The Go Green Dilemma

In Malaysia, there’s so much talk about going green and use of renewable energy (RE) more to meet our electricity and power needs – be it for households, business offices and factories. The most common RE is solar. Other popular RE are wind, biogas, biomass and thermal, hydro – mostly used in large scale operations like plantation and factories.

Source: http://www.seda.gov.my/about-seda/re-programmes/

Here I’d like to discuss some about solar as it covers residential – the people. Further search on Google, there are actually a lot of solar companies available in Malaysia – more than 20! I listed some down here:

  • ERS
  • Pekat Teknologi
  • Plus Solar
  • Solar Vest
  • Ditrolic Solar
  • Sols Energy
  • Ray Go Solar
  • Solar System Malaysia
  • MAQO Group
  • Simpli Solar

Some of these companies listed above provide only for business buildings and factories, some cover residential as well. There has been slow take up rate from the residential customers, although many claims that the solar photovoltaic (PV) panel is getting cheaper.

“Solar technology has matured and costs have become more competitive. Solar PV panel prices has fell 80% since 2009,” she said, adding that this is also one reason quota for solar is no longer offered under the fit-in-tariff (FiT) mechanism.

– YB Yeo Bee Yin, Minister MESTECC, Malaysia

Upon checking, on average the price of outright purchase of the PV panel is around RM 25,000 (USD 1 = RM 4.3) for residential houses. For factories it is more because the Kw (kilowatt) will be higher.

There’s also some incentives under the RE incentives provided by the government. However the incentives will be claimed by the solar providers because they will help the customers with FREE roof suitability and installation if suitable (roof angle and access issues).

There are companies offer solar leasing package, therefore customers do not need ot pay any single cent throughout period (depend on the providers). This package is a standard leased agreement called SARE (Supply Agreement for Renewable Energy). Typically the lease will be for 10-20 years. The best part in this period, customers do not need to pay any money, downpayment or installment to enjoy the benefits. This include maintenance and warranty of the system altogether.

Source: http://clipart-library.com/download-solar-panel-gif.html

Will this reduce your electricity bill? According to most solar providers, your electricity will go lower by 5-25% on your consumption before solar. In other words, this lower bill isn’t on monthly basis once you used solar. You get to save the planet along the way! Some providers claim you can save RM 200/month for 21 years (that will add up to RM 48,000). Again, I think this kind of sales-pitch needs clear evidence or stated in the contract; because once you signed, ehem it will be very difficult to get out; perhaps? 😉

Additionally, let say, you have great roof for sun radiation and you generated more solar than you need or use, you can trade (sell) this extra power back to the provider and earn some income. This package is called Net Energy Metering (NEM) scheme. In NEM scheme as explained by the Minister of MESTECC, YB Yeo, there’ll be no price difference in buy and purchase of solar tariffs.

Source: https://www.simplisolar.com/site/resources/what-is-net-energy-metering-nem/

However, as a customer I still have concerns with the design of the contract. Especially it is about getting into contract for 10-20 years, it is actually very long. As it is, car hire purchase is long enough (7-9 years). My challenge is I couldn’t find the exact figure of the fine details to these questions:

  1. What if the solar installed didn’t bring much value in savings for me? Can I change back to normal power supply?
  2. How much supply coming from solar do I need as residential customer? Is it 100% or 80%? How much do I need to pay for the additional cost difference for normal power supply?
  3. What if the solar provider close down? What is my risk?
  4. What if I wanted to sell the house? Will my solar agreement stuck there to new tenant? Or I can take it with me to my new house?
  5. Since the leasing is with Third Part Operator (TPO), what is the cost of change of tenancy (COT)?
  6. How much do I need to pay to get out of the contract?
  7. Does this package have insurance covering the system?
  8. Is there any fee to become NEM provider? Because supply and sell back the power is two different component, am I right to think this way?
  9. What if the person who sign the contract passed away? And I have to sell the property and get out of the solar contract, how do I do this?
  10. Over 10-20 years in the contract, the PV panel price is going down lower and becoming more efficient, would the customer get upgrade included in the package or stuck with the old technology?

“Consumers want to go green, but above all we want to save money.”

– Consumers
Advertisements