Title :
Soft loan for domestic installation of solar photovoltaic in Malaysia: Is it the best option?
Author :
Muhammad-Sukki, Firdaus ; Munir, Abu Bakar ; Ramirez-Iniguez, Roberto ; Abu-Bakar, Siti Hawa ; Yasin, Siti Hajar Mohd ; McMeekin, Scott G. ; Stewart, Brian G. ; Anuar, Khairil
Author_Institution :
Sch. of Eng. & Built Environ., Glasgow Caledonian Univ., Glasgow, UK
Abstract :
Malaysia has passed the Renewable Energy Act in April 2011, in which the Feed-In Tariff (FiT) mechanism is introduced. The FiT gives much emphasis on the solar photovoltaic (PV). This paper presents, first, an overview of solar PV in Malaysia until the present time. Next, a general concept of the FIT Malaysia is explained and finally the loan financing option for solar PV is presented. It also analyses the impact of the proposed interest rate to household consumers in Malaysia, in terms of the total profit, the net present value and the internal rate of return. It is found that the FiT scheme could potentially help in increasing renewable energy penetration, particularly for solar PV. To provide upfront capital for domestic solar PV installation, the soft loan facility from banking institutions is a feasible source if the interest rate is 5% or less.
Keywords :
economic indicators; photovoltaic power systems; solar power stations; tariffs; FiT mechanism; Malaysia; domestic solar PV system installation; feed-in tariff mechanism; internal rate of return; net present value; renewable energy penetration; soft loan financing; solar photovoltaic domestic installation; Economic indicators; Educational institutions; Electricity; Investments; Photovoltaic systems; Renewable energy resources; feed-in tariff; interest rate; internal rate of return; net present value; solar photovoltaic; total profit;
Conference_Titel :
Business Engineering and Industrial Applications Colloquium (BEIAC), 2012 IEEE
Conference_Location :
Kuala Lumpur
Print_ISBN :
978-1-4673-0425-2
DOI :
10.1109/BEIAC.2012.6226089
