ROI of installing Solar

Environment

I can’t get my mind over this but the cost of solar has gone down dramatically, coupled with the RM4k SOLARIS subsidy the gov is giving now, it makes tons of sense to install solar panels. Based on my energy usage I’m looking to install 4.84kwp 8 panels with 605W Trina panels and hoymiles micro inverter. Cost RM16k before gov subsidy, so net will be RM12k. Payback period <5 years. With NEM3.0 there will be no need to think of battery storage for 10 years, so literally after 5 years, free electricity! How has the experience been so far for those who has solar installed? 🧐

Add: Wonder has anyone gotten their SOLARIS rebate?

in malaysiaby bryanlay10000

97%

15d

13d

lolfuljames

15d

Just curious, can we sell back extra electricity to TNB?

oblonginthecity

15d

The NEM policy does not allow selling back, but tnb gives you credits that lasts for 12 months. So if a particular month you use more than was generated, it will first take from the credit you have.

averagepgdriver

15d

While it is something, for solar to grow we really need to change the laws and allow feed-in tariffs so you get money back if you produce more.

The current system is dumb because someone producing more in one month is likely doing the same for the next 12 months and then the credit expires giving TNB free money.

Naeemo960

15d

Hard to say honestly, if its the rainy season, you’ll have reduced output. Plus, I think the installers would recommend just the right amount to get the best ROI.

Its a win-win I guess, we can zerorise our yearly bill, TNB doesn’t have cash flow disruptions. People just can’t make side income from excess, thats all.

devindran

15d

It used to be that way in NEM 1 and 2. Of course our protek government would agree to this credit system which is inferior to the older system.

methiasm

15d

FiT is relevant when you need more participation. But there is no issue on participation no, most working in construction proj are rushing to install it on every roof. Its not dumb, its simply supply and demand.

Fyi you know where FiT money come from? Our TNB bill.

isaidchoochoo

15d

You keep the extra power as credit and can use it for free when your solar power system cannot generate enough electricity when weather is bad. TNB keeps a tab on it and deduct your power bill using your credit first.

GreenLeaf_M

15d

Following this topic.
If some owner can share the following details, this will be a very super informative reference:
tnb bill before solar
tnb bill after solar
what solar W installed
what is the solar price

devindran

15d

Before: 6-800 per month. AC, washer/dryer, Charging EV

After: 40-60 per month

14kwh

RM 40k

Kenny_McCormick001

15d

Don’t mind my follow up ques. Does it lower the temperature in your house? I heard the every layer of solar panels above the roof, means the sun don’t hit roof directly and this lower indoor temperature.

devindran

15d

Don't really notice any lower temp. Climate change is making everywhere hot inside and outside. But technically yes, solar panels have been known to reduce roof temperatures.

padmepounder

15d

Negligible difference in temps IMO

GreenLeaf_M

15d

string or microinverter?
Do you mind share roughly how much electricity the EV consume for how many KM?
I have one AC running most of the time. monthly bill is currently ~80 for two people..
not sure worth solar or not. I use electricity very cautiously. ahha..

devindran

15d

String. At the time I installed it I never found any provider offering micro inverters.

My understanding is micro inverters would jack up the cost but the overall benefits are negligible except the warranty. Yes you get better overall performance and observability but on average if you see your output dropping you can reach out to the provider to come check.

I got solar based on a 10 year projection, i.e. what I think my consumption will be in 10 years when my kids are older and use more electricity, if there are multiple EVs in my house, and average cost of electricity from TNB.

But my primary goal was to go green. I want to be as carbon neutral as I can get and if it means paying more now, I felt ok to do it.

DontStopNowBaby

(○｀（●●）´○)ﾉ

15d

Is that 40k inclusive of the solar panel cleaning and maintenance? How does the total cost pan out over 15 years?

devindran

15d

Not inclusive. Cost of maintenance is relatively cheap. Few hundred and recommended only if needed (maybe 2-3 years once).

If you're scouting for providers get the highest possible warranty on the inverter and solar performance. That way you save on potential future costs.

DontStopNowBaby

(○｀（●●）´○)ﾉ

15d

I was doing a small windmill and solar panel project for uni before. No idea if it's dead or not. But iirc we were told we had to change the panel every 15 years. Not sure if that's changed now. If it still stands then that'd mean we have to fork out 40k every 15 years?

