Solar Panel Price In Malaysia

A standard residential installation could vary from 4kW to 12kW, with costs ranging from between RM16,000 to RM23,000 for a basic system of 3kW.

Get an estimation of the cost of installing solar PV with the solar array size that suits you here.

Besides saving on monthly electricity bills, companies that undertake qualifying green technology projects for business or own consumption can enjoy double tax incentives: Capital Allowance (CA) and Green Incentives Tax Allowance (GITA).

Where To Buy Solar Panels?

The Sustainable Energy Development Authority (SEDA) Malaysia has a helpful list of accredited and registered companies selling solar equipment to check out.

Besides the list, Buy Solar is an online marketplace that connects solar buyers and suppliers. 

Terminology of this industry

NEM (Net Energy Meter):

The simple concept is you produce solar energy from solar PV for your own use. You will use it first, and the excess energy will be exported to the TNB grid and will be credited to your electricity bill as payment from TNB.

Feed-In tariff (Fit):

Payments are made to households or businesses generating their own electricity using natural resources. Malaysia’s Feed-in Tariff (FiT) system obliges Distribution Licensees (DLs) to buy from Feed-in Approval Holders (FIAHs) and sets the FiT rate. The DLs will pay for renewable energy supplied to the electricity grid for a specific duration for a favorable price per unit.

FiT Rates:

The fixed premium rate is payable for each unit of renewable energy sold to Distribution Licensees. The FiT rate differs for different renewable resources (small hydro, biogas, biomass, or solar PV) and installed capacities.

Difference between Fit and NEM:

FiT is a mechanism for granting selected customers to export all solar energy produced to the TNB grid and the quota has long been fulfilled for solar. The main difference is NEM mechanism allows you to generate your own energy and use it to reduce your electricity bill. Under NEM scheme, you can sell the excess energy to TNB and offset it in the next electricity bill. While Fit is more like collecting solar energy and supplying them to the TNB grid.

Types of Fit Renewable Resources:

There are 4 types of Fit.

1.      Small Hydro Power – generates from water. Moving water turns a turbine, the turbine spins a generator, and electricity is produced.

2.      Biomass – non-fossilized and originating from indigenous plants animals and microorganisms. Including agriculture and municipal waste. Electrical power can be generated by burning biomass which will burn.

3.      Biogas – from gas generated into electricity.

4.      Solar PV – generates from the sun. Comprised of photovoltaic cells, devices that convert light energy directly into electricity.

Degression Rate:

Tariff degression refers to the annual reduction of renewable energy tariffs. The rate of reduction depends on the maturity of the technology and the existing cost reduction potential after entering the contract for a specific period.

For example, a homeowner (A) installs a solar PV system in year 1 and signs an agreement with TNB with a FiT rate of RM1.75 per kWh. Homeowner (A) will continue to receive this rate throughout his/her agreement duration of 21 yrs. A year after homeowner (A) installs the system, his/her neighbor, (B) decides to install a PV system in his/her home too. By year 2 the FiT rate has now reduced by 8% to RM1.61 per kWh. Therefore, homeowner (B) will now have a 21-year contract with TNB selling their PV electricity at RM1.61 per kWh. This form of degression rewards the early movers of RE in the country and also promotes cost reduction of RE technology.

LSS (Large Scale Solar):

Competitive bidding program for the development of large-scale solar photovoltaic.

Banks Packages for Solar Panel Installation:

*C.C = Credit Card

Scheme Offered by Government

1.      NEM Rakyat Program for Residential Solar System [Cater to Residential Client]

This offer commences on 1 February 2021 and allows energy offset ratio at 1:1 with a roll-over period for 12 months. Maximum solar panels system size of 4kWac and 10kWac for single phase and three phase homes respectively.

2.      NEM GoMEn (Government Ministries and Entities) Program [ Cater to Commercial & Industrial Client]

This initiative helps reduces government buildings’ energy bills through the use of a solar PV system. The energy offset ratio is at 1:1. Rollover period is for 12 months. The maximum solar PV system size allowed is 1MWac per account.

3.      The NOVA Program [ Cater to Commercial & Industrial Client]

This program is aimed at reducing business costs through the use of a solar PV system by the commercial and industrial sectors. It enables successful applicants to consume, sell and offset the electricity.

4.      Supply Agreement with Renewable Energy (SARE)

The Supply Agreement with Renewable Energy (SARE) is a tripartite agreement between an investor and/or asset owner, a billing agent (TNB) and customer. It is a programme offered to eligible Commercial & Industrial customers with the intention of offering a lower tariff than the grid tariff.

Quota Allocation

There is a quota allocation for these schemes. Refer to the updated available quota here:  

Major player of Solar PV

1.      Gsparx

2.      Solaroo

3.      Res

4.      Solarvest

5.      Plus Energy

Source:iSquare