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Net present value and payback period for building integrated photovoltaic projects in Malaysia

Photovoltaic systems (PV) offer a clean, alternative energy source that is very suitable in the Malaysian climate, and consistent with the peak production and high demand in power in Malaysia. However, the application of PV systems in Malaysia is still low. The objective of this research is to deter...

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Main Authors: Ong, Tze San, Chun, Hau Thum
Format: Article
Published: Human Resource Management Academic Research Society 2013
Online Access:http://psasir.upm.edu.my/id/eprint/28266/
http://www.hrmars.com/admin/pics/1576.pdf
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spelling my.upm.eprints.282662015-07-24T13:36:16Z http://psasir.upm.edu.my/id/eprint/28266/ Net present value and payback period for building integrated photovoltaic projects in Malaysia Ong, Tze San Chun, Hau Thum Photovoltaic systems (PV) offer a clean, alternative energy source that is very suitable in the Malaysian climate, and consistent with the peak production and high demand in power in Malaysia. However, the application of PV systems in Malaysia is still low. The objective of this research is to determine the total cost, price/kWp system, net present value (NPV), and payback period for PV project in Malaysia. All seven projects were selected and used for the analysis and named as Project 1 to 7. The findings from this research indicate that all seven projects show a negative NPV value and payback period is more than thirty eight years. Four projects even get payback period of more than fifty years. However, an interesting projection on the price reduction shows that a positive NPV is achievable if the price/kWp system reduced to RM11,000 and RM4,000 for government subsidized and non- subsidized projects respectively. The estimation on payback period is between four to eight years with the price reduction of 85% to 50% respectively from the current market price. Global warming, climate change, environment pollution and demand for energy represent critically issues with a wide array of potential environmental disasters affecting people health and safety. These issues are opening up new opportunities for utilization of renewable energy resources like solar photovoltaic system (PV). PV system has been widely applied in many countries such as German, Spain, Japan, US, UK and Australia but interestingly the application is rather low in Malaysia. Al though Malaysia is a tropical country and located in the equator with sunlight all year round, the development of PV is still in small scale and at the beginning stage. This study is designed to find out the capital costs needed to install a PV system in Malaysia, and serve as a guideline for public when considering a PV system. Human Resource Management Academic Research Society 2013-02 Article PeerReviewed Ong, Tze San and Chun, Hau Thum (2013) Net present value and payback period for building integrated photovoltaic projects in Malaysia. International Journal of Academic Research in Business and Social Sciences, 3 (2). pp. 153-171. ISSN 2222-6990 http://www.hrmars.com/admin/pics/1576.pdf
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description Photovoltaic systems (PV) offer a clean, alternative energy source that is very suitable in the Malaysian climate, and consistent with the peak production and high demand in power in Malaysia. However, the application of PV systems in Malaysia is still low. The objective of this research is to determine the total cost, price/kWp system, net present value (NPV), and payback period for PV project in Malaysia. All seven projects were selected and used for the analysis and named as Project 1 to 7. The findings from this research indicate that all seven projects show a negative NPV value and payback period is more than thirty eight years. Four projects even get payback period of more than fifty years. However, an interesting projection on the price reduction shows that a positive NPV is achievable if the price/kWp system reduced to RM11,000 and RM4,000 for government subsidized and non- subsidized projects respectively. The estimation on payback period is between four to eight years with the price reduction of 85% to 50% respectively from the current market price. Global warming, climate change, environment pollution and demand for energy represent critically issues with a wide array of potential environmental disasters affecting people health and safety. These issues are opening up new opportunities for utilization of renewable energy resources like solar photovoltaic system (PV). PV system has been widely applied in many countries such as German, Spain, Japan, US, UK and Australia but interestingly the application is rather low in Malaysia. Al though Malaysia is a tropical country and located in the equator with sunlight all year round, the development of PV is still in small scale and at the beginning stage. This study is designed to find out the capital costs needed to install a PV system in Malaysia, and serve as a guideline for public when considering a PV system.
format Article
author Ong, Tze San
Chun, Hau Thum
spellingShingle Ong, Tze San
Chun, Hau Thum
Net present value and payback period for building integrated photovoltaic projects in Malaysia
author_facet Ong, Tze San
Chun, Hau Thum
author_sort Ong, Tze San
title Net present value and payback period for building integrated photovoltaic projects in Malaysia
title_short Net present value and payback period for building integrated photovoltaic projects in Malaysia
title_full Net present value and payback period for building integrated photovoltaic projects in Malaysia
title_fullStr Net present value and payback period for building integrated photovoltaic projects in Malaysia
title_full_unstemmed Net present value and payback period for building integrated photovoltaic projects in Malaysia
title_sort net present value and payback period for building integrated photovoltaic projects in malaysia
publisher Human Resource Management Academic Research Society
publishDate 2013
url http://psasir.upm.edu.my/id/eprint/28266/
http://www.hrmars.com/admin/pics/1576.pdf
_version_ 1643829414635503616
score 13.211869

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