Solar Power and Feed-in-Tariff In Malaysia Part 2

Source: www.anonymousartofrevolution.com

Solar energy is one of the renewable energies that are readily available in the world and of course in Malaysia, as our country is located at the strategic location – the equator. The sun produces an abundant source of clean, renewable energy. This can be converted into electricity using solar photovoltaic technology, usually referred to as ‘solar PV’. At the moment, the best mechanism in the world to drive the development of solar energy in the world is Feed-in Tariff (FiT).

Understanding Solar PV System

A solar PV system basically consists of four components:

1.      The PV Array
2.      The Inverter
3.      Generation Meter
4.   Performance Monitoring (optional)

How does Solar PV work?

The component in a solar photovoltaic (PV) system that generates electricity is the photovoltaic module. PV modules generate electricity when they are exposed to sunlight. The photovoltaic effect is the basic electrical process through which a solar cell converts sunlight into electricity.

*Note: The FiAH/owner of the house is not using the electricity generated from the solar panel. All electricity generated will go into the grid.

Types of Solar PV module

A)     Monocrystalline – made from wafers of a single silicon crystalline ingot, mono-Si.

B)     Polycrystalline – made from wafers of multicrystalline ingots, poly-Si

C)      Thin Film – made from a thin deposition of semiconductor material sprayed onto the glass. The commonly used materials are amorphous silicon (A-Si), cadmium telluride (CdTe), Cadmium Iron Selenide (CIS) or Copper Indium Gallium Selenide (CIGS).

Can solar PV work for you?

Before you invest in a solar PV system you need to check the following:

-          Is the roof tilting less than 15 degrees?

Solar PV modules need maximum exposure to the sun, and this means that the tilt should not be more than 15 degrees for PV application in countries lying along the equator as PV on façade loses nearly half of its potential energy yield.

-          Will trees or buildings cast a shadow over the solar PV modules?

If part of a PV module is in the shade, then the amount of electricity generated will be reduced.  

-          Is your roof structurally sound?

It will need to take the extra weight of the solar PV modules plus the mounting structure.

Income and Savings

Before installation, you are advised to register and secure the feed-in tariff quota. Under the Feed-in Tariff Mechanism, your Distribution Licensee will pay you for every kWh of electricity your system produces and supplies to the grid.

Feed-in Tariff rate depends on the capacity of your PV system and the year when the system achieves commercial operation. Different capacity has different FiT rate. Besides receiving the basic FiT rate, you may receive bonus rate if your system satisfies certain bonus criteria. Your monthly income will depend upon the type and capacity of your system. In Malaysia, each kW of Solar PV will generate an average of 100kWh (kilowatt hour) of energy a month.

Example:

Code	Item	Amount
[A]	Total installed capacity	4kW
[B]	Average monthly energy generation	400kWh a month
[C]	Basic FiT rate for 2013 + bonus rate (i)	RM1.1316 + RM0.2392 = RM 1.3708
[D]	Monthly FiT Income ([B] x [C])	RM548.32 a month
	Annual FiT income ([D] x 12 months	RM6579.84

You should also ensure that your chosen PV Service Provider has engineers with certificate in solar photovoltaic system design from any institution recognized by SEDA Malaysia.

Cost and Payback

The cost of a solar PV system depends on the size of the system, the type of PV technology and how easy it is to install at a particular site. According to the current market price (September 2013), complete installation cost for one kilowatt (kW) solar PV system would range from RM8,000 to RM10,000 for residential. Below is the illustration of simple payback for a 4kW PV system that will generate an average of 400kWh a month (with no loan from bank):

Code	Item	Amount
[A]	Annual FiT income (for rate of RM1.3708 per kWh)	RM6579.84
[B]	Installation cost	RM10,000 x 4kW
[C]	Return on Investment Period [(B)/(A)]	RM40,000/RM6579.84 = 6.08 years.

Most systems require little or no maintenance although it is worth cleaning the PV modules once a year. PV modules that are covered with dirt will reduce the system’s performance.

Installation

You need to contact a PV service provider and get the service provider to do the installation and help you to apply for the Feed-in Approval. Directory for PV service providers can be obtained from www.seda.gov.my > Directory > click on RE Industry Directory. There are over 100 PV service providers in Malaysia ready to help you. Be sure to get a few quotations for the PV system for price comparison. Look into their past projects and past experiences. Proven track record, accountability and reliability are very important indicators to ensure the quality and durability of the PV system installation.  

Eligibility

If you are interested to apply for Feed-in Tariff, there are a few criteria for the individuals:

1)      Malaysian citizen aged 21 years and above

2)      Ownership of the landed property (evidence must be provided to show the relationship between leasor and leasee).

3)      Each individual is limited to two applications

4)      Each application shall not exceed 12kW installation capacity

5)      Each application is to have different address.

(Complete eligible criteria can be found in www.seda.gov.my under Feed-in Tariff > How to become a Feed-in Approval Holder > Solar PV installations < 72kW).