To work out solar payback, divide what the system costs you by what it saves you each year. An 8 kW system that costs RM25,000 after the rebate and saves RM5,400 a year pays for itself in about 4.6 years.
Calculate Your Solar Payback
Payback is the number of years a solar system takes to save what it cost. You can work it out on paper in three steps.
Payback in years = cost after rebate ÷ saving per year
Step 1: The Cost After Rebate
Start with the price on your quotation. If you qualify for the SuRIA Home rebate, subtract it. The rebate is RM600 per kWac, up to RM3,000, for systems commissioned by 31 December 2026.
| System | Price | Rebate | Cost after rebate |
|---|---|---|---|
| 4 kW | RM16,000 | RM2,400 | RM13,600 |
| 8 kW | RM28,000 | RM3,000 | RM25,000 |
| 12 kW | RM40,000 | RM3,000 | RM37,000 |
The prices are examples from inside our price ranges. Your quotation gives the real figure.
Step 2: The Saving Per Year
This is the number that needs care. The saving depends on how much of your solar power you use directly.
Under Solar ATAP, power you use as it is made comes straight off your bill. Power you export earns a credit against the energy charge for that month only.
Our estimates per month are RM200 to RM350 for 4 kW, RM400 to RM600 for 8 kW and RM600 to RM900 for 12 kW. Multiply the monthly figure by 12.
A home with people in it all day sits near the top of the range. A home that is empty all day sits near the bottom, or below it.
Step 3: Divide
Example 1: a terrace house, 4 kW
- Cost after rebate: RM13,600
- Saving: RM220 a month, or RM2,640 a year
- Payback: 13,600 ÷ 2,640 is about 5.2 years
Example 2: a semi-detached house, 8 kW
- Cost after rebate: RM25,000
- Saving: RM450 a month, or RM5,400 a year
- Payback: 25,000 ÷ 5,400 is about 4.6 years
Try it with the bottom of the range too. At RM400 a month, the 8 kW system takes 5.2 years. A sum that still works at the low figure is a safe one.
What the Simple Sum Leaves Out
The division is a first estimate. Four things move the real result.
- Tariff changes. If electricity prices rise, each unit you make saves more. If they fall, it saves less.
- Panel ageing. Panels produce a little less each year. The performance warranty sets the limit.
- Upkeep. Cleaning costs a little, and the inverter may need replacing during the life of the system.
- The rebate deadline. Without SuRIA Home, the cost in step 1 is higher.
How to Shorten the Payback
- Use power in the daytime. Run the washing machine, the water heater and the air conditioning while the sun is up.
- Do not oversize. Extra panels add cost, and unused credits end with the month.
- Keep the panels clean. Dirt lowers output.
- Check the app. A fault found early costs less production.
Is a Short Payback the Only Thing That Matters?
No. A cheap system with a short warranty can show a fast payback on paper and cost more later. Compare the equipment and the warranty as well. Our guide to installation costs lists what a quotation should show.
Get Your Own Calculation
WhatsApp SolarKita with your latest TNB bill. We will work out the payback for your home and show you the numbers behind it.
Frequently Asked Questions
How do I calculate solar panel payback?
Divide the cost of the system after any rebate by the saving per year. A system that costs RM25,000 and saves RM5,400 a year pays back in about 4.6 years.
What is a good payback period for solar in Malaysia?
Most homes recover the cost in four to six years. The panels carry a performance warranty of up to 25 years, so the saving continues long after payback.
Why is my payback longer than the estimate?
Usually because less of the solar power is used at home in the daytime. Exported power earns credits against the energy charge only, and unused credits end with the month.
Does the SuRIA Home rebate change the payback?
Yes. It lowers the cost by up to RM3,000, which shortens the payback. The system has to be commissioned by 31 December 2026.
Does a bigger system pay back faster?
Only if you use the extra power. A system larger than your daytime use exports more, and exported power is worth less than power you use directly.
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