In the heart of Southeast Asia, Singapore is leading the charge in renewable energy, particularly through the adoption of solar panels. As the world grapples with climate change and seeks sustainable energy solutions, solar panels offer an efficient and eco-friendly alternative. This comprehensive guide aims to be your one-stop resource for understanding solar panels in Singapore, from the science behind them to the economic and environmental benefits they offer.
Pro tip: The total solar capacity in Singapore for residential homes increased by a whooping 12% from 2021 to 2022. People staying in the west of Singapore, enjoyed the most solar power, having the maximum solar capacity of 319.7 MWp! For homes contemplating solar, this guide covers all the essential information on solar panel costs, including installation fees, available government incentives, and potential long-term savings.
Key Takeaways
Upfront cost: S$15,000 to S$38,000 depending on system size and property type.
Break-even period: Typically 5 to 7 years with monthly savings of around S$300.
Low maintenance: Annual costs range from 1% to 1.45% of installation cost; cleaning visits cost S$300–S$500.
Long-term savings: Over S$70,000 in electricity savings across 20+ years, with potential for $0 bills and selling excess power back to the grid.
Why Install Solar Panels?
Solar panels are not merely a trend; they are a long-term investment in a sustainable future. Here’s why you should consider installing solar panels:
Electricity Cost Savings
Solar panels are a financially prudent choice. According to industry experts, solar panels can last for at least 25 years and are able to pay for themselves within 6 to 8 years, offering a high return on investment (ROI). This is a significant advantage over traditional energy sources, which often involve ongoing costs and lower ROI. With the Russia-Ukraine war, increased demand for electricity and a shortage of electrical alternatives, home electricity rates will only rise.
As of January 2023 from SP Group, Singapore has experienced a significant increase in electricity prices due to global economic conditions. Solar panels offer a sustainable and cost-effective solution to this issue, providing another compelling reason to make the switch.
| Economic Benefit | Description |
|---|---|
| Cost-Effectiveness | Solar panels can pay for themselves within 6 to 8 years, offering a high ROI. |
| Low Maintenance | With minimal upkeep, the running costs are significantly low. |
| Energy Savings | Reduce your electricity bills by up to 20%. |
How Break-Even Works for Solar Panel Installation in Singapore
Most homeowners in Singapore recover the cost of their solar panel installation within five to seven years, depending on factors such as system size, household energy consumption, and prevailing electricity tariffs. Once the investment is recouped, the electricity generated is essentially free for the remaining lifespan of the system—typically 20 to 25 years.
Example: Payback Period Calculation
Here is a practical scenario to illustrate:
| System Size | Estimated Cost | Monthly Savings | Estimated Payback Period |
|---|---|---|---|
| 5 kWp | S$22,000 | S$300 | Approximately 6 years |
A homeowner who installs a 5 kWp system for around S$22,000 and saves S$300 per month on electricity would break even in approximately 73 months, or just over six years.
After this point, the system continues to provide significant annual savings—typically around S$3,600 per year—adding up to over S$70,000 in savings across two decades.
Solar Panel Financing Options
Singaporean homeowners and businesses have four primary financing models for solar panels, each with distinct cost structures, ownership rights, and long-term savings implications.
1. Purchase (Upfront Payment)
Buying your system outright involves a one-time payment—typically starting from S$15,000 for a standard residential setup. You’ll own the system from day one, enjoy full energy savings, and keep any earnings from selling excess power back to the grid. However, maintenance is your responsibility.
Best suited for: Homeowners with available capital who want maximum long-term savings and full control.
2. Rent-to-Own (RTO)
This option requires no upfront payment. Instead, you pay a fixed monthly fee—usually between S$150 and S$220—over a contract period. Ownership transfers to you at the end of the term. The provider covers installation and maintenance, though any export earnings typically go to them until you take over.
Best suited for: Homeowners who want to adopt solar without a large upfront cost, but still want to eventually own the system.
3. Green Loan
Green financing, such as UOB’s U-Solar loan, allows you to pay in monthly instalments with little or no interest. Monthly repayments range from around S$400 to S$900, depending on system size and loan terms. You own the system immediately and can benefit from any export earnings.
Best suited for: Property owners who prefer structured monthly payments but still want full ownership from the start.
