Are solar panels worthwhile? We did the maths you don’t have to!
Are solar panels worthwhile? The answer is, indeed, yes!
Solar panels are becoming more common in Malaysia. People often see it as an investment and a way to reduce their electricity bill. Although their popularity seems to be increasing, there are some who doubt this technology and wondering if solar panels worthwhile.
The purchase of solar panels is a home upgrade that actually pays for itself after a certain amount of time. A better understanding of how solar payback works will help more people decide if solar panels worthwhile. It will also help customers make informed purchasing decisions.
Are Solar Panels Worthwhile? Let Solar Panel Pays For Itself
The most frequently asked question is: “How much does it cost to install solar panels?”
The cost of solar panels themselves depends on the number of panels, while the number of solar panels depends on your monthly electricity generation.
When you have decided to go solar, your electricity bill will be decreased (or completely eliminated) because you are producing your own power rather than purchasing it from Tenaga Nasional Berhad (TNB), which saves you money.
To find out if solar panels worthwhile, all you have to do is compare the lifetime cost of your TNB bill against the lifetime cost of going solar. In order to get more accurate calculations, we will use a 25-year timeframe to measure “lifetime” ownership because that’s the standard length of a solar panel warranty.
Let’s begin the calculations!
Know your average monthly TNB bill
You can easily find it on your monthly TNB bill, or you can log on to the myTNB portal to check! Easy peasy!
To get a more accurate rate on your TNB bill, take the average bill for at least three months. Also, ask yourself if you will consume more electricity in the future so that you can roughly know how much the bill will increase as time goes by.
Example: an average of RM450 TNB bill
Know your lifetime cost of electricity bill
As we choose to use a 25-year timeframe to measure a solar panel’s lifetime, we multiply the number by 12 (months) and 25 (years) to determine your TNB bill’s lifetime cost.
Example: RM450 x 12 x 25 = RM135,000
Once you have gotten your number, it is the cost of buying power from the TNB over a period of 25 years. In the example above, RM135,000 is the amount that needs to be paid for a TNB bill in 25 years.
As previously stated, the cost of solar panels is primarily determined by the average monthly TNB bill of a landed house. Other than that, it also depends on the size of your house’s roof. Hence, the cost of solar panels proposed here is purely based on estimation.
Consider the preceding example: the maximum cost of solar panels for a monthly RM450 TNB bill is approximately RM45,000. Still, your roof size and how much you are planning to save for your TNB bill play a huge role in deciding how many panels to get.
Estimate return on investment (ROI) for your solar panels installation
Here comes the big payoff. It answers the question, “Are solar panels worthwhile?”
To determine if solar panels worthwhile as an investment, you must first calculate the return on investment of a solar panel installation. How?
Take the lifetime cost of your electricity bill and subtract the lifetime cost of solar panels. Again, we take the example above to do the math.
Example: RM135,000 – RM45,000 = RM90,000
In this scenario, going solar would save you an estimated RM90,000 over a 25-year period! By installing them, you can easily reach a break-even point (payback) after 5-8 years. After you break even, you can enjoy cheaper TNB bills or even free electricity (depending on your monthly consumption). Read here to know more about solar panels’ payback period.
Fortunately, the government implemented NEM 3.0 for homeowners. People can save up to 90% every month in the long run. Who wouldn’t want that deal? While saving money, we also get to practice an eco-friendly lifestyle!
Conclusion
After reading all the calculations and explanation, are solar panels worthwhile now?
From the math that we have done above, it is proven that solar panels are worth installing! However, to get the actual number and price, you are highly advised to contact our professional solution consultant. Don’t be shy, contact us now!
