Solar photovoltaic in Malaysia: the way forward

Firdaus Muhammad-Sukki, Abu Bakar Munir, Roberto Ramirez-Iniguez, Siti Hawa Abu-Bakar, Siti Hajar Mohd Yasin, Scott G. McMeekin, Brian G. Stewart

Research output: Contribution to journalReview article

49 Citations (Scopus)

Abstract

This paper examines solar photovoltaic (PV) in Malaysia. First, it analyzes the current energy demand in Malaysia and discusses some of the national policies and the installations of solar PV in urban and rural areas in the country. Next, the general Feed-In Tariff (FiT) scheme is explained, indicating its potential as one of the investment options for Malaysians. Finally, the loan financing option for solar PV is presented, providing examples that have been implemented in other countries, as well as explaining the Green Technology Financing Scheme (GTFS) for companies and the proposed soft loan scheme for individual households in Malaysia. It also analyses the impact of the proposed interest rate to household consumers in Malaysia, in terms of total profit, net present value and 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 solar PV installation, it is shown that the GTFS is a good financial source for companies while for individual home owners, a soft loan facility from banking institutions is a feasible source if the interest rate is 5% or less. 

Original languageEnglish
Pages (from-to)5232-5244
Number of pages13
JournalRenewable and Sustainable Energy Reviews
Volume16
Issue number7
Early online date28 Jun 2012
DOIs
Publication statusPublished - Sep 2012

Keywords

  • feed-in tariff
  • interest rate
  • solar energy
  • solar photovoltaic

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