Using a 4kW Solar PV System as an example, you can compute your estimated earning per month through the following computation:
4kWp Solar PV = RM60,000 (CAPEX or capital expenditure)
400kWh (yield per month) x 1.74 (FiT rate for a 4kWp Solar PV) = RM696/month (which you will receive from Tenaga Nasional Berhad)
= RM6,000 (your investment) + [RM456(per month) x 15 years]
Investment = 10% DP + 90% bank loan at 6% interest for 15 years
In this computation, it is clear that your RM6,000 as an initial investment can earn up to RM240/month (the amount you’ll receive from TNB per month – your monthly payment for the system) in 15-year period and the full amount of RM696 (from TNB) for the next 6 years.
The above sample of computation with RM60,000 as the initial investment, if self-funded, will clearly get RM696/month, which is RM8,352 per year. If this is what you’re going to earn per month for the next 21 years, then that will reflect RM175,392, which is equal to returns on investment at approximately 14% per year.