Solar panels have become a cornerstone of sustainable energy solutions in Singapore, especially as the nation intensifies its shift toward cleaner, greener technologies under the Singapore Green Plan 2030. Homeowners, building owners, and businesses are increasingly attracted to the promise of reduced energy bills, lower carbon footprints, and energy independence. However, while the advantages are compelling, there are several downsides and limitations to consider—especially when applied to the unique climate, policies, and infrastructure of Singapore.
This article explores the possible disadvantages of solar panels within the local context, helping you make a balanced and well-informed decision.
1. High Upfront Costs
One of the most significant barriers to solar panel adoption in Singapore is the initial capital investment. While prices have dropped significantly over the past decade, installing a solar PV (photovoltaic) system can still cost between S$10,000 to S$35,000 for residential systems, depending on system capacity and roof size.
For example:
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A 5 kWp system typically costs S$12,000–S$18,000.
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A 10 kWp system can cost S$20,000–S$35,000.
Though these costs are partially offset by electricity bill savings and SRECs (Solar Renewable Energy Certificates), many households still face sticker shock, especially in landed properties where larger systems are feasible.
1.1 Rent-to-Own (RTO) Plans: A Growing Alternative
To overcome the financial barrier, many solar companies in Singapore now offer Rent-to-Own (RTO) programmes. These allow homeowners to install a solar system with zero upfront cost, instead paying a monthly instalment that often matches or is lower than their usual electricity bill.
How it works:
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The solar company installs the system at no upfront charge.
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The homeowner pays a fixed monthly fee (e.g., S$200–S$400/month).
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The system is maintained by the installer during the lease period (typically 10–15 years).
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At the end of the term, ownership is transferred to the homeowner.
Benefits of RTO:
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No capital investment required.
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Immediate savings from the first month.
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System maintenance is included, removing servicing worries.
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Some plans come with performance guarantees to ensure output efficiency.
Drawbacks:
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Over time, you may pay more than the system’s purchase cost.
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Early termination fees may apply.
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Limited flexibility to upgrade or relocate the system during the term.
2. Weather Dependency
Singapore’s equatorial climate presents a mixed bag for solar efficiency. The country receives an average of 4.2–4.5 peak sun hours per day, which is generally good. However, heavy rainfall, cloud cover, and frequent storms, especially during the Northeast Monsoon season (December to March), can reduce solar output considerably.
Even with the best Tier-1 panels, you may experience:
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25% to 40% drop in energy output on overcast days.
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Seasonal output variation of 15% to 20%, depending on your system orientation.
While systems are usually oversized to compensate, full energy independence becomes more difficult unless supported by energy storage (which adds to cost).
3. Energy Storage is Expensive
Battery storage solutions like the Tesla Powerwall or Huawei Luna2000 offer homeowners the ability to store excess electricity for use at night or during power outages. However, these systems are not cheap. A single Powerwall unit in Singapore costs about S$10,000 to S$15,000 installed.
Without a battery:
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You’ll need to rely on the grid at night, undermining your self-sufficiency.
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Exported excess energy to the SP Group is compensated at the prevailing wholesale rate (~S$0.10–S$0.12/kWh), which is lower than retail import rates (~S$0.25/kWh).
Therefore, while solar systems reduce your import bill, they don’t completely eliminate electricity costs—unless paired with costly batteries.
4. Limited Roof Space in HDB and Condos
Although solar technology is viable in Singapore, housing type plays a big role in determining feasibility.
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HDB residents can’t install their own panels unless it’s a government-initiated SolarNova project.
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Condominium units also face restrictions unless the MCST (Management Corporation Strata Title) agrees to deploy solar on common property like rooftops.
Only landed property owners have full autonomy over rooftop solar installation, and even then, not all roof types are ideal:
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North-facing roofs are less efficient.
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Complex roof shapes may increase installation costs or reduce efficiency due to shadowing and limited panel space.
5. Not All Roofs Are Suitable
A major factor in solar viability is roof suitability, which includes:
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Orientation: South-facing roofs in Singapore capture the most sunlight.
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Tilt angle: The optimal tilt is ~10–15° in Singapore to balance solar gain and rain runoff.
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Shading: Nearby trees, tall buildings, or water tanks can significantly reduce solar output by 10% to 30%, even with bypass diodes or microinverters.
Also, some materials like clay tiles or metal sheeting may require additional mounting support, increasing labour and installation costs.
6. Long Payback Period
While electricity savings are real, they take time to materialise. The average payback period in Singapore ranges between:
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5 to 7 years for residential systems (without battery).
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8 to 12 years if battery storage is included.
If you sell your property within this period, your return on investment may be compromised—especially if the new owner does not assign much value to the solar system.
7. Maintenance Requirements
Although solar panels are generally low-maintenance, Singapore’s humid and dusty environment, coupled with frequent rainfall, can lead to the accumulation of:
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Bird droppings
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Dust and pollen
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Water stains or algae
This can reduce panel efficiency by 5% to 15% if not cleaned regularly. Most vendors recommend annual inspections and cleaning every 6 to 12 months, which may cost between S$200–S$500 depending on roof access.
Additionally, inverters (especially string inverters) usually have a lifespan of 8 to 12 years, requiring replacement costs of S$2,000–S$5,000 mid-way through the system’s lifespan.
8. No Government Rebates (Only Indirect Support)
Unlike countries such as Australia or the US, Singapore does not offer direct rebates or tax credits for residential solar installation. While businesses may benefit from accelerated depreciation schemes, homeowners only enjoy:
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Grid export credits
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Support from solar leasing or rent-to-own models
This makes the transition to solar entirely self-funded unless you sign up with a third-party provider.
9. Environmental Costs of Production and Disposal
While solar energy is clean, the production of solar panels involves:
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High-energy manufacturing processes
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Use of toxic materials like cadmium and lead
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Waste generation at end-of-life (panels last 25–30 years)
Singapore lacks a dedicated solar panel recycling programme. Most used panels are exported or stored, posing long-term challenges as adoption grows.
10. Visual and Structural Concerns
Aesthetically, some homeowners feel that solar panels detract from their roof design. This may be a factor in landed homes where appearance is closely tied to property value.
Additionally, improper installation may:
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Damage roof waterproofing or void warranties
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Add structural load to older roofs not designed for additional weight (typically ~15–20 kg/m²)
That’s why it’s crucial to engage a BCA-compliant, experienced solar panel contractor in Singapore.
Conclusion
Despite their many benefits—lower electricity bills, sustainability, and energy independence—solar panels do come with drawbacks. In the Singapore context, these include high upfront costs, weather variability, limited roof access for most residential dwellings, long payback periods, and the absence of direct government subsidies.
That said, these downsides don’t make solar a bad investment—they simply underscore the importance of proper planning, vendor selection, and financial evaluation.
Frequently Asked Questions (FAQ)
Q: Can HDB residents install solar panels?
A: No. Solar installation on HDB rooftops is centrally managed under the government-led SolarNova programme.
Q: What is the best direction for solar panels in Singapore?
A: South-facing rooftops with minimal shading are ideal. East-west configurations also work with slightly lower output.
Q: Do solar panels work on rainy days?
A: Yes, but output drops significantly—usually by 25–40%. Panels still generate electricity using diffused sunlight.
Q: Is solar power worth it in Singapore?
A: For landed property owners with suitable roofs and long-term plans, yes. But condo and HDB residents have limited options.