4. Power Purchase Agreement (PPA)
Under a PPA, a solar provider installs and owns the system on your roof. You pay only for the solar electricity you use, typically at a lower rate than SP Group’s tariff. The provider manages the system and keeps any export revenue. This model is common for commercial and industrial properties.
Best suited for: Businesses or large buildings seeking lower energy costs without owning or maintaining the system.
| Model | Upfront Cost | Monthly Payment | Ownership | Solar Sell-Back (selling excess electricity back to the grid) | Maintenance |
|---|---|---|---|---|---|
| Purchase | High (S$15,000+) | None | Immediate | Retained by owner | Handled by owner |
| Rent-to-Own (RTO) | None | S$150–S$220 | Transfers at contract end | Typically retained by provider | Included by provider |
| Green Loan | Low to none | S$400–S$900 (loan repayments) | Immediate | Retained by owner | Varies by installer |
| Power Purchase Agreement (PPA) | None | Fixed rate (e.g. S$0.14/kWh) | Never | Retained by provider | Fully managed by provider |
Operate A Home Purely On Solar Energy
The size of your solar system and how much power you utilize at home will decide this. After converting to solar, some homes could truly pay $0 a month on power. In fact, on a bright day, you may even create more electricity than your home uses and earn by selling the surplus to the grid!
In reality, we have a number of testimonies that attest to the practicality of powering your home completely with solar panels.
Batteries To Power My Solar Energy System
Most of the time, no. Since surplus solar energy may be sold back into the grid, grid-tied solar panel systems in Singapore are widely utilized and do not need batteries.
When it is bright outside, your house will first utilize the solar energy generated by your system to make power. If you consume more energy than is generated, the device will automatically take electricity from the grid. Your house will continue to collect electricity from the grid as normal at night when your system is not generating energy, so there won’t be any power outages. The end outcome? You save money on electricity as you utilize the grid substantially less.
Installing batteries is normally not suggested owing to their high cost (they might raise the cost of your system by $10–20,000 at this time). However, installing battery-ready inverters will make it easy for you to add batteries later on when costs decrease.
Install Solar Panels In A HDB Flat
Almost 80% of Singaporeans live in a HDB apartment. Unfortunately, this majority doesn’t have the opportunity to make adjustments such as placing solar panels on their HDB roof. Thankfully, HDB’s Green Towns Programme proposes to deploy 540 MWp of solar panels on Singapore HDB estates by 2030.
Install Solar Panels If I Live In A Condominium Or MCST
Condominium complexes are communal living areas and may have limitations stopping you from installing solar panels. However, if you’re the owner of a penthouse or MCST landed property and would want to acquire a solar panel installation, here are some key suggestions to consider:
- You will need to first receive consent from your condominium Management Corporation Strata Title (MCST)
- You will not be able to export or sell any extra power to the grid
- The solar system installed will be deemed a “hobby” installation and you may have to be accountable for any dangers to the condominium
Refer to this article on installing solar panels for condominium or strata landed properties for everything to consider.
Install Solar Panels In A Landed House
We provide solar panel installation for landed homes. For a quick tailored quotation, please contact us for a free site survey.
- Your Roof, Our Canvas: With just a simple addition to your roof, you can turn your home into a powerhouse of clean energy. No matter the size, we’ve got the perfect fit.
- Optimized for Singapore: Thanks to our equatorial location, your solar panels don’t need fancy angles. A slight tilt of 5 to 10 degrees is all it takes for maximum efficiency and self-cleaning!
Solar Panel Cost in Singapore
The cost of installation will vary dependent on numerous variables, including the amount of solar panels installed. The cost of a solar panel installation in Singapore varies from S$15,000 to S$38,000 or more. That stated, a fair estimate would be S$20,000 since most home solar panel systems are roughly 10 kWp (S$2,000/kWp).
While a 1,000 kWp industrial rooftop PV system might cost roughly S$940/kWp. Besides the quantity of solar panels placed, the operation and maintenance expenses vary from 1 to 1.45% of upfront expenditures (1% for big rooftop systems compared to 1.45% for smaller systems). For further pricing information you may refer to the 2020 “Update to the Solar PV Roadmap for Singapore ” paper, the National Solar Repository website or you can just contact out to us.
Warranty and maintenance for solar panels in Singapore
Most solar panels carry a 25-year power output guarantee in addition to a 12-year product warranty. Solar inverters, however, frequently come with a 5-year manufacturer’s warranty. These warranties frequently involve replacements of any physically faulty equipment on a one-for-one basis.
