Define your future with the Energy Solution for Island Hotel: a PV system that delivers a decisive 25-year economic advantage.
The initial investment can be recovered within [3-5 years], leading to total cost savings of approximately [4 million MYR] over 25 years. Furthermore, its levelized cost of electricity is only about [one-third] that of diesel power generation.
It’s advantages in reliability, maintenance costs, and environmental protection are even more significant.
🌞 Basic Data and Assumptions
This project involves a typical island homestay with the following key electrical equipment and power requirements:
- Lighting and Sockets: 5kW
- Refrigerator: 0.5kW (Starting Power: 2kW)
- Water Pump: 2kW (Starting Power: 8kW)
- Air Conditioners x5 units: 2kW each (Starting Power: 7kW each)
To ensure all equipment, particularly the water pump with the highest starting power (8kW), can start smoothly, we selected a 30kW diesel generator as the baseline for comparison.
⚡Diesel Generator Solution Cost Analysis
- Equipment Purchase Cost: A high-quality 30kW diesel generator set (including installation) requires a one-time investment of approximately MYR 52,500.
- Operational Load Factor: Assuming a daily average load of 60% of the rated power, equaling 18kW (this is a relatively conservative estimate).
- Daily Power Generation: 18kW × 24h = 432 kWh
- Fuel Consumption Rate: Diesel generators achieve optimal fuel efficiency at 60-80% load; we use an average of 0.33 L/kWh.
- Daily Fuel Consumption: 432 kWh × 0.33 L/kWh = 142.56 liters
- Diesel Price: Based on the current price in Malaysia of MYR 2.85 per liter.
- Daily Fuel Cost: 142.56 L × MYR 2.85/L = MYR 406.30
- Annual Fuel Cost: MYR 406.30 × 365 = MYR 148,300
- Other Operational Costs: These include engine oil, regular maintenance, filter replacements, plus fuel transportation and labor costs, estimated at 30% of the fuel cost, i.e., MYR 44,490 per year.
- Total Annual Operating Cost: MYR 148,300 + MYR 44,490 = MYR 192,790
- Equipment Lifespan and Replacement: A diesel generator cannot run continuously for 25 years; we assume the unit needs replacing twice during this period.
- 25-Year Total Cost: = (Equipment Purchase Cost × 3) + (Annual Operating Cost × 25) = (MYR 52,500 × 3) + (MYR 192,790 × 25) = MYR 157,500 + MYR 4,819,750 = MYR 4,977,250
✨ Photovoltaic Energy Storage System Solution Cost Analysis
- System Design Goal: To meet the daily electricity demand of 432 kWh and achieve energy self-sufficiency.
- Photovoltaic System:
- Malaysia boasts excellent solar resources, with a daily average of peak sunshine hours estimated at 4.5 hours.
- Required PV Installed Capacity: 432 kWh / 4.5 h = 96 kWp.
- System Cost (including high-performance modules, inverters, mounting structures, transportation, and installation): Assumed at MYR 3,500 / kWp.
- Total PV System Investment: 96 kWp × MYR 3,500 = MYR 336,000.
- System Lifespan: 25+ years, with output power still exceeding 80% of the initial rating after 25 years.
- Energy Storage System:
- Goal: To store excess energy generated during the day for use at night and on cloudy days. Assuming the system needs to support an average nightly load of 10kW for 10 hours.
- Required Storage Capacity: 10kW × 10h = 100 kWh.
- System Cost (including LiFePO4 batteries, Power Conversion System (PCS), control system, and installation): Assumed at MYR 2,800 / kWh.
- Initial Energy Storage System Investment: 100 kWh × MYR 2,800 = MYR 280,000.
- System Lifespan and Replacement: Lithium battery cycle life can exceed 6000 cycles; we project one replacement around year 13. Accounting for cost reduction due to technological progress, the second purchase cost is estimated at 70% of the initial, i.e., MYR 196,000.
