Returns On Home Solar PV Investment
Passive Income of RM696 per month (RM8,352 per annum) Under
the proposed RE Act, the RE power system ( Solar PV, Biomass, Biogas, and SmallHydro) can enjoy the feedin
tariff rate. The following is the returns illustration given by MBIPV as illustrated in its FAQ. One of the
leading Newspaper quoted an example of Solar PV systems can earn RM696 a month from a 4KW solar
installation.
The following is the supporting computation
:
A 4 kWp Solar BIPV = RM60,000 (Cost of Capital Expenditure
 Capex).
The Solar PV system can generate 400 kWh (yield per month)
x 1.74 (FiT rate for 4 kW with BIPV) = RM696 per month (payment received from TNB)
Investment = 10% down payment + 90% bank loan at 6% for 15
years
= RM6,000 + [RM456(per month) x 15 years]
Key points:
Thus, with only RM6,000 initial investment, the person can
create Passive Income (secondary income) of RM240 per month for 15 years, and RM696 per month for another 6
years.
Thus, the roof can provide a shelter and also a passive
income to the owner, and offset CO2 from fossil fuel (1kWh = 0.7kg CO2).
Further Elaboration :
100% selffunded Assuming that the total investment
cost of RM60,000 is fully self funded. Base on earnings of RM696 per month ( equilavent to RM8,352 per annum),
the total income earned over the next 21 years will be RM175,392. This is equivalent to Returns on Investment
of approx. 14% per annum (RM175,392 / RM60,000) for the next 21 years.
