IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v102y2016icp65-82.html
   My bibliography  Save this article

Grid-connected photovoltaic systems for Malaysian residential sector: Effects of component costs, feed-in tariffs, and carbon taxes

Author

Listed:
  • Lau, K.Y.
  • Muhamad, N.A.
  • Arief, Y.Z.
  • Tan, C.W.
  • Yatim, A.H.M.

Abstract

Blessed with abundant solar radiation, Malaysia has a huge potential for grid-connected PV (photovoltaic) installations, particularly for its fast-growing residential sector. Nevertheless, Malaysia's PV installation capacity is relatively small compared with the global PV capacity. Significantly, the pricing mechanisms for grid-connected PV projects need to be appropriately assessed to build up the public's confidence to invest in PV projects. In this paper, we analyze the effects of component costs, FiTs (feed-in tariffs), and carbon taxes on grid-connected PV systems in Malaysian residential sector using the HOMER (Hybrid Optimization of Multiple Energy Resources) software. Results demonstrate that the implementation of grid-connected PV systems is highly feasible with PV array costs of $ 1120/kW or lower. For higher PV array costs up to $ 2320/kW, introducing an FiT rate three times higher ($ 0.30/kWh) than the grid tariff for a 100 kW grid sale capacity will, NPC-wise, prioritize grid-connected PV systems over the utility grid. By implementing the FiT ($ 0.50/kWh) and the carbon tax ($ 36/metric ton) schemes simultaneously, grid-connected PV systems will remain as the optimal systems even for costly PV arrays (up to $ 4000/kW). The findings are of paramount importance as far as PV pricing variability is concerned.

