. If there is a credit balance of HK$150 or over after netting off the electricity charge by the FiT payment, you may choose to have the credit balance:

1. retained and carried forward in the your electricity account for offsetting electricity charge on the future electricity bill(s);

2. fully paid by cheque made payable to you; or

3. fully paid via bank transfer made payable to the bank account under your name and specified by you.

Will the FiT rates be adjusted in accordance with the inflation or electricity tariff rates?

The FiT rates will be fixed when your REPS participates in the FiT Scheme throughout the project life of the REPS or until 31 December 2033, whichever is earlier.

How long will I receive the FiT payment if I have successfully participated in the FiT Scheme?

You will receive FiT payment starting from the next billing after the date when you participate in the FiT Scheme until the expiry date of the entire project life of the REPS or 31 December 2033, whichever is earlier.

Which RE technologies are eligible for participation in FiT Scheme?

Solar photovoltaic systems and wind power systems are eligible.

If my REPS is equipped with a battery storage facility, can I be eligible to apply for participation in FiT Scheme?

A REPS is not eligible if it is connected with any non-renewable energy source or energy storage facility, which may affect the reading of the respective meter(s) (i.e. RE Meter(s)) for measuring electricity generated from the REPS.

Can I still be entitled to claim my carbon reduction from the generated green electricity which has been sold to HK Electric under the FiT Scheme?

No, all the electricity generated from the REPS and the associated rights and benefits, including the rights to claim all greenhouse gases and other pollutant emissions reduction benefits (the Environmental Attributes) should be sold, transferred and surrendered to HK Electric under the FiT Agreement entered between you and HK Electric.

You shall not, and shall procure that your affiliates do not, claim any Environmental Attributes that may arise from the installation and operation of the REPS or the electricity generated by the REPS.

If I need to claim the Environmental Attributes associated with my generated green electricity, can I still participate in the FiT Scheme?

Yes, provided that you buy Renewable Energy Certificates (RECs), which are issued by HK Electric, covering the amount of electricity generated from your REPS. Before you enter into a FiT agreement with us, you will be provided a one-time offer to purchase RECs matching the full amount of electricity generated from your REPS. For the prevailing price and details of REC, please visit our website (www.hkelectric.com/REC-en).

Do I need to pay any charge for applying for participation in the FiT Scheme?

The application for the FiT Scheme is free of charge.

Do I need to pay any connection fee for connecting my REPS to the grid?

In general, you do not need to pay any grid connection fee, except in the case that the connection of the REPS to the grid involves alteration, extension, reinforcement or upgrade of the grid, under which a connection fee (as determined by us on a case-by-case basis) will be charged.

How can I partcipate in the FiT Scheme?

You simply need to go through the following 5 steps for participating in the FiT Scheme:

1. Submit a duly completed application form, identity verification document (e.g. a copy of HKID card) and other technical information for our assessment;

2. Install the REPS after obtaining our written consent;

3. Perform system tests, submit testing results and other necessary information before arranging with us to carry out site inspection and witness tests;

4. We will install smart meter (i.e. RE Meter) and connect your REPS to power grid upon satisfactory site inspection; and

5. You will then receive FiT payment based on metered system output.

You are advised to engage qualified service providers to ensure that the design, installation, operation and maintenance of REPS comply with all applicable statutory, safety and technical requirements from time to time.

For the lists of RE equipment suppliers and installation contractors, please refer to EMSD's website at re.emsd.gov.hk or call 6395 2930.

How can I submit my FiT application?

You can return the application form and other required documents to us via online application (www.hkelectric.com/FIT-en or HK Electric Low Carbon App), email to RE@hkelectric.com or by post to Head of Customer Business Development, Customer Services Division, 4/F, Hongkong Electric Centre, 44 Kennedy Road, Hong Kong.

What should I pay attention to before submitting my FiT application?

