Every Malaysian investor faces the same question: where should my next RM 20,000-50,000 go? Fixed deposit feels safe. ASB feels patriotic. REITs feel sophisticated. Gold feels timeless. And then your electricity bill arrives and you wonder if you are missing something on your rooftop. This guide compares how each option earns its return, and runs the solar numbers on the RP4 tariff. We do not quote returns for other assets: check current figures at the sources listed.
How Solar Compares With Other Options
Solar figures use Trexon catalogue prices and the RP4 domestic tariff. For every other option, rates and prices change, so check the current figure at the source shown.
| Option | Where the return comes from | How certain is it | Liquidity | Where to check the current figure |
|---|---|---|---|---|
| Solar (residential) | Electricity bills avoided + Solar ATAP export credit | Depends on your bill, daytime use and roof; not guaranteed | Monthly savings; the system stays with the property | Your own bill (see table below) |
| Fixed Deposit | Interest | Fixed for the term | High (on maturity) | Your bank's own rate page |
| ASB (Bumiputera) | Annual dividend and bonus | Declared each year by ASNB | High | ASNB's latest announcement |
| EPF | Annual dividend | Declared each year by EPF | Very low before the withdrawal age | EPF's latest announcement |
| Malaysian REITs | Distributions + unit price changes | Varies; unit prices move with markets and rates | High (market hours) | Each REIT's own reports |
| Gold | Price changes only | Varies widely; no cash flow | Medium | Current market prices |
| Stocks and index funds | Dividends + price changes | Varies widely | High (market hours) | Each fund's own factsheet |
Estimate on the RP4 domestic tariff (from 1 Jul 2025), before AFA, the 1.6% RE Fund and service tax; 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 under Solar ATAP; no tariff increases. Your bill and roof will change the figures.
Solar Returns Depend on Your Bill
Simple annual return = annual savings / system price (Solis prices; Huawei adds RM 3,000, Sungrow adds RM 5,000).
| Monthly bill | System | Monthly saving | Simple annual return | Payback |
|---|---|---|---|---|
| RM 200 | 5.58 kWp, RM 15,999 | about RM 143 | about 11% | about 9.3 years |
| RM 300 | 5.58 kWp, RM 15,999 | about RM 184 | about 14% | about 7.2 years |
| RM 500 | 7.44 kWp, RM 17,999 | about RM 291 | about 19% | about 5.2 years |
| RM 1,000 | 11.78 kWp, RM 25,999 | about RM 610 | about 28% | about 3.6 years |
Why Solar's Return Is Different
1. The Return Is Driven by Your Bill and the Sun, Not Markets
Other investments are subject to market risk: rates change, dividends fluctuate, prices cycle. Solar's return is set by how much electricity your panels displace and how much you export. It depends on your own bill and daytime use, so two homes can see very different results.
2. The Return Is Cost Avoidance, Not Income
Solar savings are avoided expenditure, not income, so for a homeowner they do not appear as taxable income. Check with your tax adviser for your own situation.
3. Tariff Changes Work Both Ways
Solar used at home avoids RM 0.4443/kWh on the RP4 tariff (RM 0.5443 above 1,500 kWh a month), and export earns RM 0.2703/kWh. If TNB's charges rise, your savings rise; if they fall, your savings fall. We assume no change.
Solar vs REITs, Gold and Stocks
- REITs: liquid and divisible, with distributions that depend on the REIT and unit prices that move with markets and interest rates. Solar is illiquid, but its return does not depend on market prices.
- Gold: a store of value with no cash flow; you cannot pay your electricity bill with price gains. Solar reduces a bill you pay every month.
- Stocks and index funds: can grow faster and can also fall; foreign holdings carry currency risk. Solar returns are in Ringgit and depend on your bill.
Solar's Risks
Solar is a low-volatility asset, not a risk-free one:
- Your bill and usage: savings fall if your usage falls.
- Policy: Solar ATAP export credit rules are set by the Energy Commission and SEDA; we count export credit for 10 years only.
- Equipment: panel degradation is covered by performance warranties; the inverter may need replacing during the life of the system.
- Roof and shading: a shaded roof generates less than the figures above.
Who Should NOT Prioritise Solar as an Investment
Solar is not the right primary investment for everyone:
- Renters: You need to own or have roof rights to install solar.
- Heavily shaded roofs: A roof with significant shade may generate only 50-70% of expected output. Get a shade analysis first.
- Very low electricity bills (under RM 200/month): Payback is 11 years or more. A smaller system or no solar may be appropriate.
- Investors prioritising maximum liquidity: Solar is a 25-year asset. If you need full liquidity within a few years, keep more in FD or money market funds.
Putting It Together
A sensible order for most homeowners: keep an emergency fund in a liquid, safe place first; then consider whether cutting a large electricity bill with solar beats the alternatives you have, using your own numbers; then diversify the rest. This is general information, not financial advice. Speak to a licensed financial adviser about your own allocation.
How to Get Your Personal Solar ROI Analysis
Every solar installation is different. Your actual ROI depends on:
- Your current TNB consumption (higher bills give better solar ROI)
- Roof orientation and available panel area
- Shading from trees, adjacent buildings, or roof features
- System size appropriate for your consumption
- Financing method (cash, bank financing or 0% card instalments)
Every Trexon quote is free and includes an ROI estimate for your property. Use our Solar Savings Calculator for an instant estimate based on your bill amount. Upload your last 3 TNB bills to our Bill Analyzer for a precise projection. Browse our solar packages to match system sizes to homes like yours. If you want to understand government incentives, our Solar ATAP program guide covers every detail.
Ready to see what your roof could earn? Get a free quote based on your bill and property details from Trexon Energy, a SEDA-registered solar installer for residential and commercial properties.
