Feed-in Tariff

The Feed-in Tariff (FiT) Scheme is an important new initiative to promote the development of renewable energy (RE) under the current Scheme of Control Agreements (SCAs), which were signed between the Government and the respective two power companies in April 2017.  Under the scheme, people who install solar or wind energy generation systems at their premises can sell the RE they generate to the power companies at a rate higher than the normal electricity tariff rate.

The Significance of FiT – Wider Adoption of RE to Combat Climate Change

Increasing the use of RE is one of the important means to achieve carbon neutrality before 2050.  As set out in the Hong Kong’s Climate Action Plan 2050, the Government will strive to increase the share of RE in the fuel mix for electricity generation from less than 1% at present to 7.5% to 10% by 2035, and the share of zero-carbon energy in the fuel mix to about 60% to 70% before 2035.  Given Hong Kong’s natural constraints and geographical limitations, we need the community’s concerted efforts to develop distributed RE to exploit our RE potential.

FiT will help encourage the private sector to consider investing in RE as the power generated could be sold to the power companies at a rate higher than the normal electricity tariff rate to help recover the costs of investment in the RE systems and generation.

How it works – the FiT Mechanism

The key features of the FiT Scheme are:

1. FiT will be offered to solar and wind energy generation systems;
2. Any non-governmental bodies or individuals, who plan to install distributed RE systems at their premises in the respective power company’s supply area with a generating capacity of up to 1 megawatt (MW) are eligible for prescribed FiT rates as long as they have been connected to the relevant power company’s grid;
3. Distributed RE projects built prior to the commencement of the FiT Scheme may also participate;
4. Gross FiT will be adopted whereby FiT will be paid for all units of electricity generated by the RE systems. Any units of electricity used at the premises will be charged by the power companies at the prevailing tariff rates;
5. FiT will be offered throughout the project life of the RE systems until end 2033. Electricity generated after 2033 will belong to the RE system owner;
6. To enable RE system owners to recover the cost of the RE system as well as installation, operation and maintenance costs in around 10 years (depending on, inter alia, actual installation costs, size of the systems, actual output, etc.), the prevailing FiT rates with effect from 27 April 2022 are –
   (a) $4 for ≤10kW;
   (b) $3 for >10kW to ≤200kW; and
   (c) $2.5 for >200kW to ≤1MW;
7. The same FiT rate, as applied to the RE system upon joining the FiT scheme, will be adopted for the entire lifetime of a given project or until end 2033, whichever is earlier; and
8. The FiT rates will be reviewed and published annually.

How to apply

While the requirements applicable to a particular RE system would depend on individual circumstances, the key procedures would involve -

• Application for grid connection and FiT from the power companies;
• Requirements in relation to electricity safety;
• Requirements in relation to building safety;
• Requirements/advices in relation to fire safety;
• Requirements in relation to land and planning matters; and
• Requirements in relation to business registration.

Please refer to the flowchart on EMSD’s HK RE Net for further details.

More information on FiT

For more information on FiT, please visit the FiT webpage on EMSD’s HK RE Net via the following link or call the EMSD’s hotline (6395 2930):

Further information may also be obtained from the power companies -

CLP Power Hong Kong Limited
Tel.: 2678 0322
E-mail: csd@clp.com.hk
Website: https://www.clp.com.hk

The Hongkong Electric Co., Limited
Tel.: 2510 2701
E-mail: RE@hkelectric.com
Website: https://www.hkelectric.com