BOS ASIA SDN BHD

BOS ASIA SDN BHD

Tuesday, December 18, 2012

FIT Rate for solar PV (21 years from FIT)


Project budget: Solar electric systems are not cheap and usually cost more than expected. Modest systems start at around RM45,000 but the majority fall in the RM60,000 to RM100,00 range. There are government incentives and rebates to takeadvantage of that will significantly decrease out of pocket costs. It may not be possible to produce 100% of the energy you use and many systems are supplemental, producing as much as space and/or budget allow. Please see SEDA for Feed In Tariff (FIT) detail.

The cost becomes more reasonable when looked at as a long term investment. After all, you are pre-paying for your electricity at a fixed rate for what could be the rest of your life and providing free energy for your kids and grandkids.

People often complain about a long payback period, but isn't any payback whatsoever a good thing no matter how long? What's the payback on the last car you bought? A PV electric system is a risk free investment with a guaranteed payback.

Easy calculations for system size and cost:

If you know your average kwh/day or know how many kwh/day you would like to produce, a simple calculation will determine system size and cost.

System size in kilowatts (kw) = (kwh/day) / 4 hours (peak sun) x 1.43 (system losses)
Step 1: Divide average kwh/day by number of hours of peak sun, or (kwh/ay) / 4
Step 2: Multiply by 1.43 to account for system losses due to friction, heat, and other inefficiencies.

Example: What size system is needed to produce 20kwh/day?

20kwh/4h = 5kw
5kw x 1.43= 7.15kw
7.15kw = system size to produce 20kwh/day assuming 4 peak sun hours (11am to 3pm).

System cost = system size x RM13,000 to RM15,000
Step 1: multiply system size by RM13,000 for competitive system cost installed
Step 2: multiply system size by RM15,000 for conservative system cost installed

Example: How much would a 7.15kw system cost?
7.15kw x RM13,000 = RM92,950 = competitive system cost
7.15kw x RM15,000 = RM107,250 = conservative system cost

We used to see an average cost of a grid-tied system to be about RM15,000 per kilowatt (array size) installed, but with a growing market, systems are being installed for as low as RM12,000 per kilowatt in competitive areas. Keep in mind that these costs are before any incentives or rebates are taken into account. When the FIT kick in, the return of investment (ROI) will be around 9 to 14 years depend on locations, solar systems, technologies and so forth.

Hopefully this helped introduce you to some of the basic considerations needed before purchasing a solar electric system. There is far too much information to cover in a short guide and anyone serious about greener living should contact us at info@bosasia.com.my or SEDA for more detail.

Please take notes:
1) Malaysia only has 4 hours solar insolation (some areas may be less due to pollution).
2) Malaysia has average of 2 months cloudy/raining day per year, which solar power is not favourable.
3) When solar cell (module/panel) heat up (after noon time), the solar cell's efficiency (power output) will start to drop. Which mean during a hot day, solar panel (PV) actually produce less. This is a major challenge for solar power in Malaysia.
4) Every few months, installed solar panels (array) need to be clean (due to dusk accumulation on the panel) for maximum efficiency. This is an extra cost for the owner and may increased longer payback period. Please also find out other maintenance costs.

1 comment:

  1. Simple trick to cut your electric bill by 75%:

    Want to know how to easily produce all of the renewable energy you could ever want right at home?

    And you’ll be able to make your home totally immune from power outages, blackouts, and energy grid failures
    so even if everyone else in your area (or even the whole country) loses power you won’t.

    VISIT THIS SITE: DIY HOME ENERGY

    ReplyDelete