Thanks on the advice.

devindran

15d

Nope. The inverter makes up a significant portion of the cost.

The panels themselves have a long warranty (15 years for mine, 30 years performance warranty) so even after 15 years unless every single one of them breaks down, the cost of replacement is minor.

Also add on that the cost of solar panels get cheaper every year, so in 15 years, replacing the panel is also going to be cheaper.

hackenclaw

Kuala Lumpur

15d

Approx how big the area 14kwh panels occupy in sqft or meter square?

devindran

15d

Roughly 70 sq meter if I remember correctly. 25 panels.

MalaysianOfficial_1

15d

My parents installed solar panels a few years ago. Bill went from ~RM300/month to nearly nothing. Cost of installation back then was about RM20k. This was just slightly before the gomen started offering rebates.

ReoccuringClockwork

15d

For 7 kw/h of panels?

pek_starter_1234

Best of 2022 WINNER

15d

Honestly upfront payment of RM12k really isn’t that bad! Some peoples kitchen reno costs more than that.

devindran

15d

Solar is no brainer if you have the funds. There are certain technicalities you need to understand with NEM if you are looking to maximize your ROI but overall you will see a big cut in your TNB monthly bill.

Plus in the long run it's better for the environment.

bryanlay10000

15d

Fully agree! Most of the companies now are providing financing options of up to 60 months. If you opted for that and dividing the total cost by installment months, you are basically paying to build assets instead of bill. No brainer!

ExcavalierKY

15d

Which brand/supplier did you go with? Any particular reason why this one over the others?

bryanlay10000

13d

Went with a company called PathGreen, established since 2011 with offices in Penang, JB and KL. They use the highest output Tier1 panels from all the companies I surveyed (605W vs <600W from other provider), microinverter instead of string, 5 years free maintenance, options for 60 months 0% interest installment. And most importantly, best price per kWp.

Begin to sound like a sales person 😂

(1 out of 3 companies mentioned by MIDA - Malaysian Investment Development Authority https://www.mida.gov.my/success-stories/

https://www.mida.gov.my/success-stories/pathgreen-energy-sdn-bhd-pathgreen-is-one-of-the-pioneers-of-solar-pv-service-provider-with-full-fledged-operations-maintenance-services-in-malaysia/ )

ExcavalierKY

13d

All good, thanks for the info!

Educational_Task_765

15d

I have a lot of monkey going around my neighbourhood area walking on roofs so quite worried they will break it. So like how strong are solar panels?

Puffycatkibble

15d

Where are you getting your quote from friend? Mind sharing the contacts? As the quotes I got were all much higher.

JosephCY

15d

Here's a blog post that answer most of your question including the calculations:

https://malaysianpf.com/solar-panels-malaysia-case-study/

devindran

15d

I don't understand why there are calculations about the rate you are selling back to TNB. NEM 3 should just give you credits in the form of kw/h, not RM equivalent. Am I missing something?

JosephCY

13d

Yes, I should have mentioned you can't really get money from TNB, just get credit that offset the usage, I guess i just didn't think too much because i didn't thought about people would generate more than they would consume when i write the blog post.

astoncheah

15d

Hi my monthly consumption is around 800-1000kwh I am very interested in installing one, any solar panel vendors in Penang?

Edited: found the top 10 vendors Malaysia, which is urs?

https://getsolar.ai/blog/solar-companies-malaysia/

hachuah

14d

I have been using for 5 years now, installed in 2019 for 31k. My breakeven point is 10 years, so I am about half way along now. So far, everything is well and according to plan. I am saving around RM300-400 every month. Looking forward to get free electricity in 5 years time!

bryanlay10000

13d

Nice! What capacity did you install? You are definitely among the early adopter, salute!

hachuah

13d

6kWp

moomshiki

15d

What about maintenance fees, and also potential of solar panels theft ?

bryanlay10000

15d

That’s a good point I consider but most panels I believe requires minimal maintenance and the contract I signed includes 5 years of free maintenance. Each panel is like 40kg on the roof and I think the risk of theft is low.

averagepgdriver

15d

In Australia I saw some people cleaning them once a year saying it got better output but I don't think that matters here with enough rainfall to clean them naturally.