You are advised to pay attention to the following items before submitting an application:

1. You must be a registered customer who holds an electricity account of HK Electric and the REPS is or will be located within the service address of your electricity account.

2.The following documents are required to be submitted together with the completed FiT Scheme application form. Application with incomplete documents will not be processed.

i. A copy of HKID Card or Passport (for a person), a copy of Business Registration Certificate / Certificate of Incorporation (for a company) or a copy of other registration / incorporation document (for other entities);

ii. Technical drawings illustrating the physical locations of the REPS and other major electrical equipment including but not limited to inverters, isolation transformers, RE meters, isolating switches, and main switches;

iii. Single-line electrical diagrams of the distribution system showing details of the REPS, the grid connection point, the associated Electricity Account Meter (and its number), the overall electrical connection of the premises and HK Electric’s supply point (and its number); and

iv. Equipment supplier information and technical specifications of the REPS major components including but not limited to solar photovoltaic panels, inverters, wind turbines and isolation transformers.

3.The application process will be terminated automatically if we have not issued the consent (i.e. the Consent Letter) within three (3) months from the date of our receipt of the application form and all the required documents.

4.The application process will also be terminated automatically if the REPS cannot be connected to our grid (i.e. issuing of a Completion Letter) within eighteen (18) months from the date of the our consent

5. You are advised to engage qualified service providers to ensure that the design, installation, operation and maintenance of the REPS comply with all applicable statutory, safety and technical requirements from time to time. For the lists of RE equipment suppliers and installation contractors, please refer to EMSD's website at re.emsd.gov.hk or call 6395 2930.

When will HK Electric issue the Consent Letter?

For application which meets with all applicable technical and safety requirements, we shall generally issue the Consent Letter to you within fourteen (14) calendar days from the date of your last submission of information.

Can I assume that the approval of grid connection and/or participation in the FiT Scheme can be regarded as a compliance with statutory technical and safety requirements?

Our consent for the connection of the REPS to the grid and/or satisfaction of any associated testing or inspection shall not amount to any representation by HK Electric that the REPS complies with any or all such requirements.

You are fully responsible for ensuring that the design, installation, operation and maintenance of the REPS at all times comply with all applicable laws, regulations, codes of practice, guidelines, safety and technical requirements from time to time.

You are also responsible for obtaining and maintaining all relevant licenses, permits, registrations and/or approvals from the Government authorities and other third parties which are necessary for the installation and operation of the REPS.

Will HK Electric provide a list of recommended contractor for RE installation?

We do not maintain a list of recommended supplier or contractor for RE installation. For the lists of RE equipment suppliers and installation contractors, please refer to EMSD's website at re.emsd.gov.hk or call 6395 2930.

Apart from installing smart meters for my REPS, are there any other electrical modification works required?

For the participation in the FiT Scheme, we will replace the existing electricity account meter(s) at your service address, which is(are) used for determining the amount of electricity consumed from the grid at the service address. You shall allow and provide such provisions as may be required by us to facilitate the metering replacement work. The Completion Letter will not be issued until the replacement work is completed.

If several REPSs are commissioned at the same time at the same building (at the same service address under my electricity account), will they be treated as separate REPS?

No, we will treat all the REPSs as one system for this case. There will only be one single FiT rate for all the REPSs, which is determined based on the aggregate generation capacity of all the REPS. Whether a REPS is considered as being installed on the same or different premises and is therefore treated as one REPS or separate REPS will be solely determined by us.

If the REPSs are installed at several premises (e.g. multi-residential blocks) of a complex/campus/estate (e.g. a residential estate), will the REPS installed on each premises be treated as a separate REPS?

Yes, each of the REPS installed at different premises in a building complex/campus/estate will be treated as separate systems for this case. A separate applicable FiT rate will be determined for each REPS. Whether a REPS is considered as being installed on the same or different premises and is therefore treated as one REPS or separate REPS will be solely determined by us.

