What is Solar ROI and How Does The Solar Panel Payback Period Work?
Is it worth investing in solar panels?
Many of our customers often ask this particular question in hopes of learning more about the payback period.
So, what is the payback period?
The solar payback period is also known as the solar system return of investment (Solar ROI). It is the time taken to break even on your initial investment.
The average payback period for solar panel is estimated to be 4 to 14 years, thanks to the Government’s policies that have been implemented in Malaysia.
Note: This is a fairly broad range because many factors will influence the years it can take to pay off your panels and the monthly savings you can expect.
However, the solar ROI is dependent on a number of factors which includes:-
1) Average Monthly TNB Bill
Installing solar has a relatively short payback period in markets with high utility rates. The amount of electricity consumed determines the size of the solar system and the amount of electricity offset by panels.
The higher the electricity bills, the bigger the system size and the shorter the payback period will be.
2) Gross Cost of Solar PV Installation
The size of the system and equipment required are the factors of your gross cost when installing solar.
3) Estimated Electricity Generation
Solar installers try to provide you with a system that matches your electricity consumption and practical constraints.
As we all are aware, Malaysia is well known for its sunny weather. Do not be fret as even the rainy season wouldn’t hurt your generation capacity with the help of NEM!
In terms of improving the solar ROI, the Government has introduced the concept of Net Energy Metering (NEM) to provide more opportunities to electricity consumers.
Solar is a low-risk investment that offers lower monthly bills, a smaller carbon footprint, and decades of renewable electricity that makes solar a smarter option for all of us!
If you are still hesitating about investing in solar panels and solar ROI, get your free on-site assessment here!