Go Green

Earn some money for being green. I find it quite interesting. Anybody with extra cash in their pocket should consider this...

Q The star quoted an example of solar PV systems earning RM696 a month from a 4KW solar installation. How did you to calculate this figure?

A Under the proposed RE Act, the RE power system can enjoy the feed-in tariff rate.The Star may have quoted an example of a solar PV system, but there are also FiT incentives for biomass, biogas, and small-hydro.
 

For simplicity:
A 4 kWp solar BIPV = RM60,000 (capex)
And will generate = 400 kWh (yield per month) x 1.74 (FiT rate for 4 kW with BIPV) = RM696 per month (payment received from TNB)
Investment = 10% down payment + 90% bank loan at 6% for 15 years = RM6,000 + [RM456 (per month) x 15 years]

Key points:

• Not everybody has a RM60,000 cash to invest in a bank
• But many people has a home (with a roof)
• Thus, with only RM6,000 initial investment, the person can create secondary income of RM240 per month for 15 years, and RM696 per month for another 6 years.
• Thus, the roof can provide a shelter and also a cash to the person, and off-set CO2 from fossil fuel (1kWh = 0.7kg CO2).

 Reference: Q 106 > http://www.mbipv.net.my/dload/FAQs%20on%20FiT.pdf

Note: This entry was originally posted at http://brotherabn.blogspot.com