Feed-In Tariff for solar PV in Malaysia: Financial analysis and public perspective

Malaysia is joining the global race for solar photovoltaics (PVs), where the Feed-In Tariff (FIT) mechanism has been introduced recently. This paper presents, first, a chronological overview of solar PV in Malaysia until the present time. Next, a general concept of the FIT Malaysia is explained and a financial analysis is carried out, comparing the return on investment of installing solar PV in different locations in Malaysia, as well as in other countries. The paper also shows a preliminary survey conducted to Malaysians to see their awareness on the national initiatives related to green technologies and their likelihood to invest in the FIT scheme. The financial analysis indicates that installation of PV in Malaysia could potentially generate good investment return during the duration of a contract. The survey on the other hand suggests that Malaysians are not aware of the national initiatives and are not willing to invest in solar PV installation.