If your savings are sitting in a fixed deposit earning 3.0–3.5% per year, you are probably feeling the pinch every time your TNB bill arrives. Here is a question worth asking seriously: what if your RM 28,000 worked harder on your rooftop than it does in a bank account?
The Headline Numbers: Solar vs Fixed Deposit in Malaysia
Let us put the two investments side by side before diving into the detail. We are using a standard 8kW residential solar system — the most popular size for a semi-detached home in Malaysia — as our benchmark.
| Investment | Capital Required | Annual Return | Return Type | 25-Year Value | Risk Level |
|---|---|---|---|---|---|
| Solar (8kW system) | RM 28,000 | 15–25% ROI | Guaranteed savings + export income | RM 133,000+ | Very Low |
| Fixed Deposit (BNM OPR 3.0%) | RM 28,000 | 3.0–3.5% p.a. | Interest income (taxable if business) | RM 59,300 | Very Low |
The gap is dramatic. Over 25 years — which is also the standard panel warranty period — solar outperforms a fixed deposit by more than RM 70,000 on the same initial capital. Let us break down exactly how those numbers work.
Real Solar Numbers: 8kW System in Selangor
These figures come from actual Trexon installations across Klang Valley. We are not using best-case scenarios.
System Cost Breakdown
- 8kW system (Longi N-Type panels, Huawei inverter, complete installation): RM 27,500
- Effective investment: RM 27,500
Monthly Returns
- Monthly generation: ~960 kWh (8kW × 4 peak sun hours × 30 days)
- Self-consumed (65%, saving at TNB Block 3 rate RM 0.571/kWh): 624 kWh × RM 0.571 = RM 356
- Exported via Solar ATAP (35%, at RM 0.218/kWh): 336 kWh × RM 0.218 = RM 73
- Total monthly benefit: RM 429
- Annual benefit: RM 5,148
Simple Payback Calculation
RM 23,500 ÷ RM 5,148/year = 4.56 years payback. After that, you earn RM 5,000+ per year for the remaining 20+ years of the panel's life — essentially free money from sunlight.
The 25-Year Compound Comparison Table
This table assumes: FD rate stays at 3.25% (current average), solar savings grow at 2% annually due to TNB tariff increases, and 0.5% annual panel degradation.
| Year | FD Balance (RM 23,500 @ 3.25%) | Solar Cumulative Savings | Solar Ahead By |
|---|---|---|---|
| Year 1 | RM 24,264 | RM 5,148 | – |
| Year 3 | RM 25,872 | RM 15,700 | – |
| Year 5 (FD payback) | RM 27,565 | RM 26,800 | Break-even year |
| Year 7 | RM 29,367 | RM 38,600 | RM 9,233 |
| Year 10 | RM 32,312 | RM 57,500 | RM 25,188 |
| Year 15 | RM 37,549 | RM 91,200 | RM 53,651 |
| Year 20 | RM 43,612 | RM 121,400 | RM 77,788 |
| Year 25 | RM 50,672 | RM 148,800 | RM 98,128 |
Note: Solar cumulative savings represent the total bills avoided and export income earned over the period, not the residual system value. FD balance includes principal and compound interest at 3.25%.
The Inflation Problem with Fixed Deposits
Malaysia's average CPI inflation runs at approximately 2.5–3.0% annually. When your FD earns 3.25% and inflation runs at 2.8%, your real return is only 0.45%. You are barely staying ahead.
Solar, by contrast, is an inflation hedge. Every time TNB raises electricity tariffs — and they have raised them three times since 2022 — your solar system becomes more valuable. The electricity you generate becomes worth more, automatically increasing your effective return without you doing anything.
TNB Tariff Escalation History
- 2022: Commercial tariffs increased 19.4%
- 2024: Residential Block 3 rates increased 5.8%
- 2026 forecast: Analysts project a further 3–7% increase as fossil fuel subsidies continue to be reduced
Each tariff hike effectively increases your solar ROI without any additional investment from you.
BNM OPR Outlook: Will FD Rates Improve?
Bank Negara Malaysia held the Overnight Policy Rate (OPR) at 3.0% through 2025 and into 2026. Most economists forecast the OPR remaining flat or reducing slightly if global growth slows. Fixed deposit rates will likely stay in the 3.0–3.5% range for the foreseeable future.
Even in an optimistic scenario where FD rates climb to 4.0%, solar at 15–25% ROI still wins by a substantial margin over the 25-year ownership period.
Risk Comparison: Is Solar Actually Safe?
The main objection to treating solar as an investment is risk. Fair point — let us address it honestly.
Solar Risks (and how they are mitigated)
- Panel degradation: Industry-standard 25-year performance warranty guarantees minimum 80% output at year 25. Longi, Jinko, and Trina panels from our installations have averaged 99.5% of rated output in year 1–3.
- Inverter failure: Sungrow and Huawei inverters carry 10-year warranties. We include extended inverter warranty in all Trexon packages.
- NEM policy change: The Solar ATAP program is legislated until 2030. Even if export rates reduce, your self-consumption savings (the larger portion) are completely unaffected by policy.
- House sale: Solar adds 3–5% to property values in Malaysia according to JPPH data. It is not a liability — it is an asset transfer.
FD Risks
- Real returns are near zero after inflation
- Rate risk: OPR cuts directly reduce your income
- Opportunity cost: Capital locked in low-yield instrument
- PIDM insurance limit: RM 250,000 per depositor — not a concern for most, but worth noting
The Dual Strategy: Solar AND Fixed Deposit
We are not suggesting you empty your savings account. The smartest approach is a hybrid strategy:
- Maintain 6 months of emergency fund in FD (liquid, safe)
- Invest in solar to eliminate your electricity bill (guaranteed return)
- Redirect your former electricity bill budget into FD or ASB monthly
When your RM 400–500 monthly electricity bill disappears, that money can flow into other investments. Solar does not just give you returns — it frees up monthly cash flow to accelerate your other financial goals.
Getting Started: What You Need
A standard 8kW system requires a semi-detached or bungalow with approximately 50–60 square meters of unshaded south-facing roof space. Before committing, Trexon provides the RM100 priority site visit (fully credited when you proceed) including:
- Roof suitability and shading analysis
- TNB bill analysis to size your system correctly
- ROI projection based on your actual consumption pattern
- Full quote with SolaRIS / Solar ATAP eligibility confirmation
Use our Solar Savings Calculator for an instant estimate, or compare our solar pricing packages to see all-inclusive costs by system size. If you want to understand the full Solar ATAP program, our Solar ATAP guide has everything you need.
The bottom line: Fixed deposits are safe. Solar is safe AND earns 5–8x more. In 2026, with panel prices at historic lows and TNB tariffs rising, the case for solar as your best low-risk investment has never been stronger.