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Configure solarSolar Panel ROI Malaysia 2026:
Is It Really Worth It? (We Do The Math)
The honest, number-by-number breakdown of solar panel return on investment in Malaysia — including payback period, IRR, NPV, 25-year savings, and how it compares to FD, ASB, REITs and stocks.
The Bottom Line: Quick Answer
Before we get into the full analysis — here are the headline numbers for Malaysia 2026.
"Solar is a long-term investment driven by sunlight, not market performance — with returns shown here on the Trexon RP4 savings basis."
How to Calculate Solar ROI
Three metrics every solar buyer should understand before signing a contract.
Simple Payback Period
The simplest metric. If your 6.20 kWp system costs RM16,999 and saves about RM230/month (RM2,760/year), your payback is 16,999 ÷ 2,760 = 6.2 years. Limitation: ignores the time value of money and assumes constant savings.
IRR — Internal Rate of Return
IRR is the annualised percentage return treating solar like a financial investment. Solar IRR of 15% means it's equivalent to putting your money in an instrument that compounds at 15%/year for 25 years, and the savings are not taxed. Compare it with current published FD, ASB or EPF rates.
NPV — Net Present Value
NPV discounts future savings to today's value. At a 6% discount rate, RM400 savings in Year 10 is worth only RM223 in today's money. If NPV is positive, the investment creates value above your hurdle rate. Positive NPV at 6% means solar beats the opportunity cost of investing elsewhere at 6%.
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Jinko N-type warranty: 0.4%/year after year 1
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25-Year Cumulative Savings
Payback: Year 8ROI by System Size — Malaysia 2026
Simplified estimates based on Trexon's catalogue prices, 3.5 sun-hours a day and the RP4 domestic tariff (from 1 Jul 2025), for a typical bill for each system size.
| System | Cost (RM) | Monthly Savings | Payback | 25-yr Return | IRR |
|---|---|---|---|---|---|
| 5.58 kWp (RM200 bill) | RM15,999 | RM143/mo | 9.3 yrs | RM39,480 | 9% |
| 5.58 kWp (RM300 bill) | RM15,999 | RM184/mo | 7.2 yrs | RM44,760 | 12% |
| 6.20 kWp (RM400 bill) | RM16,999 | RM230/mo | 6.2 yrs | RM56,400 | 15% |
| 7.44 kWp (RM500 bill) | RM17,999 | RM291/mo | 5.2 yrs | RM69,120 | 18% |
| 8.68 kWp (RM600 bill) | RM21,999 | RM346/mo | 5.3 yrs | RM81,120 | 17% |
* Estimates on the RP4 domestic tariff (from 1 Jul 2025), before AFA, the 1.6% RE Fund and service tax; Solis catalogue prices; 3.5 sun-hours a day; about 40% of solar used at home and the rest exported and credited at the 27.03 sen Energy Charge (capped at what you import) for 10 years (the Solar ATAP term); typical bills of RM200, RM300, RM400, RM500 and RM600; no tariff increase or degradation.
6 Factors That Affect Your Solar ROI
The numbers above are benchmarks. Your actual ROI depends on these six variables.
Electricity Tariff Rate
Higher monthly bills = faster payback. A household paying RM500/month benefits far more than one paying RM150/month. Under the RP4 tariff each kWh you no longer buy saves 44.43 sen (54.43 sen above 1,500 kWh a month), and lower grid use can move you into a higher Energy Efficiency Incentive band.
High impactSystem Size vs Consumption Match
Oversizing your system (generating more than you consume) wastes potential savings — excess power is exported at the Energy Charge (27.03 sen/kWh) and any credit left at the end of the billing period is forfeited. The optimal system size covers 80–100% of daytime consumption.
High impactRoof Orientation & Shading
South-facing roofs in Malaysia capture the most solar energy (100%), then east (about 93%) and west (about 91%); north is about 87%. Heavy shading from trees or buildings can reduce output by 20–40%.
Medium impactFinancing Method
Cash purchase delivers the highest lifetime ROI. A 0% card instalment of up to 24 months is effectively zero-interest (same ROI as cash). Bank loans and BNPL add interest, which reduces net profit; check the lender's current rate.
High impactTariff Changes
RP4 base rates apply from 1 Jul 2025 to 31 Dec 2027, and the fuel surcharge (AFA) changes monthly. Our tables assume no tariff increase. If tariffs rise, every kWh of solar saves more and payback shortens; use the calculator slider to test it.
Medium impactPanel Degradation Rate
The Jinko N-type panels in Trexon's packages are warranted to lose no more than 1% in year 1 and 0.4% a year after that — at least 87.4% of rated output at year 30. Older or budget panels can degrade faster. Always verify the manufacturer's linear power warranty.
Low-medium impactSolar vs Other Malaysian Investments
Where does solar rank when compared to conventional Malaysian investment vehicles?
| Investment | Annual Return | Tax on Returns | Guaranteed? | Risk Level |
|---|---|---|---|---|
| Fixed Deposit (FD) | 2.5–3.5% | None (exempt) | Government-backed | Low |
| ASB Dividend (unit trust; not guaranteed) | 4–5% | None (exempt) | Government-backed | Low |
| REITs | 5–8% | CGT may apply | No | Medium |
| KLCI Stocks | 6–10% | CGT may apply | No | High |
| Solar (IRR) | 9–18% | None (tax-free) | No — estimate (depends on sun and usage) | Low |
2 Financing Scenarios Compared
The financing method you choose significantly affects your monthly cash flow — but has minimal impact on 25-year lifetime ROI.
Cash Purchase
0% Card Instalment (24 months)
Illustrative ROI: 2 Malaysian Scenarios (Not Trexon Projects)
Estimates on RP4 domestic tariffs with no tariff increase; not a guarantee.
Estimates on RP4 domestic tariffs with no tariff increase; not a guarantee.
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