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Configure solarThe 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, EPF, and stocks.
Before we get into the full analysis — here are the headline numbers for Malaysia 2026.
"Solar is the highest-return investment most Malaysians will ever make — guaranteed by physics, not market performance."
Three metrics every solar buyer should understand before signing a contract.
The simplest metric. If your 6kWp system costs RM20,499 and saves RM400/month (RM4,800/year), your payback is 20,499 ÷ 4,800 = 4.3 years. Limitation: ignores the time value of money and assumes constant savings.
IRR is the annualised percentage return treating solar like a financial investment. Solar IRR of 20% means it's equivalent to putting your money in an instrument that compounds at 20%/year for 25 years — but tax-free. Compare: EPF 5–6%, FD 2.5–3.5%.
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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Leave blank to use Trexon standard pricing
Historical average: 3–4%/year
Tier 1 panels: 0.5%/year (recommended)
25-Year Cumulative Savings
Payback: Year 9Benchmarks based on Trexon's pricing, average Malaysian sun hours (4.5–5hrs/day), and TNB tariff block rates.
| System | Cost (RM) | Monthly Savings | Payback | 25-yr Return | IRR |
|---|---|---|---|---|---|
| 4 kWp | RM14,999 | RM250/mo | 5 yrs | RM75,000 | 18% |
| 6 kWp | RM20,499 | RM400/mo | 4.3 yrs | RM120,000 | 22% |
| 8 kWp | RM25,499 | RM520/mo | 4.1 yrs | RM156,000 | 24% |
| 10 kWp | RM26,999 | RM630/mo | 3.6 yrs | RM189,000 | 27% |
| 12 kWp | RM29,999 | RM743/mo | 3.4 yrs | RM223,000 | 29% |
* Based on Trexon 2026 pricing, TNB domestic tariff block at RM0.218/kWh, 4.7 peak sun hours/day, 0.5% annual degradation, 3% annual tariff increase.
The numbers above are benchmarks. Your actual ROI depends on these six variables.
Higher monthly bills = faster payback. A household paying RM500/month benefits far more than one paying RM150/month. TNB's block tariff means the solar savings rate (sen/kWh) is highest for heavy users.
High impactOversizing your system (generating more than you consume) wastes potential savings — excess power is exported at low NEM rates. The optimal system size covers 80–100% of daytime consumption.
High impactSouth-facing roofs in Malaysia capture the most solar energy. North-facing is second-best. East/West split orientation loses 10–15% output. Heavy shading from trees or buildings can reduce output by 20–40%.
Medium impactCash purchase delivers the highest lifetime ROI. is effectively zero-interest (same ROI as cash). Bank loans at 3–5% reduce net profit by 8–15%. BNPL at 8–12% can reduce ROI by 25–30%.
High impactTNB tariffs have increased 3 times since 2014. Each 3% annual increase makes every kWh of solar savings worth more in real terms. At 5% annual tariff growth, a 4-year payback system could effectively pay back in 3.5 years.
Medium impactPremium Tier 1 panels degrade at 0.5%/year — your panels still produce 87.5% at year 25. Budget panels can degrade at 0.8–1.0%/year (producing only 75–80% at year 25). Always verify the manufacturer's linear power warranty.
Low-medium impactWhere 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 | 4–5% | None (exempt) | Government-backed | Low |
| 5–6% | CGT may apply | No | Low | |
| REITs | 5–8% | CGT may apply | No | Medium |
| KLCI Stocks | 6–10% | CGT may apply | No | High |
| Solar (IRR) | 15–25% | None (tax-free) | Yes (by physics) | Very Low |
The financing method you choose significantly affects your monthly cash flow — but has minimal impact on 25-year lifetime ROI.
"I was sceptical at first. But my FD only earns 3% — solar is giving me 22% effectively. Best financial decision I've made."
"My Myvi SE used to cost RM200/month in petrol. Now I charge it free from solar. Between the car and the house — solar paid for itself in under 3 years."
Our solar consultants will run a personalised ROI analysis based on your actual TNB bill, roof details, and financing preference — free of charge.
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