Solar Panel Cost

“How much will a solar system cost” would probably be the first question that comes to mind when planning to install solar PVs. The question might not be answered without doing a little research work, though. Solar panel cost vary, depending on the type and the size of the solar system you’re going to purchase as well as your location.

The following are guides that you may use to be able to compute and have an estimate of how much installing solar PV could cost:

Size of your Solar System

Knowing the size of solar system you need for your home is one way to determine, or at least estimate the cost of a Solar PV. It may sound a little complicated, but with the following steps, you will be able to estimate the size of solar system your home needs. Then you can now calculate how much it would cost you to install the solar system:

1st Step: Check on your electricity bill your average electricity usage per year (kWh/year).

where:

kWh/year is the average kWh of electricity your house use in a typical year

Example: Your monthly electricity bill is RM100/month, therefore, you might be using 1000 kWh/month.

2nd Step: Get the number of hours per day the sun shines in your location.

3rd Step: Decide the percentage of your total electricity bill you wanted to come from the sun.

note: If you do you have a big budget, you might want to say 80-100%, but you have to remember that you’re still on-grid, therefore, you”ll most likely still be using even just a bit of utility’s electricity.

Now if you do have a limited budget, you might want to start with 50%, and talk to your installer about leaving a space for later expansion.

4th Step: You can get an estimate of the cost by using formula below.

where:

Array Size in kW = (your average kWh/year) / (365 days/year) / (solar hours/day) * (percentage you wanted to be covered) / (75% constant efficiency)

example: Your electricity bill is usually RM100/mo and use about 1000kW/month. You get about 5 hours of sunlight per day and you wanted to cover 80% of your bill.

calculation: (12,000kWh/year) / (365 days/year) / (5 kWh/day) * (75%) / (75%) = 6.58kW Array

**Expect your AC power to be about 75% of the DC power size due to efficiency losses such as dust, wiring, irradiance, and temperature, thus, 75% constant efficiency is always included in the calculation.

5th Step: Get an estimate of installing a solar PV with the solar array size that you have using a Home Solar Cost Calculator.

Cost for Solar Panel Installation

Malaysian homeowners or property owners now have the chance to generate electricity and actually get paid for it by TNB. This is possible under the Malaysia FiT System, which aims to promote the development of Renewable Energy. While there are various choices of RE sources, Solar PV seems to be the most feasible option for most residents in Malaysia. But one question that quickly comes to mind if you intend to put up solar panels in your home would probably be the cost. How much would it cost you to install solar panel? Cost for Solar Panel Installation The above image is a sample set of home solar PV which is expected to cost around RM60,000. It may sound a little expensive, but considering the long-term profit Malaysia FiT offers, return of investment surely looks favorable. Based on studies, a 2-storey residential house with 4kWp Solar PV System (Roof Integrated) installed, which costs RM50,000 in 2013, is expected to have 12.24% rate of ROI. That only takes a little over 7 years for the payback of the system assuming that the system yields 1250kWh/kWp/annum totalling 5,000kWh/annum (total system yield). If you’ll manually calculate it, it’ll goes out as: RM1.13 + 0.24 = RM1.37/kWh which gives a revenue of RM6,800 per annum
where:
  • Installed capacity up to and including 4kWp with a qualified FiT Rate of RM1.13;
  • Additional for installation in buildings/building structures with a qualified FiT Rate of +0.2392 (computation above is rounded off to 0.24).

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The exact cost for solar panel installation, though, will still depend on various variables that greatly affects the price. If your home is off-grid, costs may be different as you will need to have additional PV System Components such storage batteries, charge controller, and monitors. You will then need to know how much energy your home will be using and the number of batteries you will need for storage. You’ll also most likely have a backup generator to help maintain your battery life, thus, protecting a part of your investment. If your home is on-grid, before you can get an estimate of the cost, you first need to know your objectives in installing solar panels. If you’re searching for self-reliance during a grid outage, installation might cost you a little more for the batteries and charge controller that are sized according to the days you’ll need before grid energy becomes available again. Now, if you’re aiming for a zero-energy residential home where your solar PV offsets your energy consumption on a yearly basis, then you might want to look into your electricity bill and get your average kWh usage per day to get the size of solar panel that you need. A lot of people think that the size of solar panel and its cost depends on the size of their homes, when in fact, it’s not. The size of your solar panel and its costs actually depend on how much your average electricity usage is, how much electricity you wanted to offset, and the solar resource in your location. With all these in mind, you will be able to get an estimate of how much would it cost you to install solar PVs.

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