Suggested Citation

  • Lau, K.Y. & Muhamad, N.A. & Arief, Y.Z. & Tan, C.W. & Yatim, A.H.M., 2016. "Grid-connected photovoltaic systems for Malaysian residential sector: Effects of component costs, feed-in tariffs, and carbon taxes," Energy, Elsevier, vol. 102(C), pages 65-82.
    • Handle: RePEc:eee:energy:v:102:y:2016:i:c:p:65-82
    DOI: 10.1016/j.energy.2016.02.064
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544216301153
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2016.02.064?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    2. Antonelli, Marco & Desideri, Umberto, 2014. "The doping effect of Italian feed-in tariffs on the PV market," Energy Policy, Elsevier, vol. 67(C), pages 583-594.
    3. Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Abu-Bakar, Siti Hawa & McMeekin, Scott G. & Stewart, Brian G., 2011. "An evaluation of the installation of solar photovoltaic in residential houses in Malaysia: Past, present, and future," Energy Policy, Elsevier, vol. 39(12), pages 7975-7987.
    4. Oh, Tick Hui & Pang, Shen Yee & Chua, Shing Chyi, 2010. "Energy policy and alternative energy in Malaysia: Issues and challenges for sustainable growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(4), pages 1241-1252, May.
    5. Seel, Joachim & Barbose, Galen L. & Wiser, Ryan H., 2014. "An analysis of residential PV system price differences between the United States and Germany," Energy Policy, Elsevier, vol. 69(C), pages 216-226.
    6. Lau, K.Y. & Tan, C.W. & Yatim, A.H.M., 2015. "Photovoltaic systems for Malaysian islands: Effects of interest rates, diesel prices and load sizes," Energy, Elsevier, vol. 83(C), pages 204-216.
    7. Massetti, Emanuele & Tavoni, Massimo, 2012. "A developing Asia emission trading scheme (Asia ETS)," Energy Economics, Elsevier, vol. 34(S3), pages 436-443.
    8. Ahmad, Salman & Tahar, Razman Mat, 2014. "Selection of renewable energy sources for sustainable development of electricity generation system using analytic hierarchy process: A case of Malaysia," Renewable Energy, Elsevier, vol. 63(C), pages 458-466.
    9. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    10. Ahmad, Salman & Tahar, Razman Mat & Muhammad-Sukki, Firdaus & Munir, Abu Bakar & Rahim, Ruzairi Abdul, 2015. "Role of feed-in tariff policy in promoting solar photovoltaic investments in Malaysia: A system dynamics approach," Energy, Elsevier, vol. 84(C), pages 808-815.
    11. Ahmad, Salsabila & Kadir, Mohd Zainal Abidin Ab & Shafie, Suhaidi, 2011. "Current perspective of the renewable energy development in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 897-904, February.
    12. Khor, Cheng Seong & Lalchand, G., 2014. "A review on sustainable power generation in Malaysia to 2030: Historical perspective, current assessment, and future strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 952-960.
    13. Antonelli, Marco & Desideri, Umberto, 2014. "Do feed-in tariffs drive PV cost or viceversa?," Applied Energy, Elsevier, vol. 135(C), pages 721-729.
    14. Amin, Nowshad & Lung, Chin Wen & Sopian, Kamaruzzaman, 2009. "A practical field study of various solar cells on their performance in Malaysia," Renewable Energy, Elsevier, vol. 34(8), pages 1939-1946.
    15. Dong, C.G., 2012. "Feed-in tariff vs. renewable portfolio standard: An empirical test of their relative effectiveness in promoting wind capacity development," Energy Policy, Elsevier, vol. 42(C), pages 476-485.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang, Dong-xiao & Chen, Zi-yue & Yang, Yong-cong & Nie, Pu-yan, 2019. "Green financial policies and capital flows," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 522(C), pages 135-146.
    2. Sheikhhoseini, Mousa & Rashidinejad, Masoud & Ameri, Mehran & Abdollahi, Amir, 2018. "Economic analysis of support policies for residential photovoltaic systems in Iran," Energy, Elsevier, vol. 165(PA), pages 853-866.
    3. Abraham Alem Kebede & Maitane Berecibar & Thierry Coosemans & Maarten Messagie & Towfik Jemal & Henok Ayele Behabtu & Joeri Van Mierlo, 2020. "A Techno-Economic Optimization and Performance Assessment of a 10 kW P Photovoltaic Grid-Connected System," Sustainability, MDPI, vol. 12(18), pages 1-29, September.
    4. Das, Himadry Shekhar & Tan, Chee Wei & Yatim, A.H.M. & Lau, Kwan Yiew, 2017. "Feasibility analysis of hybrid photovoltaic/battery/fuel cell energy system for an indigenous residence in East Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 1332-1347.
    5. Tantisattayakul, Thanapol & Kanchanapiya, Premrudee, 2017. "Financial measures for promoting residential rooftop photovoltaics under a feed-in tariff framework in Thailand," Energy Policy, Elsevier, vol. 109(C), pages 260-269.
