The Hong Kong Government signed a new Scheme of Control Agreement with two Hong Kong power companies in April 2017. The new agreements will take effect in October 2018 and January 2019 respectively. The new agreement introduces new provisions to promote the development of renewable energy, including on-grid tariffs and renewable energy certificates.
Under the scheme, those who install solar photovoltaic systems on private premises will be able to supply the renewable energy generated to electricity companies at a rate up to five times higher than normal electricity charges.
Feed-in tariffs can encourage the industry to consider investing in renewable energy because the purchased power can be sold to power companies at a higher rate than the normal tariff, covering the cost of investment in renewable energy systems and generation under the new provisions.