Malaysia’s solar power to get cheaper by 2017

Malaysia’s solar energy use is likely to achieve grid parity by 2017, according to Malaysia’s Energy Ministry.

In a report, Malaysia’s Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui explained that grid parity would occur when alternative means of generating electricity, such as solar-powered electricity, reached cost parity with conventional fossil fuel-based electricity provided by the utility companies.

Installation of photovoltaic panels was still costly in Malaysia while the electricity offered by utility companies, Tenaga Nasional Bhd, Sabah Electricity Sdn Bhd and Sarawak Electricity Supply Corp, was still lower and cheaper.

The introduction of feed-in-tariff for renewable energy to enable users to sell excess power to the power grid next year would encourage more installation of PV panels in the country, the report said.

With FIT, users who install PV panels in their house will get better electricity rate and the return on investment would take 12 to 15 years.