Are Solar Panels Worth Investing in Singapore? Pros and Cons to Consider

Are Solar Panels Worth Investing in Singapore? Pros and Cons to Consider


Solar energy is gaining popularity as an alternative energy source in Singapore, as the city-state aims to reduce its carbon footprint and increase sustainability. However, many people are still uncertain about the value of installing solar panels in their homes or businesses. In this article, we will explore the pros and cons of using solar energy in Singapore to help you decide if it is worth it for you.


Pros of Using Solar Panels in Singapore:

solar power

  1. Reduced Energy Costs:

    One of the main advantages of installing solar panels in Singapore is that they can significantly reduce your energy bills. By generating your own electricity, you can avoid paying high prices for traditional electricity sources.

  2. Environmental Benefits:

    Singapore is committed to reducing its carbon footprint and increasing sustainability. By using solar panels, you can contribute to this goal by reducing your reliance on non-renewable energy sources and decreasing your carbon emissions.

  3. Government Incentives:

    To promote eco-friendliness and support green initiatives, various government bodies offer financial incentives for solar panel installations in Singapore.

    Metering Credit Schemes

    Metering Credit Schemes are billing services that provide credits to owners of solar panels for any surplus power generated by their systems.

    Simplified Credit Treatment (SCT) Scheme

    The SCT Scheme is specifically designed for non-contestable households (under SP Group). Under this scheme, you will receive compensation for any excess energy generated by your solar panels based on the prevailing tariff rates, which amounts to approximately 75% to 80% of your electricity bill.

    Enhanced Central Intermediary Scheme (ECIS)

    If your solar capacity is less than 10 MWac, you are eligible for the ECIS. Through this scheme, any surplus energy produced by your solar panel will be reimbursed at the prevailing half-hourly wholesale energy prices.To learn more click on

  4. Increased Property Value:

    Installing solar panels can increase the value of your property by making it more attractive to potential buyers who are interested in sustainable living.


Cons of Using Solar Panels in Singapore:


  1. High Upfront Costs:

    The cost of installing solar panels in Singapore can be high, which may deter some people from investing in them. However, the long-term savings can often outweigh the initial investment.

  2. Dependence on Weather:

    The amount of energy generated by solar panels depends on the weather conditions, particularly the amount of sunlight received. Singapore’s tropical climate provides plenty of sunlight, but there may still be days when there is not enough sun to generate adequate power.

  3. Maintenance and Repairs:

    Solar panels require regular maintenance and occasional repairs to keep them functioning at optimal levels. This can be an additional cost to consider when weighing the value of solar energy.

  4. Limited Lifespan:

    Solar panels have a limited lifespan and may need to be replaced after 25-30 years. This can add to the overall cost of using solar energy.


Frequently Asked Questions (FAQs):


  1. How much can I save on energy costs by using solar panels in Singapore?

The amount of savings will depend on various factors, such as the size of your solar panel system and your energy usage. However, most households can save up to 50% on their energy bills by using solar energy.

  1. How long does it take to recoup the cost of installing solar panels in Singapore?

The payback period for solar panels in Singapore typically ranges from 5-10 years, depending on the size of the system and the amount of energy generated.

  1. Is it necessary to have a south-facing roof to install solar panels in Singapore?

While a south-facing roof is ideal for generating maximum solar power, solar panels can still be installed on other roof orientations, such as east or west-facing roofs.

  1. Do I need special permission to install solar panels in Singapore?

You may need to obtain permission from your building management or the authorities before installing solar panels in Singapore. It is best to check with the relevant authorities before proceeding with installation.




Solar energy has numerous advantages and disadvantages to consider when deciding whether to install solar panels in Singapore. While the upfront costs can be high, the long-term savings and environmental benefits can make it a worthwhile investment. With the Singapore government’s incentives and the city-state’s ample sunlight, using solar energy may be a smart choice for those looking to reduce their carbon footprint and save on energy costs.

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    • Jason

      Jason is an expert in CCTV, door access, and video intercom systems with 10+ years of experience in the security industry. Graduated with a Mechanical Engineering Degree. Offering tailored solutions and exceptional customer service. He is committed to ensuring the safety and security of clients' businesses and homes.