Well, you can consider ON Grid and sign contract with TNB now. If you have budget.

Signing with tnb required minimum of 4kw solar panels with minimum investment of rm40k.-50k. Ok i understand with the loan with zero blr. But with the money and return investment i better put into buying property. More gooding :-)

Don't forget Alliance Bank now offers 100% financing and they claim still get some money in the pocket every month (unless it rains everyday the whole month) after loan servicing !

Hi all,

I just stumbled on this blog. It is interesting to read through all the discussion. I am a former employee of a local module manufacturing company. Now working in an EPC company in renewables.

Hope to get more insights on how people perceive our local PV industry.

I am skeptic.. If its such a good deal everyone just get loan and let the sun do the investment for us. Maybe for people with few houses can have good return until no need to work?

If you get the BLR +0 then it will be tempting. Last time I ask only people who have their Privilege banking aka got 300k saving with them can get it. Else better off find better rates. Some people are looking at overdraft facility, ppl who work for GLC can get better rates for personal loan etc.

You need to comeout some figure before can see it really tempting. It is a long year loan.

I got to say, this is the most interesting thread i've come across in LYN...many good & useful info..i actually went thru all 22pages!! and got me really interested..

For me, the most important thing is knowing i'm contributing in reducing co2 emission, going green and just doing my part..secondly, TNB bill is my most hated bill..i really like to offset the electricity charges so in a way, using free or highly subsidized energy..

After going thru the threads and info, it seem the initial investment is roughly RM50k+ for a 4kw capacity PV system..and expect something like 3.5kw efficiency for FIT

Alliance bank has got this solar loan, with repayment tenure upto 10yrs, from my calc (consider blr+0 interest), RM60k loan will need repayment of something close to RM700..current FIT rate for 2013 & 2014 is around RM1/kwh

my question is, in order to generate enough kwh of FIT to just cover the loan repayment amount, what is the capacity of PV i need? realistically..(after factor in reduce efficiency, low yield from sunlight etc)

Or another way of asking, how much is the initial cost (which would dictate the loan amount) i need in order to sell say RM800-RM1k worth of electricity to TNB?

If i can get the initial cost financed, and the generated RE income can cover the loan repayment, i dont mind to install it..after 10yrs repayment i get to enjoy free electricity!!

btw, if the system is financed, can the taxable income from FIT be written off? Since i'm servicing bank loan & interest..and can show 0 profit since income is used to repY bank loan

Remember, solar energy output in Malaysia is not consistent due to cloudy weather, just like this week in Klang Valley, most of the time is cloudy, so that is your risk.

If can generage nett income, many people will ride on it.

In reality, the calculation is not that favor. But I m lazy to calculate out.

Anyway, you can try it out and see does it profit or not. Still need somebody to give us some feedback. that is you.

actually, i don't mind too much even if not profitable, as long as at the end of the day, my electricity consumption is subsidized by FiT generated...

although this few days or weeks weather is very cloudy, i'm rather confident bout the whole thing...seeing so many solar farm projects here and there, even bank offer loan for PV installations...it got to show that this system can generate nett profit, however small and long ROI

found this table on ERS website:


surely they are being optimistic..if take the 6kwp calculations, can make nett RM155 per month which is not bad considering no initial cost required..

but in real world, maybe cant generate profit, which i don't mind also, as long as can cover the loan repayment...

but the quota is always in demand is it? is it very hard to apply for quota? or are they snapped up by these system provider?

I think you still have to folk out some cash to topup the loan for 10yrs. The kwh system is not enough to cover the loan.

Do not get those sale guys or provider table to check. Of course the figure sure look nice. Can you believe it? Do you have your own figure?

The solar FIT is just start last yrs. How many people can tell a whole yrs average income, kwh generate and etc? We need real story.

They have quota and need to tender. TNB each yrs will comeout some MW quota for residential, comercial and farm. Each yrs have several time open for tender. But we normally never follow up. What you can do is, check with the provider. Tell them you need how many kwh and intend to install. They will alert you once the tender open and how to apply. The whole process till installation you can't do it yourself.

Bro walker, hold your horse :-)

Lets assume you using 4kwh system, a month about rm450-rm500. By end of product life in 25 years, you will get RM142K. Then deduct Loan interest and 100% asset depreciation RM65k balance is RM77K. Cost to service within 25 years is around RM10K-RM15K including inspection, cleaning and changin of electronic components. Left RM62K.

Other factors not included are degration of solar efficiency, moving of solar system due to roofing maintenance or move out, inflation that affect parts and labour costs and also risk in 25 years no break/stolen/fire/mothernature. Also many ppl thought that with solar system, the home will be 24 hours with electricity even TNB down. That is misconception. Its because wihout battery banks, the electricity genersted feed directly to TNB.

So the question go back to square, do you want to be energy independant, environment friendly or profit making?

okie...clear about the quota part now...so its not like i get to install when i want...must wait for the right moment...but planning for it should start early right? to be ready when tender is open...i'll keep that in mind!


honestly, i'm not that worried about making profit...it just never really cross my mind i can make profit from it...i'd say i'm more towards wanting to be energy dependent and doing my part for the environment as you put it...

on the $$ part, i look at it quite simply (not a complicated guy ) i only have to come out with 10% of the initial cost, rest is thru loan, and as long as i don't have to worry too much about repayment, then i'm quite happy already...even if i have to top up a little bit every month for the first 10yrs, i'm ok, coz i know after 10yrs, with additional top up (fraction of initial cost to replace inverter etc) i get to enjoy literally free electricity...

surely, if one thinks of making profit from this 'investment' then there's really no point going down this road...you're better off with buy-then-sell properties, shares, etc...

after the initial installation cost, the rest is done for us by the power of the sun and the PV arrays...as long as the sun stays up & shinning, i can expect generations of electricity, however little...

Once you tender in and get approval, you have half years to think want to install or not and get finance. Can take your time.

First thing got to do is get the provider some quotation and help you to tender. Fill up the form also not easy yor.

Just realize i have calculated for 25 years. TNB only pay up to 21 years so return is RM119k. So you pocket RM39k in 21 years.

Average monthly TNB subsidize about RM150.00 for your electricity bill.

Is it guarantee? or how do they calculate?

If you read back few pages a forumer have it install, and he give some few month data.

4KW system with 70K cost, if you get loan for 63K, and paid 6.6% (BLR rate) interest yearly, the total pay up in 10 years will be 63,000 + 23,227 (interest) = 86,227, and assuming maintenance per year is 700, total maintenance over 21 years is 14,700

assuming you can get 4KW x 3 Hours a day (worst case scenario), which is 12KWH/day x 1.1316 = RM 13.58 per day = RM407 per month

Over 21 years, you can get RM102,564 from TNB,

So profit you make over 21 years is 102,564 - 86,227 -7,000 - 14,700 = -5,363 (Rugi !!!!, of course this is worst case scenario)

So I'd say if you get loan from bank, your PV is working for bank, not you. the FiT is only for people with cash in hand!!!

Have not calculate income is taxable. Some say taxable, some say non. This the house owner need to findout.

Also have to factor in the efficiency drop.. Malaysia after Jul is consider cloudy and rainy season.

This post has been edited by weikee: Jul 20 2013, 12:25 PM