PUTRAJAYA, Aug 1 (Bernama) -- Bank Muamalat Malaysia Bhd Thursday launched the "Smart Green Mortgage for Solar Photovoltaic Feed-in Tariff Plan", offering financing services to its customers to purchase and install solar systems in their house. Its Deputy Chief Executive Officer Musa Abdul Malek said the plan will be the first Islamic financing package which is fully Shariah compliant, offered to the market. "Bank Muamalat is assisting the government to develop green technology via introducing this innovative service as it will help boost investment and awareness on green technology in Malaysia," he told reporters at the launch of the Smart Green Mortgage for Solar Photovoltaic Feed-in Tariff Plan by Deputy Minister of Energy, Green Technology and Water, Datuk Mahdzir Khalid. Also present was Seda Malaysia chairman Tan Sri Dr Fong Chan Onn. Musa said the plan was in line with the implementation of the Feed-in Tariff (FiT) mechanism administered by Seda Malaysia which enables Malaysia to generate electricity from renewable resources while earning a fixed income for up to 21 years by selling electricity to Tenaga Nasional Bhd (TNB) and to be channeled to the grid.
"This plan offers a special deal via refinancing of customer's existing home financing facilities with Bank Muamalat and by the easy moving cost feature with the legal and valuation fees absorbed by Bank Muamalat. "It also offers a limited period of special financing package to reduce financing cost, resulting in affordable monthly installments for customers," he said. Musa said the product was expected to give Bank Muamalat's customers a good return on investment up to 16 percent annually via estimated average RM580 revenue or income on the solar photovoltaic system, depending on installation type and location. The income will be generated monthly for the next 21 years and it will be credited directly by TNB into the customers savings or current accounts maintained by Bank Muamalat, he said. -- BERNAMA