Solar thermal installation capacity: Malaysia small medium enterprises with and without fiscal incentives

Abstract

This paper presents a comparison of solar thermal installation Capacity (STIC) with and without fiscal incentives for Malaysia Small Medium Enterprises (SME) sub-sector. The solar thermal installation capacity was measured through a policy evaluation system developed. The STIC was produced by System Dynamics Simulation (SDS) technique to measures the changes in installation capacity caused by SME acceptance, project risk and techno-economic analysis. The data were statistically analyzed to predict the optimal STIC between the fiscal incentives SDS models and non-fiscal incentives SDS models. The results revealed that the fiscal monetary and know-how on the solar thermal heating technology had the significant influence on the non-fiscal incentive SDS model, however, the fiscal incentives SDS models gave the best representation of level of installation capacity. The effect of the low percentage obtained on non-fiscal incentives SDS model has shown that solar thermal policy maker need to take into account that type, program and mechanism of incentives will give an impact the policy to be developed for SME heating process industries.