Otherwise zero maintenance.

and I think the risk of theft is low

Thief will probably electrocute themselves first, they can be dangerous, even in low light.

Rates_Fathan

15d

I would argue rain makes it so that you'll have to clean more regularly. E.g. Leaving your car out in the rain will not make it clean, but dirtier

ReoccuringClockwork

15d

Would require at least 2-3 people and lots of effort, doing that at night looks like a way to get u killed.

moomshiki

14d

I hope so, I've read it is on the rise [1, 2], though not in Malaysia. The modus operandi appears to be similar to stealing infrastructure cables in housing area.

[1] https://www.energyglobal.com/special-reports/10102023/solar-theft-why-is-it-on-the-rise-and-how-can-farms-protect-themselves/

[2] https://businesstech.co.za/news/energy/710210/how-criminals-are-stealing-solar-panels-in-south-africa/

bryanlay10000

13d

There are also options to buy insurance for your solar system if you like

-OddLion-

15d

I don't understand the battery storage part. So there's no battery storage?

Kenny_McCormick001

15d

TNB allows reverse metering, meaning if you produce more electricity than you use, the meter will run in reverse. Basically selling your excess for back to TNB. This is much better than any existing battery solution, unless you’re trying to live off grid.

bryanlay10000

15d

Currently under NEM3.0 it’s 10 years of contract with any additional unused units of electricity being sent back to TNB/grid and stored for future consumption. So there’s no need to consider battery under this period

AdamianBishop

15d

Panels get dusty overtime, thus reducing power generated. How do u guys deal with this maintenance cost? Surely going on the roof by yourself is very dangerous and not worth breaking bones for it

hachuah

14d

Actually so far I found that it doesn't really. Perhaps in Malaysia we get very heavy rain. I used to have maintenance come for free, but my maintenance has expired. I haven't found any degradation at all. And recently I went to the roof for another reason, and the panels are still very clean.

hackenclaw

Kuala Lumpur

15d

Payback period <5 years

Is this the best case scenario told by your seller? Do they have a median average?

bryanlay10000

15d

My monthly consumption is around 500kWh, and the solar power generation is calculated by: 4.84kWp * 3.5 hr peak Sun/day * 30 days/ month = 508kWh, so it fully covers my consumption for the month.

Investment 12k divided by my bill of around 180 per month get me around 5 years of payback.

I opted for 0% instalments for 48 months which means that I don’t have to pay 12k upfront and NPV (net present value) is lower coz of time value of money.

hackenclaw

Kuala Lumpur

14d

Just as I expected, basically you took the peak sun light instead of Median.

Peak sun light is not a good indicator, you definitely are not getting 5yrs of ROI if you assume you get peak sun light every single day.

bryanlay10000

14d

The peak here refers to the average peak sunlight received in a day and it’s based on global databases. And yes would expect slight difference here and there but worst case scenario I could still save a few years of electricity after the payback.

https://globalsolaratlas.info/map

bryanlay10000

15d

Wonder is anyone has gotten their SOLARIS rebate. It stated first come first served in their official page but didn’t quote any budget/quota.

RangerKarl

Damansara Heights drone

14d

Also curious to start. How did you get yours set up, OP?

bryanlay10000

13d

I think the first thing to do is to ask around and compare, research about inverter (String vs Microinverter), Solar panel type (Tier 1 brands preferred, bifacial?, output per panel?) and of course the price ( RM/kWp system)

Moderator removed comment

14d

no_hope_no_future

14d

Are we allowed to do DIY under Solaris program?

Napkin math: if we put the panels on the ground and not counting the cost of cables/fuses/brackets (which are minimal), the total is under RM4000:

6 x 400 W panels = RM2916 (~2400W total)
3200 kW hybrid inverter MPPT = RM970

edit: never mind it seems that you can only use their registered installer 😔

padmepounder

15d

With the new price changes this year, big users even if generate a lot of solar gets fucked if use more than 1.5K

lalat_1881

Kuala Lumpur

15d

I don’t recall the full details but a coworker of mine had them solar panels installed and his electricity bills went from RM400 per month to RM200 per month inmediately. he’s been using them for 2 years now.

3 missing replies