- Maintenance Costs: The PV storage system has minimal annual maintenance costs, estimated at 1% of the total initial investment, i.e., (MYR 336,000 + MYR 280,000) × 1% = MYR 6,160/year.
- 25-Year Total Cost: = PV Investment + Storage Investment① + Storage Investment② + 25-year Maintenance Cost = MYR 336,000 + MYR 280,000 + MYR 196,000 + (MYR 6,160 × 25) = MYR 812,000 + MYR 154,000 = MYR 966,000
💡 Financial Comparative Analysis
Total Cost of Ownership Comparison (25 Years)
| Item | Diesel Generator Scheme | PV ESS Scheme | Difference |
| 25-Year Total Cost | MYR 4,977,250 | MYR 966,000 | MYR 4,011,250 |
| Levelized Cost of Energy (LCOE) | MYR 1.26 / kWh | MYR 0.38 / kWh | MYR 0.88 / kWh |
Conclusion: The total cost of the PV energy storage solution over 25 years is less than one-fifth of the diesel generator solution, saving approximately 4 million MYR. Its levelized cost of electricity is only one-third that of diesel generation, highlighting its overwhelming economic advantage.
💰 Investment Payback Analysis
- Additional Investment for PV Storage System (Lifecycle): MYR 966,000 – MYR 52,500 = MYR 913,500
- Annual Savings from PV Storage System: Equals the diesel generator’s annual operating cost, MYR 192,790.
- Simple Static Payback Period: = Additional PV Storage Investment / Annual Savings = MYR 913,500 / MYR 192,790 ≈ 4.74 years
Conclusion: After accounting for the purchase and replacement costs of the diesel generator, the investment payback period for the PV energy storage system is approximately 4.7 years. From year 5 to year 25, the system will continuously generate substantial net profits.
📊 Comprehensive Advantage Comparison
- Economic Advantages:
- Substantial Long-Term Savings: Cost savings exceeding 4 million MYR provide ample capital for reinvestment.
- Cost Certainty: It locks in energy costs, completely avoiding risks associated with international oil price fluctuations.
- High Return on Investment: It transforms ongoing energy expenditure into a fixed asset investment with high returns.
- Operational and Maintenance Advantages:
- Minimal Maintenance: It eliminates the need for daily refueling and weekly maintenance, requiring only minimal inspection and cleaning.
- Quiet and Comfortable Operation: It completely removes generator noise and vibration, significantly enhancing the guest experience.
- High Reliability: Fully automated and intelligent operation avoids operational risks like engine failure and fuel shortages.
- Environmental Protection & Brand Value:
- Zero Carbon Emissions: It helps create a genuine “green homestay,” aligning with global sustainability trends.
- Strong Brand Image: “100% solar-powered” is a powerful marketing tool that can attract environmentally conscious guests, potentially increasing pricing power and occupancy rates.
- Energy Security:
- Energy Independence: It achieves complete independence from external fuel supply chains, which is crucial for islands with challenging logistics.
- Disaster Resilience: The PV storage system can guarantee the homestay’s basic power supply during severe weather events that disrupt fuel delivery.
🔋 Final Recommendation
For an island homestay, choosing a PV energy storage system is far more than a simple choice; it constitutes a critical strategic investment.
- Strong Recommendation: Despite the higher initial investment, its payback period of under 5 years and subsequent pure profit period of over 20 years make the PV storage system the optimal economic decision.
- Financing Suggestions: Consider green energy loans, financial leasing, etc., to address initial funding needs. Redirect the monthly budget previously allocated for diesel purchases towards system installment payments. Once paid off, enjoy virtually free electricity.
- Action Guide: We recommend engaging a professional PV system integrator to conduct a site survey, perform detailed design, and provide accurate quotations and power generation simulation reports to ensure the project delivers optimal benefits.
Investing in PV energy storage is not just an investment in equipment; it is an investment in the homestay’s low-cost operation, exceptional guest experience, and strong market competitiveness for the next 25 years.