    6. Khezri, Rahmat & Mahmoudi, Amin & Aki, Hirohisa, 2022. "Optimal planning of solar photovoltaic and battery storage systems for grid-connected residential sector: Review, challenges and new perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    7. You-hua Chen & Pu-yan Nie & Chan Wang, 2021. "Effects of carbon tax on environment under duopoly," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13490-13507, September.
    8. Majid Ali & Juan C. Vasquez & Josep M. Guerrero & Yajuan Guan & Saeed Golestan & Jorge De La Cruz & Mohsin Ali Koondhar & Baseem Khan, 2023. "A Comparison of Grid-Connected Local Hospital Loads with Typical Backup Systems and Renewable Energy System Based Ad Hoc Microgrids for Enhancing the Resilience of the System," Energies, MDPI, vol. 16(4), pages 1-20, February.
    9. Ali, Fahad & Ahmar, Muhammad & Jiang, Yuexiang & AlAhmad, Mohammad, 2021. "A techno-economic assessment of hybrid energy systems in rural Pakistan," Energy, Elsevier, vol. 215(PA).
    10. José de Castro Vieira, Samuel & Tapia Carpio, Lucio Guido, 2020. "The economic impact on residential fees associated with the expansion of grid-connected solar photovoltaic generators in Brazil," Renewable Energy, Elsevier, vol. 159(C), pages 1084-1098.
    11. Nur Ayeesha Qisteena Muzir & Md. Rayid Hasan Mojumder & Md. Hasanuzzaman & Jeyraj Selvaraj, 2022. "Challenges of Electric Vehicles and Their Prospects in Malaysia: A Comprehensive Review," Sustainability, MDPI, vol. 14(14), pages 1-40, July.
    12. Muttqi, Kashem M. & Aghaei, Jamshid & Askarpour, Mohammad & Ganapathy, Velappa, 2017. "Minimizing the steady-state impediments to solar photovoltaics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1329-1345.
    13. Emmanuel, Michael & Akinyele, Daniel & Rayudu, Ramesh, 2017. "Techno-economic analysis of a 10 kWp utility interactive photovoltaic system at Maungaraki school, Wellington, New Zealand," Energy, Elsevier, vol. 120(C), pages 573-583.
    14. Laib, I. & Hamidat, A. & Haddadi, M. & Ramzan, N. & Olabi, A.G., 2018. "Study and simulation of the energy performances of a grid-connected PV system supplying a residential house in north of Algeria," Energy, Elsevier, vol. 152(C), pages 445-454.
    15. Tran Thi Lan & Sopin Jirakiattikul & M. S. Chowdhury & Dilawer Ali & Le Duc Niem & Kuaanan Techato, 2020. "The Effect of Retail Electricity Price Levels on the FI Values of Smart-Grid Rooftop Solar Power Systems: A Case Study in the Central Highlands of Vietnam," Sustainability, MDPI, vol. 12(21), pages 1-22, November.
    16. Rehman, Shafiqur & Ahmed, M.A. & Mohamed, Mohand H. & Al-Sulaiman, Fahad A., 2017. "Feasibility study of the grid connected 10MW installed capacity PV power plants in Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 319-329.
    17. K. Y. Lau & C. W. Tan, 2021. "Performance analysis of photovoltaic, hydrokinetic, and hybrid diesel systems for rural electrification in Malaysian Borneo," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 6279-6300, April.
    18. Liu, Lirong & Huang, Charley Z. & Huang, Guohe & Baetz, Brian & Pittendrigh, Scott M., 2018. "How a carbon tax will affect an emission-intensive economy: A case study of the Province of Saskatchewan, Canada," Energy, Elsevier, vol. 159(C), pages 817-826.
    19. Lau, K.Y. & Tan, C.W. & Yatim, A.H.M., 2018. "Effects of ambient temperatures, tilt angles, and orientations on hybrid photovoltaic/diesel systems under equatorial climates," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2625-2636.
    20. Dehghani, Ehsan & Jabalameli, Mohammad Saeed & Jabbarzadeh, Armin, 2018. "Robust design and optimization of solar photovoltaic supply chain in an uncertain environment," Energy, Elsevier, vol. 142(C), pages 139-156.
    21. Fazlur Rashid & Md. Emdadul Hoque & Muhammad Aziz & Talukdar Nazmus Sakib & Md. Tariqul Islam & Raihan Moker Robin, 2021. "Investigation of Optimal Hybrid Energy Systems Using Available Energy Sources in a Rural Area of Bangladesh," Energies, MDPI, vol. 14(18), pages 1-24, September.
    22. Ciprian Cristea & Maria Cristea & Dan Doru Micu & Andrei Ceclan & Radu-Adrian Tîrnovan & Florica Mioara Șerban, 2022. "Tridimensional Sustainability and Feasibility Assessment of Grid-Connected Solar Photovoltaic Systems Applied for the Technical University of Cluj-Napoca," Sustainability, MDPI, vol. 14(17), pages 1-23, August.
    23. Yuehong Lu & Zafar A. Khan & Manuel S. Alvarez-Alvarado & Yang Zhang & Zhijia Huang & Muhammad Imran, 2020. "A Critical Review of Sustainable Energy Policies for the Promotion of Renewable Energy Sources," Sustainability, MDPI, vol. 12(12), pages 1-31, June.
    24. Li, Chong & Zhou, Dequn & Zheng, Yuan, 2018. "Techno-economic comparative study of grid-connected PV power systems in five climate zones, China," Energy, Elsevier, vol. 165(PB), pages 1352-1369.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmad, Salman & Tahar, Razman Mat & Muhammad-Sukki, Firdaus & Munir, Abu Bakar & Rahim, Ruzairi Abdul, 2015. "Role of feed-in tariff policy in promoting solar photovoltaic investments in Malaysia: A system dynamics approach," Energy, Elsevier, vol. 84(C), pages 808-815.
