What determines your solar return of investment over time?
While there are other geographical factors (such as location and peak sun hours) that influence your solar return of investment, these two factors below are universally true for all solar panel investors in terms of determining your solar return of investment.
1. The initial cost of your solar panel system
Generally, your solar panel system will consist of panels, inverter, cable, and mounting structures.
If your initial cost for your solar panel system is lower, it is generally easier to generate positive ROI in a much shorter period too.
2. The availability of tax incentives or grants
While we’re at the point of costs, it is highly advisable to take advantage of government grants and incentives when you’re planning to invest in solar panel systems.
For example, a good way of leveraging your PV solar panel system for tax incentives is categorized under Capital Allowance (CA). It is claimable deduction for fixed assets that include the likes of commercial machinery or office equipment.
In this case, installing a photovoltaic solar panel system will be qualified as “Plant & Machinery” – hence, you’ll be eligible to claim it for depreciation over 6 years in the form of 20% (Initial Allowance) in the first year and 14% (Annual Allowance) for the remaining years.
Of course, with effective tax incentives, grants or reliefs that can reduce your upfront costs, you can net a positive solar return of investment sooner.
How to ensure your solar panel system reaches a positive ROI?
1. Make sure your solar panel system provider engineers it correctly
With an effective and highly efficient design of your solar panel system, it should be performing at its peak to generate electricity and savings for you.
This is why the engineering design of your solar panels should be tailor-made for your structure by taking into account the shading area, soiling, safety measures, air circulation and so on.
With an expert solar panel service provider, you can make sure your investment into solar is being maximized every day!
2. Perform regular maintenance and servicing for your solar panel system
Your solar power system deserves the same attention as your beloved car – it will deteriorate and be damaged over time if it isn’t well-maintained!
Hence, one of the most effective ways of making sure your solar panels deliver full returns from your investment is by getting regular maintenance and servicing done frequently and thoroughly.
You should also monitor it occasionally to ensure everything is working well. Some issues you should look out for are fault detection, corrective maintenance as well as stringent measurements of reaction time.
Next Energy provides winning technical expertise for solar panel installation
With our extensive years of expertise in both residential, commercial and large scale solar programmes, Next Energy is a trusted authority in solar panel installations and is Malaysia’s preferred solar installer. We are also one of the many solar panel installers in Malaysia that have been accredited by Sustainable Energy Development Authority (SEDA).
Drop us a message if you would like a consultation on how to install your solar panels and how to receive benefits in terms of warranties, permits or even apply for tax incentives for your solar panel installation.
Interested to know more about solar energy, renewable energy, clean energy, net energy metering and solar photovoltaic (PV) or solar pv system? Do check out our blog section for the latest articles on solar energy industry, renewable energy sector, solar pv systems (pv systems), solar investment, solar leasing, green technology, how to take advantage of the Investment Tax Allowance (tax incentive) offered by Malaysian Investment Development Authority, Green Investment Tax Allowance GITA and net energy metering NEM.
