Anywhere it stated that the price won't drop? Please enlight me on this.
Even the flyer I received also stating the price won't be fixed and will change every year.
So if I were to trust you that the price is fixed, I'll be getting ~10% of return which excluding the service, penalty fee(if any) and changing the inverter cost.

This post has been edited by supersound: Jan 22 2014, 03:22 AM

Joc is right

- tariff (or selling price) drops every year.
- once its signed, the tariff is fixed for 21 years. No change.
- go read the draft Power Purchase Agreement on SEDA's website. its lengthy but its there.

- don't go extrapolate your decision making process on wrong information. sure take you further and further off the wrong track.
- get your basic facts correct first.

The rate is changing every yrs. But once you sign the contract with TNB at that yrs and you agree with that rate price, the price will be lock for 21 yrs. If TNB change the rate after the signing contract, you can sue him. This is what the contract need. Example, if that yrs rate is RM1.5, and you sign the contract with TNB, RM1.5 will be lock for 21yrs. If next yrs rate is RM2.0, you don't get that rate.

Panel will be degrade. And that depend on quality of the panel. The rule is cheap thing not good.

Maintenance is cleaning and inverter replacement. Inverter lifetime is probably 5-7yrs and also depend on quality. Price range RM5k-7k and yes, this will probably going up price for 21yrs.

To earn from this, more KW you instal the faster you get back your money.

Stated price wont drop in the Agreement, they call it REPPA. I know cause i signed it?

The price drop every year is because they expect total system cost to drop every year, at an average of 8%

Hence, when you sign on that year, you will get that year's for the next 21 years. If you sign next year, system cost drop so then FiT rate drop, else the rate of returns are out of whack.

Let's see, assuming I'm opting a 4KW system this year, in 21 years, I'm getting rm146390.63
Invesment put in, rm40000 or rm47200 with interest.
Inverter I need to change 3 times, so rm21000.
Read from newspaper, I need to service the panel every 3 years and each time rm300-500, rm3500 for 21 years assuming panel does not failed(bought NASA quality type which in real life SEDA is giving low quality MIC).
So, I need to take out rm47200+rm21000+rm3500=rm71700.
Now, am calculating ROI for each year, rm146390.63-71700=74690.63, then divide by 21, rm3557 a year
In return, I'm getting ~4.9%, right?

This post has been edited by supersound: Jan 22 2014, 10:08 AM

Are you trying to say that 8KW system same as 4KW system?

This post has been edited by supersound: Jan 22 2014, 10:08 AM

Is your calculation base on 5 hours sunny time per day? I think it is pretty hard to get it in Klang Valley especially during monsoon session.

3.5 from earlier replies. And based on my neighbour's estimation. But he already installed the system for more than 4 years.

You won't get 146,390.63 for 21 years if you base on 3.5 hours, Fit rate in Jan 2014 is 1.0411 per KWh, 4KW system x 3.5 hours = 14KWh, in reality, your panel won't make max output at 4KW, so 14KWh x 90% = 12.6KWh x 1.0411 x 365 = 4,788/year or 100,548 for 21 years

My conclusion, if you don't take loan, then it is good for investment, otherwise, it take too long to recover your initial investment cost (around 10 years).

Well, if this is a good investment, I already put the money in, and will use cash.
But the fact is, there's just too many grey area that nobody wants to surface it out, I just want to surface this out.
If consider everything in, from the panel's efficiency to the cost of inverter, the actual ROI I'll be getting are <2.5% which put in FD will yield better return.
Also, we need to consider the panel's location.

This post has been edited by supersound: Jan 22 2014, 11:35 AM

Commenting just to clear confusion

1. 4kWp installed panels will not hit 4kW output, but will give you the 14kWh per day average. NOTE: kW and kWh is different, the 14kWh is based on hundreds and hundreds of installed systems in Malaysia. My bandar utama house 4kW can sometimes give me 21kWh on one day, and low side on 11~12kWh on rainy day

2. 2014 lowest residential rates are Category a(ii) RM1.0157 + Category b(i) RM0.2201 = RM1.2358 / kWh sold to TNB because you are definitely putting on roof top. So those calculating ROI, please recalculate again.

3. Inverter warranty you guys are assuming to replace every 7 years, but, now inverter manufactuers offer warranty extension up to 25 years. Hence, if extend to 10years warranty, only cost RM600++ i think to top up, if up to 25 years which is longer than your FiT contract, its double the inverter value ie. another 7~12k depending on system size. 7k for 4kWp system as you guys mentioned. And if as if not safe enough, there's ALL-RISK insurance offered also if wanna buy incase RM40k goes up in smoke/fire.

4. There is no maintenance, all static no moving part, nothing needs to be changed unless during future renovation cables are damaged. There is service, ie washing the solar panel, but thats it. And inverter firmware update if got. Else, ZERO maintenance and i haven't bothered about my system for 2 years, never climb up roof. Occasionally just go see my meter turn how much, and if my inverter got problem, it will email me, and i can see daily generation on my mobile app.

5. Those that have installed are mostly quiet and don't want to comment, making it quite grey, because they are making good money, why share so much info and create demand that will take up the quota then i can't apply for more. Of course i will only share with those that believe in the technology and then i can tell them the added bonus is making money. Not those that only want to make money as the main and only motivation, and don't want to believe in the technology (skeptics).

6. Hence, those calculating ROI, which actually should be IRR due to inflation and time factor of 21 years, based on your capital outlay, you will see double digit returns. And those that talk about taxable income then you can ponder on converting to an enterprise and capitalise on Capital Allowance. These info are available on SEDA's website.

My 2 cents, hope that clears up a bit on the calculations.

Best is get the actual figure from those already install. And you can calculate the ROI.

The main culprit is the weather. Given Dec is the lowest output.

Don't understand what you mean.

8KW of course output higher than 4KW. But 4KW doesn't give you 4KW for an hr. It is only about 50-75% from the 4KW.

Well, what was installed few years ago cannot be used on today, as the price are reduced.
If not mistaken, the starting price was rm2.** when introduced where only crony or SEDA direct members only can apply.

What I asked is is the 8KW system installation cost same as 4KW system?
For the sake of having good figures(like another member replied to me), I will always assume the efficiency is at 100% and no parts will failed for the 21 years.

I'm taking a 4KW system as calculation and you use >4KW,<24KW system, interesting discussion but I guess I'll stop here, I don't think there's any point to continue such discussion.

I read the previous posts - common misconception;

Kw (kilo watt) is NOT kwh (kilowatt hour)

Kw is like capacity. Think of car engine size. Say 1600 litres engine etc.

Kwh is like output. Think of car speed like kilo metres an hour (kmh).

Increase in kw should increase kwh however it still depends on the numbers of sun a day, etc.

IF YOU DON'T GET THIS CONCEPT, read it again until you do. Otherwise, no point progressing.

Well, is someone don't know, not me.
a 4kw system won't yield 4kwh of output, unless it is DC, DC will have higher efficiency compare to AC at any 1 time.
Using DC as main grid will be great, but to invest on this, compare to AC it may cost another 5-10 times more.
So, the inverter shall have output of 270-280V instead of 250V. If you do take our main TNB supply, it may as high of 253V
Since you talk about engine output, increase the engine's capacity = increase of cost of ownership. Will a 1500cc engine output's price same as 3000cc engine output's price?
I can always take 3000cc engine and race against an 1500cc car and boast around I'm the winner.

hey guy, any vendor to recommend?

Currently the actual quantity of ISPQ is not more than 100.
You could ask them to provide the actual ISPQ Certication and most do not have them.