Cost benefits study of solar photovoltaic implementation for residential areas in Malaysia

Abstract

Solar energy is one of the source of renewable energy and it produces from the sun. Malaysia has a great potential to apply solar photovoltaic system due to the strategic geographical location and received huge amount of solar radiation, average yearly 1400 - 1900 kWh/m2. Generation of electricity in Malaysia is largely dependent on the produced fossil fuels, which mainly from natural gas and coal. This generated electricity constitute of 90% of the overall generation and 21% of the electricity generated is consumed by the residential sector. The aim of this study is to identify the potentials and benefits of the solar photovoltaic system applied in residential. In order to achieve these objectives, the questionnaire survey and interview have been conducted to gain as the primary data. The developers at the management and technical staff level such as project managers, architects and as well as engineers were approached in order to identify potentials and advantages of photovoltaic system. Result obtained from questionnaire survey were tabulated and then analyzed by using SPSS 15.0 tools. Average index value applied to justify the significant result. The study resulted in 9 elements considered as the potentials of solar photovoltaic application. Besides that, 30 elements were found as the advantages and benefits of the solar photovoltaic implementation for residential in Malaysia. The cost benefit analysis found that is relationship between payback period and return on investment