An Economic Evaluation of Grid-Connected Photovoltaic Generation System for Residential House in Malaysia

Abstract

In term of renewable energy sources, solar energy is an option that is viable for Malaysia due to its location in the equatorial region. The Malaysian government is actively encouraging the public, the commercial and the industrial sectors to adopt solar technology to provide electrical energy to their premises. One of the initiatives to promote the implementation of PV system in Malaysia is the introduction of the Fit-In-Tariff (FiT) in 2011. In this paper, an economic evaluation of grid-connected photovoltaic (PV) generation system for residential houses in Malaysia is conducted. This research used quantitative method where actual data were taken from three residential houses fitted with the grid-connected PV system. This study also investigates the key factors that will affect the payback period of a grid-connected PV system such as solar irradiance, initial investment cost and the FiT rate. Finally the advantages of PV system installations in Malaysia are discussed in term of benefits to the society and the country. The outcome of this study will enable house owners to evaluate whether installing a grid-connected PV generation system is a sound financial investment and serve as a guideline for individuals when considering a PV system in Malaysia