Electricity is an essential energy and is getting increasingly costlier, fortunately we are now allowed to install photovoltaic or PV on our rooftops to reduce this energy cost.
The cost of PV installation has recently fallen considerably, resulted in the levelised cost of PV electricity (LCOE) falling to about RM0.15/KWh. This is relatively cheaper than the prevailing utility tariff at which we are currently buying at RM0.509/KWh.
Besides the cost saving, PV generation is green and produces zero CO2. This is important so that we could also contribute to play our part in mitigating the dire effects of Climate Change.
As we know, PV is powered by the Sun and burns no fuel, indeed it eliminates the cost and other challenges like the transportation of conventional fuels. This indigenous attribute of the PV is of great advantage in hedging against the future price hikes of energy. PV also contributes to the energy security for our national economy.
Furthermore, the Internal Rate of Return (IRR) which PV system produces is impressively at 28.1%. Such investment benchmark for PV energy projects results in exponential growth for the PV installations.
Since the life-span of the PV modules is 25 years, the long-term positive cash flow accumulated throughout these years by the PV energy generation helps to alleviate the bottom lines of the commercial & industry consumers.
The initial investment of the project shall be recovered at the 4th year as ROI, since the government provides investment incentives in the form of ITA (Investment Tax Allowance) and Capital Allowance.