Soft loan for domestic installation of solar photovoltaic in Malaysia: is it the best option?

Firdaus Muhammad-Sukki, Abu Bakar Munir, Roberto Ramirez-Iniguez, Siti Hawa Abu-Bakar, Siti Hajar Mohd Yasin, Scott G. McMeekin, Brian G. Stewart, Khairil Anuar

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

3 Citations (Scopus)


Malaysia has passed the Renewable Energy Act in April 2011, in which the Feed-In Tariff (FiT) mechanism is introduced. The FiT gives much emphasis on the solar photovoltaic (PV). This paper presents, first, an overview of solar PV in Malaysia until the present time. Next, a general concept of the FIT Malaysia is explained and finally the loan financing option for solar PV is presented. It also analyses the impact of the proposed interest rate to household consumers in Malaysia, in terms of the total profit, the net present value and the internal rate of return. It is found that the FiT scheme could potentially help in increasing renewable energy penetration, particularly for solar PV. To provide upfront capital for domestic solar PV installation, the soft loan facility from banking institutions is a feasible source if the interest rate is 5% or less.

Original languageEnglish
Title of host publication2012 IEEE Business, Engineering and Industrial Applications Colloquium (BEIAC)
Place of PublicationPiscataway, NJ
Number of pages6
ISBN (Print)9781467304269
Publication statusPublished - 30 Apr 2012
Externally publishedYes
Event2012 IEEE Business, Engineering and Industrial Applications Colloquium, BEIAC 2012 - Kuala Lumpur, Malaysia
Duration: 7 Apr 20128 Apr 2012


Conference2012 IEEE Business, Engineering and Industrial Applications Colloquium, BEIAC 2012
CityKuala Lumpur


  • feed-in tariff
  • interest rate
  • internal rate of return
  • net present value
  • solar photovoltaic
  • total profit

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