Relationship between installed capacity with total installation cost on solar PV among prosumer NEM 2.0 in Malaysia


  • Noriza Mohd Saad Faculty of Business Management, Universiti Teknologi MARA, Kelantan, Malaysia
  • Izzaamirah Ishak College of Energy Economics and Social Sciences,, Universiti Tenaga Nasional (UNITEN), Malaysia
  • Amar Hisham Jaaffar College of Business Management and Accounting, Universiti Tenaga Nasional (UNITEN), Malaysia
  • Mohd Zamri Laton Market Operations Division, Sustainable Energy Development Authority (SEDA), Malaysia


installation costs, installed capacity, net energy metering, prosumer, solar


Generate energy by Solar PV installation among prosumer, i.e; domestic, commercial, industrial as well as agriculture for self-consumption under Net Energy Metering (NEM) system become more popular in Malaysia. One, if not the only reason, is that day-to-day installation costs are kept at a decreasing rate and this is one of the reasonable ones for future investments and energy savings. By considering this issue, this study is motivated to investigate the relationship between installed capacity with the total installation costs as represented by equipment costs, installed costs, and operating costs. Secondary data was utilized provided by Sustainable Energy Development Authority (SEDA) Malaysia and retrieved from Malaysian Energy Information Hub (MEIH). The data is then run by multivariate regression, which is focused on the random and fixed-effect model. Overall, the findings indicate that there is a significant relationship between installed capacities with total installation costs among all categories of the prosumer in Malaysia. It would be recommended that the policymaker can increase the quota capacity allocation to the prosumer since the costs are at a diminishing rate that led to the take-up rate increase.


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How to Cite

Saad, N. M., Ishak, I., Jaaffar, A. H., & Laton, M. Z. (2021). Relationship between installed capacity with total installation cost on solar PV among prosumer NEM 2.0 in Malaysia. Linguistics and Culture Review, 5(S1), 1467-1479.



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