Jolted by the spiking electricity bill when his family had to work from home during the pandemic, Goh Han Lee looked for a solution that could lower the bill without needing to cut back on electrical essentials.
“During the movement control order (MCO), my electricity bill went up as high as RM700 to RM800 a month,” said the lawyer, who lives with his family of five and three cats.
“Given my electricity bill, which had skyrocketed during MCO, and knowing well that the cost of electricity will only go up in the future, I thought I’d give solar a try,” he said.
Since 2016, the government has implemented the Net Energy Metering (NEM) Scheme, which allows people to offset their electricity bills with energy produced from their solar photovoltaic (PV) installations.
It works by allowing a house to consume solar energy it generates and export the excess amount to the national grid.
When there’s no solar energy available – for instance, at night or during a heavy cloud cover – the house will draw power from the national grid.
At the end of the month, the amount payable to national electricity provider Tenaga Nasional Bhd (TNB) will be offset by the excess solar energy the house had contributed to the grid.
The credit generated from excess electricity can be used to offset bills for up to 12 months down the road, though the credit cannot be exchanged for money.
In Goh’s case, he has yet to accumulate “energy credit” but the use of solar power has brought the bill down to a more manageable RM200.
“Before solar, we were more restrained with the use of electricity.
“During the day, we would switch on one or two airconds and huddle in the same room, but now we are less worried about the cost,” he said.
Since installing solar panels, he has received a lot of queries from curious neighbours whom he has directed to the Sustainable Energy Development Authority (Seda) Malaysia, which is the implementing agency for the scheme.
“I would definitely recommend solar power if you are looking for something to lower your electricity bill,” he said.
Policy for the people
Seda CEO Datuk Hamzah Hussin pointed out that unlike past iterations of NEM – version 1.0 was launched in 2016 and 2.0 in 2019 – version 3.0 is more people centric, as it has a quota for homeowners.
Previously, allocations were offered on a first come, first served basis.
However, during the implementation of NEM 2.0, the take-up by commercial and industrial players was significantly higher than residential users who only claimed 5% of the allocation.
“For NEM3.0, the government has segmented the quota to three different programmes to ensure that it will be fairly distributed,” he said.
The NEM Rakyat programme allocates 100mW for residential homes, NEM GoMEn offers 100mW to ministries and government facilities, and Net Offset Virtual Aggregation (Nova) makes available 300mW to commercial and industrial players.
As the domestic sector is one of the key contributors to the growth of renewable energy (RE), he hoped that NEM Rakyat will prove to be attractive to homeowners.
He added that solar panel installations have become more affordable over the years and Seda’s website lists registered PV service providers, making it easier to find trustworthy firms.
The International Renewable Energy Agency (Irena) reported that solar PV had dropped in price by 80% since 2009, projecting a further 59% cost reduction for energy generated by solar PV by 2025.
Also, science publication Our World In Data similarly reported that the price of building solar plants had dropped tremendously since 2009, from US$359 (RM1,480) per MWh to US$40 (RM165) per MWh in 2019.
This made it cheaper to build solar plants than fossil fuel plants such as those powered by coal, which only dropped in price from US$111 (RM457.82) per MWh to US$109 (RM449) per MWh in the same period.
Clean energy
Retired mechanical engineer Dahari Ariffin, who was at first not interested in solar panels due to the high cost, changed his mind as the tech became more affordable.
And adopting the technology has made the 65-year-old even more mindful about energy use.
“I am more concerned about the bill now because if it’s higher, I feel guilty as I have invested so much,” he said.
He had installed 13 panels which generate an average of 4kWh of electricity. This helped cut his electricity bill of about RM600 to RM700 to half.
Though he lived in a bungalow, the design of the roof limited the size of the panels, as they needed to be installed at the right spot to maximise benefit.
“I am keeping track of how much power I can sell to the national grid to offset my bill.
“I try as much as possible to use only the power that is generated from the panels,” he said, adding that his family helps by switching off unnecessary appliances.
Chemical engineer Rahman Hariri is of the same opinion – while his main reason for turning to solar power is economics, he also sees it as a way to reduce his family’s carbon footprint.
“We now have a target and if we could achieve it, I would be elated.
“In other words, our lifestyles have changed – we live comfortably without worrying about the bill, but we are also more conscious of our energy usage,” said the 58-year old, who lives with three generations of family members under one roof.
Since adopting solar power, his bill has dropped from about RM950 to RM1,150, to RM350.
“Knowing how much solar electricity is being generated helps a little in governing my behaviour,” he said, likening it to a game where he tries to “beat” the previous month’s bill.
Not a light matter
One of the concerns many homeowners have when installing solar panels is the strain they will put on the roof.
Goh, who moved into a two-storey terrace house back in 2005, was concerned that the installation may cause leakages as it involved punching brackets through the roof.
“But I’m happy to report that there are no leaks, as the company had installed the panels properly and blocked off any holes or gaps with silicone sealant,” he said.
Rahman was also worried about the installation process as he felt that any resulting problems would be complicated to fix.
Before making the leap, he researched the offer from the installer, including the price, cost of maintenance and if the inverter technology will be more efficient and reliable.
The installer – Sols Energy Sdn Bhd – had also recommended that he install a smaller system, 12.5kWp instead of 15kWp, after its site study found that his lower roof would be in the shade at certain hours of the day.
Sols Energy chief sales officer Jaran Walia said it generally takes about two to three months to complete the entire process, from engaging the client to the installation of the solar panels.
He explained that the company will explain how solar and NEM work, study the site using a drone or map, which helps determine the cost and configuration that is ideal for the house.
If the customer agrees to proceed, the installer will file an application with Seda, which in turn will engage TNB to vet the paperwork.
The paperwork generally takes one to two weeks to process, and installation takes a day for systems smaller than 8kWp and no more than two days for residential units larger than 10kWp.
Jaran said installations have been a little slower due to the Covid-19 pandemic, as it’s vital to comply with standard operating procedures such as testing installers regularly for the coronavirus.
The MCO also called for more paperwork, especially when serving clients outside of the Klang Valley, he added.
Cost of change
Jaran noticed that the pandemic also influenced the type of customers approaching the company.
Typically, those that installed solar panels were older and retired homeowners who had cash to spare and looked forward to long-term savings.
“Now, we’re seeing younger families adopting solar power to lower their bills because they are consuming more electricity due to working and studying from home.
“The availability of more financing options has also made it easier for more people to try out solar power,” he said.
To make it easier for homeowners to purchase solar, Seda updates banks on the developments of the NEM programmes so more financing packages are offered.
BuySolar, an online marketplace comprising installers and banks, offers customers three options: outright purchase with debit or credit card, an interest-free instalment plan for up to three years, or a personal loan.
It also helps, Jaran said, that the price of the system have dropped by about half of what they used to cost four to five years ago to about RM20,000.
Money saved from electricity bills, he said, will allow most users to recover the cost of installation within five to eight years.
“One preconceived notion is that if you invest in a big ticket item, you should expect a big return immediately, but more people are now willing to reap the benefit over time,” he added.
Hamzah said the enhanced NEM programmes have also created new business opportunities for registered PV investors (RPVIs).
RPVIs install the solar panels at no cost to homeowners who are then given two options – Solar Power Purchase Agreement (PPA) or Solar Leasing.
Homeowners who pick PPA will have to pay for the electricity generated by the solar panels, which will generally be sold at a lower rate than the standard tariff rate.
Those who choose Solar Leasing have to pay a fixed amount monthly in return for the use of the system which will be owned by them after the lease ends.
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