Solar energy: A key to cutting industrial electricity costs?
Industries could enjoy lower or almost zero electricity bills, which subsequently reduces overall operational costs.
SHAH ALAM - It is time for the industrial sector in this country to take serious steps by investing in solar energy, which can significantly save on electricity costs in the long run, thereby helping to control the rise in goods prices.
Universiti Teknologi MARA (UiTM) Solar Research Institute Director Professor Dr Nofri Yenita Dahlan said that after considering the installation costs of solar systems, industries could enjoy lower or almost zero electricity bills, which subsequently reduces overall operational costs.
However, she said that the reduction in electricity costs depends on several factors, including the size of the solar energy system, the rate of energy consumption, and the electricity tariffs imposed by utility companies.
"Industries using solar energy can save 20 to 50 per cent on their electricity bills.
"This reduction in electricity costs can result from savings on electricity usage from the grid, savings on maximum demand charges during peak loads, savings from selling excess solar energy to the grid through Net Energy Metering (NEM) credits earned on the bill, and savings from reducing energy from the grid that is not subject to the Imbalance Cost Pass-Through (ICPT) surcharge.
"The use of solar energy can be combined with smart energy management systems and artificial intelligence (AI) technology, which allows real-time and optimal monitoring and supervision of energy usage. This can increase energy efficiency and reduce wastage," she told Sinar on Monday.
At the same time, Nofri said that the industry should also take advantage of various incentives and support programmes provided by the government that could help reduce initial installation costs, lower electricity bills and speed up the return on investment.
She explained that with increasingly efficient solar energy technology and decreasing installation costs, the return on investment could be achieved within a few years, depending on how much solar energy the industry could generate and use directly.
"The installation costs of solar energy systems can vary depending on several factors, including the scale of the system, the type of solar panel technology and systems used, and the installation location.
"For commercial and industrial-scale solar energy systems, the average installation cost is between RM3,000 to RM5,000 per kWp (kilowatt peak). Larger systems usually have a lower cost per kWp," she said.
She added that investment in solar energy not only reduces operational costs but also enhances the competitiveness and sustainability of the industry.
"This not only reduces the carbon footprint but also improves the company's image in the eyes of customers and investors who are increasingly concerned about environmental issues.
"With government support and the smart technology available, industries in Malaysia have a great opportunity to leverage solar energy as their main energy source," she said.
It was reported that traders and manufacturers might not be able to lower the prices of goods solely due to the reduction in electricity tariffs as they still bear many other expenses and high raw material costs.
This follows the announcement that commercial and industrial electricity tariffs would experience a surcharge reduction of one sen per kilowatt-hour (kWh) starting from July 1 until Dec 31 this year.