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Solar photovoltaic in Malaysia: The way forward

Author

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

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.

Suggested Citation

  • Muhammad-Sukki, Firdaus & Munir, Abu Bakar & Ramirez-Iniguez, Roberto & Abu-Bakar, Siti Hawa & Mohd Yasin, Siti Hajar & McMeekin, Scott G. & Stewart, Brian G., 2012. "Solar photovoltaic in Malaysia: The way forward," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5232-5244.
    • Handle: RePEc:eee:rensus:v:16:y:2012:i:7:p:5232-5244
    DOI: 10.1016/j.rser.2012.05.002
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    4. Basri, Nor Afifah & Ramli, Ahmad Termizi & Aliyu, Abubakar Sadiq, 2015. "Malaysia energy strategy towards sustainability: A panoramic overview of the benefits and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1094-1105.
    5. Islam, Md Tasbirul & Huda, Nazmul & Saidur, R., 2019. "Current energy mix and techno-economic analysis of concentrating solar power (CSP) technologies in Malaysia," Renewable Energy, Elsevier, vol. 140(C), pages 789-806.
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    7. Graf, Holger & Kalthaus, Martin, 2018. "International research networks: Determinants of country embeddedness," Research Policy, Elsevier, vol. 47(7), pages 1198-1214.
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    9. Abu-Bakar, Siti Hawa & Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Mallick, Tapas Kumar & McLennan, Campbell & Abdul Rahim, Ruzairi, 2014. "Financial analysis on the proposed renewable heat incentive for residential houses in the United Kingdom: A case study on the solar thermal system," Energy Policy, Elsevier, vol. 65(C), pages 552-561.
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    11. Kaffashi, Sara & Yacob, Mohd Rusli & Clark, Maynard S. & Radam, Alias & Mamat, Mohd Farid, 2015. "Exploring visitors' willingness to pay to generate revenues for managing the National Elephant Conservation Center in Malaysia," Forest Policy and Economics, Elsevier, vol. 56(C), pages 9-19.
    12. Ismail, Abdul Muhaimin & Ramirez-Iniguez, Roberto & Asif, Muhammad & Munir, Abu Bakar & Muhammad-Sukki, Firdaus, 2015. "Progress of solar photovoltaic in ASEAN countries: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 399-412.
    13. Muhammad-Sukki, Firdaus & Abu-Bakar, Siti Hawa & Ramirez-Iniguez, Roberto & McMeekin, Scott G. & Stewart, Brian G. & Sarmah, Nabin & Mallick, Tapas Kumar & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & , 2014. "Mirror symmetrical dielectric totally internally reflecting concentrator for building integrated photovoltaic systems," Applied Energy, Elsevier, vol. 113(C), pages 32-40.
    14. Lau, Lin-Sea & Choong, Yuen-Onn & Wei, Chooi-Yi & Seow, Ai-Na & Choong, Chee-Keong & Senadjki, Abdelhak & Ching, Suet-Ling, 2020. "Investigating nonusers’ behavioural intention towards solar photovoltaic technology in Malaysia: The role of knowledge transmission and price value," Energy Policy, Elsevier, vol. 144(C).
    15. Naseer T. Alwan & Sergey E. Shcheklein & Obed Majeed Ali & Milia H. Majeed & Ephraim Bonah Agyekum, 2021. "Experimental and Theoretical Investigations of a Modified Single-Slope Solar Still with an External Solar Water Heater," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    16. Sinha, Avik & Shahbaz, Muhammad & Balsalobre, Daniel, 2017. "Exploring the Relationship between Energy Usage Segregation and Environmental Degradation in N-11 Countries," MPRA Paper 81212, University Library of Munich, Germany, revised 07 Sep 2017.
    17. Abu-Bakar, Siti Hawa & Muhammad-Sukki, Firdaus & Freier, Daria & Ramirez-Iniguez, Roberto & Mallick, Tapas Kumar & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Abubakar Mas’ud, Abdullahi & Md Yunus, No, 2015. "Performance analysis of a novel rotationally asymmetrical compound parabolic concentrator," Applied Energy, Elsevier, vol. 154(C), pages 221-231.
    18. Hernández-Moro, J. & Martínez-Duart, J.M., 2013. "Analytical model for solar PV and CSP electricity costs: Present LCOE values and their future evolution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 119-132.
    19. Aliyu, Abubakar Sadiq & Dada, Joseph O. & Adam, Ibrahim Khalil, 2015. "Current status and future prospects of renewable energy in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 336-346.

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