Five things to consider when installing solar panels at home
If you are reading this article, you would probably have decided to install solar panels at your home for electricity bill saving. First of all, good on you for taking this step towards a greener future, and you will be surprised to know how you can save up to 90% of your bills.
Still, installing solar panels can be a significant move, so here are some things to consider when it comes to bringing renewable energy into your home electricity equation.
Content
1. Rooftop
2. Monthly electricity expenses
3. System Size
4. Installation Cost
5. Financing
Suitability
1. Your rooftop
Before getting into the details of the solar systems, something very important to note is the type of residential property you own and the amount of roof space your home has. A minimum roof space of 36m² is required, preferably flat surface without potential shading.
2. Electricity usage
The Malaysian Government is subsidising the low voltage domestic TNB residential consumers. If your electricity bill is below RM300, you will not see significant savings when installing Solar PV system.
At what threshold at which installing solar becomes feasible for the homeowner?
Soon Li Wei, who installed a solar PV system in July 2023, and successfully reduced his monthly electricity bills by RM280 recommended: “Homes should ideally have power bills above RM200 a month as an ideal starting line to consider solar PV system.”
3. System Size
Now you should be thinking “What Type of Solar PV System Should I Choose?”.
If your house has only a single-phase power supply, you can choose to install a solar PV system with 4.5 kWp or 5.8 kWp solar capacity. If your house has a three-phase supply, you should refer to your monthly TNB bills.
We’ve prepared a list of suggested solar system capacity with its expected savings for your reference. The size of the solar PV system should align with your electricity consumption and available roof space. Assess your clean energy needs and consult with professionals to determine the appropriate system size.
| TNB Monthly Bills | Suggested Solar Capacity | Expected savings |
|---|---|---|
| RM 300 | 4.5 kWp | RM 182 - RM 242 |
| RM 400 | 5.8 kWp | RM 275 - RM 334 |
| RM 500 | 6.7 kWp | RM 362 - RM 403 |
| RM 600 | 9.0 kWp | RM 480 - RM 538 |
| RM 700 | 10.8 kWp | RM 588 - RM 649 |
| RM 800 | 12.6 kWp | RM 695 - RM 977 |
| RM 900 | 14.5 kWp | RM 1,025 - RM 1,152 |
| RM 1,000 | 16.2 kWp | RM 1,152 - RM 1,242 |
*How to check if your electricity is supplied by single/three phases
Find your fuse box and locate the main switch. They’re often labelled and in the middle or top of the box. If the main switch is 3 “poles” (switches) long, you have 3-phase power. If it’s 1 or 2 poles, it’s single-phase.
Affordability
4. Cost vs ROI
Solar panels are currently the cheapest it has ever been, making it a great time to buy. To get an idea of the cost of installation, it comes back to how much your monthly power bill is, and it will decide the solar PV system capacity you need for your house.
Here’s a table of the cost of the system size compared with your electricity bill.
Generally, if your electricity bill is around RM600, you should select a solar PV system between 4.5 kWp to 9 kWp. To save up to 90% of your bills for the next 25 years, it will cost you around RM630 per month depending on your installment plans.
In 10 years’ time, you will enjoy up to RM 64,500 savings and you’ve already achieved ROI in your 5th year. Learn more about how much you can save in 10 years.
5. Financing
The Malaysian Government has announced a SolaRIS program to provide a RM4000 rebate for homeowners who participate in NEM Rakyat Programme.
Starting 5 Feb 2024, you can apply for the additional quota online through the e-NEM system. The government has recently announced an additional Net Energy Metering (NEM) Rakyat allocation of 100 MW for all Malaysians, allowing you to export additional electricity from your own solar PV system to offset your electricity usage and save up to 90% of your electricity bill!
Besides that, there are actually many payment options in Malaysia beyond paying out-of-pocket, with financing options offered by local banks, TNB, and even the licensed providers themselves. The standard options of taking out a personal loan, paying by instalments, swiping a card, or paying in cash all still apply, though banks generally have a programme for solar owners which prospective buyers can ask about. Check it out here: Residential Solar Financing Plans
Reference:
Chuping, Perlis, 50MW
5,172 cars taken off the road
2,232,224 trees planted a year
49,108 tonnes of CO2 offsetted
Dengkil, Selangor, 13MW
1,345 cars taken off the road
580,378 trees planted a year
12,768 tonnes of CO2 offsetted
Manjung, Perak, 12MW
1,241 cars taken off the road
535,734 trees planted a year
11,786 tonnes of CO2 offsetted
Lembah Beriah, Kerian, Perak, 13MW
1,345 cars taken off the road
580,378 trees planted a year
12,768 tonnes of CO2 offsetted
Read More
1. Solar System Maintenance
2. How do I monitor the solar system’s performance?
3. How to save up to 90% on electricity bills?
4. What is NEM? How does it work?
5. How to apply for NEM?