Malaysia’s abundant solar energy potential remains underutilized in the residential sector, primarily due to the high upfront cost of photovoltaic (PV) systems and limited public awareness of renewable energy and carbon footprint implications. Meanwhile, the utility company continues to rely on non-renewable sources, further slowing the shift toward sustainability. This study looks at the technical and financial viability of installing solar PV on modern double-story terrace houses, for homes with an average electricity bill of RM500 per month. Four system capacities: 3.4 kWp, 6.2 kWp, 9.0 kWp, and 11.3 kWp were simulated using PVsyst software, under both the Net Energy Metering (NEM 3.0) solar home subscriptions and outright purchases model. The findings show that the best option for outright purchase is the 9.0 kWp system, producing 11,769 kWh per year. With an NPV of RM10,238.65 and a discounted payback period of 7.7 years, this system proves financially beneficial over 21 years. Besides economic benefits, the 9.0 kWp system also supports environmental sustainability, reducing CO₂ emissions by 179.31 tonnes. While solar subscription models offer shorter payback periods, they tend to be less favorable financially in the long term due to NEM 3.0 constraints. This study underscores the importance of optimal system sizing and financing strategies to enhance adoption, and recommends supportive policy reforms and targeted awareness campaigns to drive Malaysia’s transition toward a low-carbon future.
Hanafiah et al. (Thu,) studied this question.