An evaluation of the installation of solar photovoltaic in residential houses in Malaysia: Past, present, and future

This paper examines solar energy development in Malaysia, particularly in relation to the installation of solar Photovoltaic (PV) in residential houses. It analyzes the past activities related to solar energy in Malaysia, in terms of research and developments (R&Ds), the implementations used as well as the national policies for the past 20 years which have pushed the installation of PV in the country. The Feed-In Tariff (FiT) scheme is discussed, showing comparative cost-benefit analysis between the PV installation in houses in the United Kingdom (UK) and Malaysia, and with other investment schemes available in Malaysia. To investigate the awareness of renewable energy policies and incentives, a preliminary survey of the public opinion in Malaysia has been carried out, and an evaluation of public willingness to invest in the FiT scheme by installing the PV on their houses is presented. The cost-benefit analysis shows that the proposed FiT programme is capable of generating good return on investment as compared to the one in the UK, but the return is lower than other investment tools. The survey suggests that most Malaysians are unaware of the government’s incentives and policies towards renewable energies, and are not willing to invest in the FiT scheme.

► Past activities related to solar energy is evaluated and FIT scheme is discussed.
► Financial analysis is presented; public perspective is evaluated.
► The FIT scheme generates higher return for PV installation in Malaysia than in the UK.
► The scheme, however, produces lower return than most investment schemes.
► Malaysians’ awareness levels are low and are not willing to invest in the FIT scheme.