    2. Shen, Neng & Deng, Rumeng & Liao, Haolan & Shevchuk, Oleksandr, 2020. "Mapping renewable energy subsidy policy research published from 1997 to 2018: A scientometric review," Utilities Policy, Elsevier, vol. 64(C).
    3. Fazeli, Alireza & Bakhtvar, Farzaneh & Jahanshaloo, Leila & Che Sidik, Nor Azwadi & Bayat, Ali Esfandyari, 2016. "Malaysia׳s stand on municipal solid waste conversion to energy: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1007-1016.
    4. Lau, Lin-Sea & Choong, Yuen-Onn & Wei, Chooi-Yi & Seow, Ai-Na & Choong, Chee-Keong & Senadjki, Abdelhak & Ching, Suet-Ling, 2020. "Investigating nonusers’ behavioural intention towards solar photovoltaic technology in Malaysia: The role of knowledge transmission and price value," Energy Policy, Elsevier, vol. 144(C).
    5. Farah Roslan & Ștefan Cristian Gherghina & Jumadil Saputra & Mário Nuno Mata & Farah Diana Mohmad Zali & José Moleiro Martins, 2022. "A Panel Data Approach towards the Effectiveness of Energy Policies in Fostering the Implementation of Solar Photovoltaic Technology: Empirical Evidence for Asia-Pacific," Energies, MDPI, vol. 15(10), pages 1-22, May.
    6. Chien Bong, Cassendra Phun & Ho, Wai Shin & Hashim, Haslenda & Lim, Jeng Shiun & Ho, Chin Siong & Peng Tan, William Soo & Lee, Chew Tin, 2017. "Review on the renewable energy and solid waste management policies towards biogas development in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 988-998.
    7. Bogdan Klepacki & Barbara Kusto & Piotr Bórawski & Aneta Bełdycka-Bórawska & Konrad Michalski & Aleksandra Perkowska & Tomasz Rokicki, 2021. "Investments in Renewable Energy Sources in Basic Units of Local Government in Rural Areas," Energies, MDPI, vol. 14(11), pages 1-17, May.
    8. Abdeshahian, Peyman & Lim, Jeng Shiun & Ho, Wai Shin & Hashim, Haslenda & Lee, Chew Tin, 2016. "Potential of biogas production from farm animal waste in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 714-723.
    9. Tang, Shengwen & Chen, Jingtao & Sun, Peigui & Li, Yang & Yu, Peng & Chen, E., 2019. "Current and future hydropower development in Southeast Asia countries (Malaysia, Indonesia, Thailand and Myanmar)," Energy Policy, Elsevier, vol. 129(C), pages 239-249.
    10. Nicolini, Marcella & Tavoni, Massimo, 2017. "Are renewable energy subsidies effective? Evidence from Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 412-423.
    11. Ho, Lip-Wah, 2016. "Wind energy in Malaysia: Past, present and future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 279-295.
    12. Yah, Nor F. & Oumer, Ahmed N. & Idris, Mat S., 2017. "Small scale hydro-power as a source of renewable energy in Malaysia: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 228-239.
    13. Muhammad Aslam Mohd Safari & Nurulkamal Masseran & Alias Jedi & Sohif Mat & Kamaruzzaman Sopian & Azman Bin Abdul Rahim & Azami Zaharim, 2020. "Rural Public Acceptance of Wind and Solar Energy: A Case Study from Mersing, Malaysia," Energies, MDPI, vol. 13(15), pages 1-24, July.
    14. Ramli, Makbul A.M. & Twaha, Ssennoga, 2015. "Analysis of renewable energy feed-in tariffs in selected regions of the globe: Lessons for Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 649-661.
    15. Behrens, Paul & Rodrigues, João F.D. & Brás, Tiago & Silva, Carlos, 2016. "Environmental, economic, and social impacts of feed-in tariffs: A Portuguese perspective 2000–2010," Applied Energy, Elsevier, vol. 173(C), pages 309-319.
    16. Koerner, Sonja Angelika & Siew, Wei Sian & Salema, Arshad Adam & Balan, Poovarasi & Mekhilef, Saad & Thavamoney, Nisha, 2022. "Energy policies shaping the solar photovoltaics business models in Malaysia with some insights on Covid-19 pandemic effect," Energy Policy, Elsevier, vol. 164(C).
    17. Sommerfeldt, Nelson & Madani, Hatef, 2017. "Revisiting the techno-economic analysis process for building-mounted, grid-connected solar photovoltaic systems: Part one – Review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1379-1393.
    18. García-Álvarez, María Teresa & Cabeza-García, Laura & Soares, Isabel, 2017. "Analysis of the promotion of onshore wind energy in the EU: Feed-in tariff or renewable portfolio standard?," Renewable Energy, Elsevier, vol. 111(C), pages 256-264.
    19. Buckman, Greg & Sibley, Jon & Bourne, Richard, 2014. "The large-scale solar feed-in tariff reverse auction in the Australian Capital Territory, Australia," Energy Policy, Elsevier, vol. 72(C), pages 14-22.
    20. Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Abu-Bakar, Siti Hawa & McMeekin, Scott G. & Stewart, Brian G., 2011. "An evaluation of the installation of solar photovoltaic in residential houses in Malaysia: Past, present, and future," Energy Policy, Elsevier, vol. 39(12), pages 7975-7987.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:102:y:2016:i:c:p:65-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.