If I plan to add a new REPS to my existing REPS which has been participated in the FiT Scheme, how is the FiT rate for this new REPS be determined?

The FiT rate for the new REPS will be determined based on the aggregate generation capacity of the new REPS and the existing REPS at the same service address while the FiT rate for the existing REPS will remain unchanged. Please refer to the following examples illustrating the determination FiT rates under different scenarios:

Example

REPS installed at the same service address
(each REPS will be installed with a HK Electric's smart meter, i.e. RE Meter)

FiT rate (HK$ per unit) to be applied to REPS under each RE Meter

Explanation

1

5 kW in early 2019 (RE Meter 1)

+ 3 kW in mid-2019 (RE Meter 2)

+ 3 kW in end 2019 (RE Meter 3)

REPS output measured by RE Meter 1:$5

REPS output measured by RE Meter 2: $5

REPS output measured by RE Meter 3: $4

Aggregate capacity is 5 kW ≤ 10 kW

Aggregate capacity is 8 kW (= 5 + 3 kW) ≤ 10 kW

Aggregate capacity is 11 kW (= 5 + 3 + 3 kW) > 10 kW but ≤ 200 kW

2

5 kW in early 2019 (RE Meter 1)

+ 10 kW in end 2019 (RE Meter 2)

REPS output measured by RE Meter 1: $5

REPS output measured by RE Meter 2: $4

Aggregate capacity is 5 kW ≤ 10 kW

Aggregate capacity is 15 kW (= 5 + 10 kW) > 10 kW but ≤ 200 kW

If the FiT rates are changed during the project period, will my REPS under construction be affected concurrently?

A provisional FiT rate, which is the applicable prevailing FiT rate published on our website on the date of receipt of your complete application, will be stated in our Consent Letter. If you commission the REPS and we install the smart meter(s) (i.e. the RE Meter(s)) for the REPS within four (4) months (for the REPS of capacity of 10 kW or below) twelve (12) months (for the REPS of capacity of 1,000 kW or below but larger than 10 kW), the applicable FiT rate under the FiT Agreement will be the provisional FiT rate as shown in our Consent Letter; otherwise, the applicable FiT rate will be the prevailing rate published on HK Electric's website as at the completion date of installation of RE Meter(s).

Should I need to notify HK Electric whenever I make change to my REPS?

In general, you should not make any change to the capacity or configuration of the REPS without prior written notice to HK Electric. In case we consider the change/alteration is substantial, you may be required to terminate the prevailing FiT Agreement and submit a new application for covering the REPS to be changed/altered.

I am the property owner, can I lease my rooftop to a third party to own and operate the REPS while I earn the FiT payment?

We will not involve in any commercial arrangement between a REPS operator and the property owner. Only a registered customer, who holds an electricity account of HK Electric and the the REPS is or will be located within the area covered by the applicant's electricity account, is eligible to apply for participation in the FiT Scheme.

I have moved out from a service address where a FiT-participated REPS is located, can I transfer the FiT Agreement to my successor?

The FiT Agreement for each REPS located in your service address is associated with your electricity account. Accordingly, the FiT Agreement can only be transferred to a third party with the transfer of the electricity account to that party concurrently. Please refer to the Terms and Conditions of FiT Scheme attached in the FiT Scheme Application Form for detailed requirements for the transfer of FiT Agreement.

How long will HK Electric take if all documents required are submitted by both the transferor and the transferee for a transfer of FiT Agreement?

Upon satisfaction of the submitted documents, we will generally arrange the transfer of FiT Agreement and the transfer of the electricity account to the transferee within fourteen (14) calendar days from the date of the receipt of the last submission of our required documents.

Can I terminate the FiT Agreement?

You can terminate the FiT Agreement at any time without giving reasons by giving us sixty (60) days' prior written notice.

Enquiry Hotline & Email

Hotline: 2510 2701

Enquiry email: RE@hkelectric.com

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