With 0% upfront options available, you no longer need cash to go solar. Let's compare the financial instruments available to Malaysians.
1. Cash Purchase
- Pros: Highest long-term savings. No interest.
- Cons: Opportunity cost of capital.
- ROI: ~20% per annum.
2. Solar Green Loans (Bank Financing)
Banks like Maybank, CIMB, and Hong Leong offer specific 'Green Tech' financing rates.
- Rate: ~3.5% - 4.2% p.a. (flat rate equivalent)
- Tenure: Up to 10 years
- Verdict: If the monthly installment is lower than your electricity savings, you are cash-flow positive from Day 1. This is the most popular option for 2026.
3. PPA (Power Purchase Agreement)
Typically for commercial only. A third party installs the system for free, and you buy the cheaper electricity from them. Zero risk, but lower total savings.