Bro walker, hold your horse :-)

Lets assume you using 4kwh system, a month about rm450-rm500.

just to add, the rates will lower 8% every year..it's called degression rate, so what you get now in $$ and few years time is not the same even if monthly the weather give you the same kwh.

I think is for new owner apply for FiT. Not auto reduce for signed contract.

What is a ‘degression’? What does it mean and why is there a need for one?


Tariff degression refers to the annual reduction of renewable energy tariffs. The rate of reduction depends on  maturity of the technology and the existing cost reduction potential. Tariff degression applies to all technologies and will only affect a developer every time he/she applies for the FiT

For example, a home owner (A) installs a solar PV system in year 1 and signs an agreement with TNB with an FiT rate of RM1.75 per kWh. Home owner (A) will continue to receive this rate throughout his/her agreement duration of 21 yrs. A year after home owner (A) installs the system, his/her neighbour, (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, home owner (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.

Fong also announced that SEDA Malaysia has received a directive from the Minister of Energy, Green Technology and Water that from January 1st 2014 to December 31st 2017, the degression rate for solar PV for individuals will be reduced to 0%. Currently, the degression rate for solar PV for individuals is set at 8%.

This means the FiT rates for solar PV for individuals will remain the same for the duration. The ministry anticipates that with greater public participation in the Solar Home Rooftop Programme, the public will be more willing to contribute to the Renewable Energy Fund, from which the FiT is drawn.

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!!!

Its gurantee in term of per kw you locked with TNB. but how much u can generate is up to your system setup and weather. Also do note that with full sun light for 4kw you still cant get the rated energy. Most around 80-90% of rated energy generation. So check with the company u going to hire what is the gurantee effecient the system setup.
Bro kiding, ur calculation is worst case senario and the panel doesnt cost that much le. Max rm50k for 4kw system. U still making profit just that taking very long period.

Malaysia average sunlight is more than 3 hours.

Now I know what you mean.

3.5kWh/kW is the good sunlight hours which is the performance of PV system regardless the capacity. Some people pronounced as 3.5 good sunlight hours. 3.5kWh/kW is not same as 3.5kWh

My system has capacity of 7.7kW. The generation based on 3.5kWh/kW will be 7.7kW x 3.5kWh/kW = 27kWh.

My installer compared mine to other 20++ installations. They said my system performance is above average but not the best.
The best performance was 5.2kWh/kW or 40kWh on 1st Mac. In whole Mac, 1000kWh generated from my system.

Here is avereng real life example data. We can use his to calculate if the actual return happen. avereng use 7.7kw capacity solar panel.

His calculation is confusing.   What does this mean --> 3.5kWh/kw ?

3.5kWh/kw means for every kw of solar panel, you will get 3.5kWh of energy produced in a day.

Than it should be 3.5kwh/kwp? But is it accurate?

He have 7.7kw panel and base on 3.5hr sunlight, able to generate 27kwh ? That is 100% efficiency?

Recalculate again ...

Assuming 4KW suystem is 50K, 10 years loan (10% down payment) with BLR 6.6% is 45000 + 16591(interest) = RM 61591, 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 - 61,591 - 5000 (10% down payment) - 14,700 = 21,273 (now looks not bad, even in worst case scenario, of course the PV system must last for 21 years)

RM 21,273 profit turn out to be RM83 per month for 21 years, if the household electricity bill is less than RM83, basically you can free electricity.

You are right, it should be 3.5kwh/kwp, I missed the 'p'.  No system operates 100% efficiency.  The 3.5hr already consider the system loses.  In our country we normally get more than 3.5hr of sunlight but due to higher temperature and system losses, cloud, rain, on average we will get around 3.5kwh/kwp for our panel.

FYI, from 7 mths operation experience, 3.5kWh/kWp is conservative assumption. During good month, 3.8-4.0kWh/kWp is possible

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!!!

I made a few random calls from the providers on the SEDA website. I got an average quote of RM9k per kW.

One provider said, if possible go for the max 12kW install. This is what's allowed max per house.

So based on SEDA website, its RM1.1040 + RM0.2392 + RM0.030 = RM1.3732.

Would running 12kW make sense for investment + offset electric bill?

Anyone installed to their house before? Can you share or PM me the contact of your installer? I'm quite keen on doing this before this years quota is up.

thanks