As energy costs continue to rise and environmental concerns grow, many Malaysians are turning to solar power as an alternative energy source. Solar panels are becoming increasingly popular in Malaysian households as a way to reduce electricity costs and help the environment. Solar panels offer a sustainable, long-term solution for reducing electricity bills while contributing to a cleaner environment.
Before making the leap, it is important to understand the full cost of owning a solar panel system in Malaysia. The cost of owning a solar panel system in Malaysia can vary depending on the number of factors; the size of the system, type of panels used, location of the installation, and the maintenance to return to investment (ROI).
Initial Costs of Solar Panel in Malaysia
The first and most significant expense when installing solar panels is the upfront cost of the system. This includes solar panels, an inverter, mounting hardware and installation fees. On average, the cost of a solar panel system in Malaysia is between RM15,000 to RM40,000 depending on the size of the system, which is measured in kilowatts (kW).
The cost of owning a solar panel system in Malaysia can be broken down into the following components:
- System cost: Includes the cost of the solar panels, inverter, racking, and other components.
- Installation cost: Includes the cost of labour and permits.
- Maintenance cost: Includes the cost of cleaning the panels and inspecting the system.
- Battery cost: If you want to store excess energy for use at night or during power outages.
- Small systems (3-5 kW)
- For a typical household, a 3 to 5 kW system is ideal. This would cost around RM15,000 to RM25,000.
- Medium systems (6-10 kW)
- Larger homes or small businesses might require a system in the range of 6 to 10 kW, with an average cost of RM25,000 to RM40,000.
- Large systems (10 kW+)
- For larger energy needs, such as for commercial or industrial buildings, systems larger than 10 kW can cost upwards of RM 50,000.
The Malaysian government, through programmes such as Net Energy Metering (NEM) scheme, allows solar panels owners to sell excess energy back to the grid, reducing electricity costs further. Additionally, tax incentives may be available for those who install solar panels, which can significantly reduce the overall cost.
Breakdown of Costs
- Solar panels
- Solar panels typically make up about 50-60% of the total cost of the system. These costs can vary based on the type of solar panel you choose, with monocrystalline panels being more efficient but slightly more expensive than polycrystalline panels.
- Inverters
- An inverter converts the direct current (DC) generated by the panels into alternating current (AC) used by most household appliances. The cost of an inverter can range from RM3,000 ot RM7,000, depending on the size and efficiency of the system.
- Mounting Hardware
- The mounting hardware secures the panels to your roof or ground, ensuring they remain stable and optimally angled to absorb sunlight. This cost is typically around RM1,000 to RM5,000, depending on the complexity of the installation and the type of mounting used.
- Installation Fees
- Professional installation is crucial to ensure the system works efficiently and complies with local regulations. Installation costs can range from RM3,000 to RM10,000 depending on the complexity of the setup and labour charges in your area.
Ongoing Costs
- Maintenance Cost
- The maintenance cost of a solar panel system in Malaysia is relatively low. Solar panels require very little maintenance, and they typically last for 25 years or more. However, regular cleaning and annual inspections are recommended to ensure optimal performance.
- You will need to clean your solar panels regularly to remove dirt and debris. You can do this yourself, or you can hire a professional to do it for you. The cost of cleaning your solar panels will vary depending on the size of your system and the location of your installation. The cost of maintenance services, including cleaning and system checks, ranges from RM 500 to RM 1,000 per year.
- You will also need to have your solar panel system inspected regularly to ensure that it is operating properly. This can be done by a qualified solar installer. The cost of inspecting your solar panel system will typically be around RM100 per visit.
- Battery Storage
- If you want to store excess solar energy for use during the night or during power outages, you'll need a battery storage system. While optional, this can significantly enhance the effectiveness of your solar setup.
- As a general rule, you can expect to pay between RM1,000 and RM2,000 per kilowatt-hour (kWh) of storage capacity for a battery. For example, a 10 kWh battery would cost between RM10,000 and RM20,000, depending on capacity and technology (e.g., lithium-ion batteries are more expensive but more efficient).
- Inverter Replacement
- Inverters have a lifespan of around 10-15 years, which means they may need to be replaced once during the system’s 25-30 year lifespan. Replacing an inverter can cost around RM 3,000 to RM 5,000.
Return on Investment (ROI) of Solar Panels
One of the key factors to consider when investing in solar panels is the return on investment (ROI). ROI refers to the time it takes to recoup your initial investment through savings on your electricity bills. In Malaysia, depending on your energy consumption, system size, and government incentives, you can expect an ROI within 6 to 10 years.
- Electricity Savings
- In Malaysia, the average household electricity consumption is about 300-400 kWh per month, which amounts to an electricity bill of RM 200 to RM 300 per month. With a properly sized solar system, you could potentially reduce this cost by up to 90%, depending on the size of your system and how much energy you consume.
- For example, if your electricity bill is RM 250 per month, a 5 kW solar panel system could save you RM 225 per month. Over a year, that's a saving of RM 2,700, and over the course of 10 years, you would save RM 27,000—more than enough to offset the initial installation cost.
- Net Energy Metering (NEM)
- Under the Net Energy Metering (NEM) 3.0 scheme, you can sell excess energy generated by your solar panels back to Tenaga Nasional Berhad (TNB) at a 1:1 offset rate. This means you’ll receive credits for the energy you supply to the grid, further reducing your electricity costs.
Conclusion
Investing in solar panels in Malaysia is a smart decision for those looking to reduce electricity bills, decrease their carbon footprint, and potentially increase the value of their property. While the upfront cost may seem steep, the savings on electricity and government incentives make solar a viable long-term solution. Depending on the size of your system and energy consumption, the payback period can range from 6 to 10 years, after which your solar power system essentially provides free electricity.
By considering all the factors mentioned, from installation to maintenance and battery storage, you can make an informed decision about whether solar energy is the right investment for you.
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