The Budget 2011 has extended incentives to grant exemptions of import duty and/or sales tax as appropriate, to Registered Third Party Distributors (TPDs) as well as manufacturers of the relevant products as follows:

• Import duty and sales tax exemption on solar photovoltaic system equipment for the usage by third parties be given to importers including photovoltaic service providers approved by the Energy Commission; and
• Sales tax exemption on the purchase of solar heating system equipment from local manufacturers.

Applications must be submitted to the Energy Commission with a copy to SEDA Malaysia. Such applications can be made on MIDA Form PC Services (10.3.2009) for this purpose. The application period for tax incentives for companies generating energy from renewable sources or providing energy conservation is extended to 31 December 2012.

For further details on the incentives and procedures involved, please download the Handbook for Incentives for RE & EE in Malaysia.