This suggests that even when new solar panels will be delivered at no cost to you if you need them within the warranty period, you might still be liable for paying your installer’s labor costs for the repair process. Solar panel installation providers often charge maintenance and cleaning charges in Singapore, which may range from $300 to $500 for every visit.
If you’re ready to make a green and financially sensible option, now is the time to invest in solar panels for your Singapore home/business. Reach out to us, and let’s commence on the path to energy independence while lowering your carbon impact. Don’t lose out on the chance to change your house with solar energy – contact us today.
Frequently Asked Questions
Not only does it help to save electricity bills, solar panel installations can also raise the value of your property. According to surveys, homes with solar panel systems sell 20% faster and for 17% more money. While these percentages may vary in the Singaporean context, the trend is clear: solar energy is an enticing factor for homebuyers.
The three important criteria that decide whether your roof is ideal for solar panels are as follows: Size, Shade Amount, Angle & Direction, and Size.
Solar panels may be put on most roofs. Solar panel installations would not be the greatest solution for roofs that are exceedingly intricate or shaded. A smaller system may fit on a smaller roof, which frequently gives a worse rate of return on investment.
In terms of financial incentives, Singapore offers several schemes:
- Net Metering Schemes: These are quite beneficial if you’re planning to install solar panels.
- Simplified Credit Treatment (SCT) Scheme: Mainly for residential installations. If you’re buying your electricity from SP Services and your system is under 1 MWac, you can benefit from this. It allows you to sell any excess solar energy back to the grid at about 75-80% of the SP Group’s electricity tariff rate. For example, as of Q3 2022, the rate was around $0.2423 per kWh.
- Enhanced Central Intermediary Scheme (ECIS): This is for both residential and commercial installations, especially if you’re a contestable consumer (choosing your electricity provider). The scheme compensates you based on the half-hourly wholesale energy prices, which vary but are generally lower than SP Group’s rates in the long term.
- Market Participant (MP): This is tailored more for commercial setups with installations over 10 MWac. Here, you directly engage with the Energy Market Company (EMC) and get compensated based on nodal energy prices, determined by the market demand and supply.
- Renewable Energy Certificates (RECs): These are quite interesting and can be a game changer. Essentially, they are tradable certificates that represent the green electricity your solar panels generate. Each REC equals 1MWh of electricity. You can sell these to companies looking to offset their carbon emissions, adding an extra layer of financial benefit to your solar installation.
- Energy Efficiency Incentives: Particularly notable is the Green Mark Incentive Scheme for Existing Buildings (GMIS-EB 2.0). This scheme supports energy-efficient retrofits in buildings, with incentives up to $1.2 million or 50% of qualifying costs. It’s part of Singapore’s broader strategy to turn most buildings green and energy-efficient by 2030.
Evaluating Your Roof in Singapore
When considering solar panels for your home in Singapore, here are the key factors to assess:
- Orientation and Inclination: Given Singapore’s geographical location, just about 1 degree north of the Equator, the orientation of solar panels is less critical compared to regions further from the equator. In Singapore, solar panels can be installed flat and horizontal, maximizing the exposure to the sun’s path. However, it’s beneficial to tilt them slightly at an angle of about 5 to 10 degrees. This slight inclination helps with self-cleaning as it allows rain to wash away any accumulated dust or debris, maintaining the efficiency of the panels.
- Roof Size and Condition: Ensure your roof has sufficient space for solar panel installation. On average, a typical panel is about 1.5 to 2 square metres. For a small home system, you’ll need a clear roof area of around 15 to 30 square metres. Additionally, the roof should be in good condition to bear the weight of the panels.
- Shading: Buildings or trees that cast a shadow over your roof can significantly diminish the efficiency of solar panels. In the high-density urban environment of Singapore, this is an important consideration.
- Building Regulations and Permissions: It’s essential to check with your building management or the relevant authorities in Singapore regarding any regulations or permissions needed for solar panel installation.
You may, particularly if you live in landed property – you wouldn’t need to apply for planning permission unless you’re
- Utilizing the space beneath your solar panels commercially
- Reside in a conservation area, or
- Want to put raised solar panels (one meter or more over your roof
You will, however, require a professional electrical worker’s endorsement of the system you put up. So unless you have the know-how, you’d probably be better off contacting us who is knowledgeable with safety requirements and construction and electrical restrictions.
