Running a factory is no small task, especially when electricity bills keep climbing year after year.

For Mr Amin, a factory owner in Malaysia whose operations run only during the daytime (8AM–6PM), monthly bills range from RM29,000 to RM31,000.

He has already tried to be careful with energy use, but now he’s exploring bigger, smarter ways to cut costs. One solution stands out: Solar PV under the Self-Consumption (SELCO) Scheme.


Why the SELCO Scheme Fits Mr Amin’s Factory Perfectly

The SELCO (Self-Consumption) scheme is designed for businesses that use the electricity they generate themselves, without selling the excess to TNB.

Here’s why it’s ideal for Mr Amin:

Daytime Operations = Maximum Solar Usage

• Solar panels produce power during daylight hours.
• Since Mr Amin’s factory runs from 8AM–6PM, most of the solar energy will be used immediately.

Direct Bill Reduction

• Every unit of solar power consumed is a unit less purchased from TNB.
• This reduces bills instantly without depending on export credits.

No NEM Quota or Approval Delays

• SELCO systems don’t require Net Energy Metering quotas.
• Installation is faster, with less paperwork.

Faster ROI

• High self-consumption means less energy “wasted” and more value per panel installed.

How Much Can Mr Amin Save with SELCO?

Let’s take an example:

• Current monthly bill: RM30,000
• After installing a 250kWp SELCO solar system, the factory could offset 60%–65% of its daytime usage.
• Estimated monthly bill after solar: RM10,000–RM12,000
• Monthly savings: ~RM18,000–RM20,000
• Annual savings: RM216,000–RM240,000
• Payback period: Around 3 years plus

After that, Mr Amin enjoys free power from the sun for 20–25 years, only paying minimal maintenance costs.


Extra Tips for Reducing Electricity Bills Without Solar

Even without solar, there are smart ways for factories to cut costs. In fact, doing these first can make solar even more effective because you’ll need a smaller system for the same impact.

Shift Operations to Off-Peak Hours

• Run high-energy equipment earlier or later in the day when tariffs are lower.

Upgrade to Energy-Efficient Equipment

• Replace old motors with IE3/IE4 high-efficiency models.
• Use Variable Speed Drives (VSDs) to match motor speed to the load.
• Switch to LED lighting with sensors in low-use areas.

Conduct an Energy Audit

• Identify leaks in compressed air systems, inefficient chillers, or idle equipment consuming power.

Improve Power Factor

• Install capacitor banks to avoid TNB penalties.

Maintain Cooling and Compressed Air Systems

• Regular cleaning and servicing improve efficiency.
• Lower compressed air pressure to the minimum needed.

The Best Strategy for Mr Amin

For maximum impact, the smartest move is:

• Reduce waste first through low-cost efficiency measures.
• Install a SELCO solar system sized to meet his optimised daytime demand.

This way, Mr Amin can:

• Keep his upfront solar investment smaller.
• Achieve a faster payback period.
• Lock in long-term savings and protect against electricity tariff hikes.

Conclusion

The combination of daytime operations and SELCO solar is a golden opportunity for factory owners like Mr Amin. By pairing solar with energy efficiency, he could slash his bills from RM30,000 to around RM10,000–RM12,000, saving nearly RM200,000 a year while making his business more sustainable.