Solar panels are fast becoming an attractive renewable energy option for strong financial reasons, especially in sunny Malaysia. The process of converting sunlight to electrical energy is one that has improved dramatically over the last few decades, and is now more efficient than ever.
This is achieved by using a solar photovoltaic system that utilizes natural sunlight as a source of energy to generate electricity. The secret behind this is the vast number of silica or silicon cells on the solar panels.
To understand how exactly solar panels work, we’ve simplified the process of converting solar energy into electricity within a few simple steps:
1. Solar panels that are installed (typically on a building’s rooftops) absorb photons from the sunlight.
2. The existing conductors and silicon within the panel converts sunlight into electricity in the form of Direct Current (DC) which flows into the inverter.
3. The mentioned inverter proceeds to convert DC electricity to alternating current (AC) electricity that is usable by most homes and offices.
4. Meanwhile, any electricity that’s generated in excess will returned back to the electricity grid.
5. In any case, if your solar panels are not producing enough power required by your office, you can simply resume utilising electricity from your utility provider.
How can your office benefit from using a solar system?
1. Short term cost, long-term return potential
It goes without saying that solar power systems can significantly reduce your office’s electricity consumption from your electrical energy provider.
With a solar power system installed for your office, you can expect to consume less (or even completely) electricity by TNB, SESCO or SESB. You can also configure your solar and electricity system together to avoid the maximum demand charge from your electricity supplier.
For example, with enough electricity generated throughout the day, your office can draw the required energy during the periods of maximum demand charges or peak hours – this can be an effective way of avoiding massive charges and save a huge chunk of your electricity bill!
2. Be qualified for attractive government incentives
One of the key benefits of installing solar systems is the various incentives you’ll receive from the Malaysian government.
As solar photovoltaic systems are considered by the Inland Revenue Board (IRB) as “plant and machinery”, you’ll be allowed to claim your solar PV system for depreciation over a duration of 6 years, which includes an Initial Allowance of 20%, Annual Allowance of 14%, Balancing Allowance and Balancing Charge.
Furthermore, the Malaysian Investment Development Authority also provides an Investment Tax Allowance for businesses that install a solar system. Utilising this, you can expect to offset 70% of your statutory income in the year of assessment with 100% of the qualified capital spent on green technology.
Combining these incentives can heavily reduce your complete cost of your office’s solar power system by up to 48%. This, along with the massive electricity cost savings mentioned above, is a major boost to your office’s financial track record!
3. Opportunity as marketing leverage and company branding
Today’s consumers are much more sophisticated than before – many are choosing businesses that do not just offer them a mere product or service with good value.
They’re seeking for businesses that stand out among their competition in the way they conduct their business – and an eco-friendly business is always welcomed to those who place value on nature preservation or sustainability.
Therefore, your office or business can proudly display your solar system as a badge for marketing and branding exercises to increase your market size and share further.
What factors to consider before installing a solar system
1. The condition of your roof
Solar panels are extremely durable – they last up to thirty years and sometimes more. Meanwhile, most roofs on buildings will require major repairs much sooner before that.
Therefore, your roof should first be in excellent protection and made for extra durability as removing and reinstalling solar panels once fixed is a costly errand.
2. The location of your office building
While the sun shines throughout most of Malaysia’s cities, you’ll need to ensure that your office building isn’t built in the shadow of another taller building.
As you can imagine, a skyscraper that hinders sunlight from reaching your solar panels will significantly impair your solar panel’s ability to generate electrical energy and defeat the purpose of installing the solar system for office in the first place!
3. The option of solar panel you choose
As mentioned above, roof-mounted panels are considered the most well-regarded choice for solar panels.
These systems are often chosen for the simple fact that they utilize unused space for office buildings, and having the height advantage of placing the solar panels can maximise the electricity generated.
You can also choose from several types of panels, each with their own efficiency and potential returns.
Next Energy is Malaysia’s trusted solar systems provider
If you’re thinking of installing a solar PV system for your office or your building, you’re in luck – Next Energy is one of Malaysia’s leading solar solutions provider with top-quality products at an affordable price.
Drop us a message of your needs and our SEDA-certified engineers or customer experience consultants will get in touch with you shortly.
