Application Procedures for Grid Connection and FiT
While the requirements applicable to a particular renewable energy (RE) system would depend on individual circumstances, the following gives an overview of the key application procedures involved in setting up a RE system and applying for Feed-in Tariff (FiT) in general.
- RE system connected to grid is in general required to be This link will open in a new windowregistered as a registered generating facility under the Electricity Ordinance (EO) (Cap. 406).
- Electrical work on RE system should be carried out by This link will open in a new windowregistered electrical contractor and registered electrical worker in compliance with the EO.
- Installation of RE systems, subject to relevant requirements, may be pursued under This link will open in a new windowMinor Works Control System by This link will open in a new windoweligible persons.
- If the building works involved are not exempted building works or minor works items, the relevant owner or tenant should This link will open in a new windowappoint an authorized person to submit building plans to the Buildings Department(BD) in accordance with the Buildings Ordinance (Cap. 123) and proceed with the works after obtaining approval for and consent to the commencement of works.
- Installation of solar energy generation systems may be considered as This link will open in a new windowGreen and Amenity Facilities in This link will open in a new windowNew Territories Exempted Houses (subject to conditions and requirements).
- For small-scale of solar energy generation systems installation, e.g. minor works, it is recommended to provide a dry powder type fire extinguisher.
- For installation requiring submission of general building plans, requirements for fire service installations and equipment will be formulated on a case-by-case basis by the Fire Services Department.
- Installation of solar energy generation systems on building refuge floor/roof or designated means of escape is not permitted.
- For Installation of solar energy generation systems on other building roofs, space for temporary shelter from fire / emergencies, and access to all means of escape / exits should be maintained.
- Installation of solar energy generation system for generating electricity for a permitted use is regarded as an ancillary use and no planning permission from the Town Planning Board (the Board) is required.
- Installation of stand-alone solar energy generation system on vacant land for the FiT Scheme is regarded as “Public Utility Installation” and planning permission from the Board may be required subject to the provisions of the statutory plan concerned. The Board has promulgated a set of This link will open in a new windowassessment criteria for considering planning applications for solar energy generation system made under Section 16 of the Town Planning Ordinance (Cap. 131).
- Applicable requirements will also depend on the provisions of the land lease in respect of the site.
Individuals (not in the course of any other business) installing RE systems at their residential premises are exempted from the payment of profits tax in respect of the FiT payments received through participation in the FiT Scheme, and also exempt them from the requirement to apply for business registration.
If you are not sure about the requirements applicable to installation of RE systems at your premises, you are encouraged to seek advice from a professional.
In order to further encourage the development of distributed RE , individuals (not in the course of any other business) installing RE systems at their residential premises are exempted from the payment of profits tax in respect of the FiT payments received through participation in the FiT Scheme, and also exempt them from the requirement to apply for business registration. (Details can be referred to press release issued by the Government dated 1 March 2020: This link will open in a new windowhttps://www.info.gov.hk/gia/general/202003/01/P2020022800340.htm?fontSize=1)
At the same time, as mentioned in the 2018-19 Budget, the Government has further enhanced tax concessions for capital expenditure incurred by enterprises by allowing tax deduction for RE (and qualified energy efficiency (EE)) installations to be claimed in full in one year instead of five years. The shorter deduction period would also help reduce the upfront capital expenditure of businesses to procure RE and qualified EE installations.