As of mid-2024, over 10,000 residential solar panel systems have been installed in Singapore — a clear signal that homeowners are rapidly embracing solar energy. With an average solar irradiance of 1,580 kWh/m²/year, Singapore receives significantly more sunlight than countries in temperate climates, making it an ideal location for rooftop solar deployment.
For landed property owners, solar energy offers both environmental and financial returns. A typical residential system ranges from 8 to 10 kilowatt-peak (kWp), requiring approximately 40–50 square metres of usable roof space. At current electricity tariffs and solar yields, most homeowners in Singapore achieve break-even within 4 to 6 years — with systems lasting 20 to 25 years. This translates to long-term electricity cost savings of up to 80%, depending on load profile and roof orientation.
Moreover, residential solar installations below 1 MWac qualify for simplified grid export schemes, allowing homeowners to offset their electricity bills by exporting unused energy back to the grid under prevailing rates.
With declining panel costs, enhanced solar panel warranties, and available sell-back mechanisms, solar has become a viable upgrade for Singaporean homeowners seeking energy independence and cost savings.
Singapore’s National Solar Energy Targets: Roadmap to 2030 and Beyond
Singapore’s solar energy strategy is guided by the Singapore Green Plan 2030 and a broader decarbonisation roadmap that positions solar as a key pillar in achieving net-zero emissions by 2050. While solar currently contributes a small percentage of national electricity demand, the government has set clear and aggressive deployment targets to expand capacity significantly in the coming years.
National Solar Targets:
| Year | Target Solar Capacity | Equivalent Output |
|---|---|---|
| 2025 | 1.5 GWp | Powers ~250,000 households |
| 2030 | 2.0 GWp | Powers ~350,000 households |
| 2050 | Potential: 4–5 GWp | Includes floating solar, regional imports, and ESS integration |
These targets represent a 6× increase from the ~350 MWp installed capacity in 2020, with a heavy focus on scaling rooftop solar, floating solar farms (e.g., Tengeh Reservoir’s 60 MWp plant), and integrated solar on infrastructure such as HDB rooftops and water treatment plants.
Strategic Enablers:
-
SolarNova Programme: A government-led initiative to aggregate public sector solar demand via bulk tenders.
-
Energy Storage Systems (ESS): Singapore aims to deploy 200 MW/285 MWh of ESS capacity by 2025 to manage solar intermittency.
-
Grid Readiness: The Energy Market Authority (EMA) is investing in grid infrastructure and regulatory frameworks to support higher solar penetration.
-
Cross-border Green Electricity Imports: Singapore targets importing 4–6 GW of low-carbon electricity by 2035, including solar energy from neighbouring countries via the ASEAN Power Grid.
These efforts are not isolated; they are coordinated across agencies including EMA, SP Group, HDB, PUB, and BCA, aligning renewable generation with national carbon reduction commitments under the Paris Agreement.
Green Mark Incentive Scheme for Existing Buildings
2.0(GMIS-EB 2.0)
| Green Mark Certification Level | Funding Factor ($ per tonne of CO2e) | Funding Cap |
|---|---|---|
| Green Mark Platinum | $25 | $600,000 or 50% of costs |
| Green Mark Super Low Energy | $35 | $900,000 or 50% of costs |
| Green Mark Zero Energy | $45 | $1,200,000 or 50% of costs |
Eligibility:
- Privately-owned existing buildings with a Gross Floor Area (GFA) of at least 5,000 square meters.
- Applicable to various building types, including commercial and institutional developments, light industrial buildings (with specific criteria), and residential buildings (for common area/services energy savings).
- Available until funds are fully committed or by March 31, 2027, whichever is earlier.
In March 2021, the Building and Construction Authority (BCA) in Singapore launched the Singapore Green Building Masterplan (SGBMP) to promote environmental sustainability and reduce carbon emissions in the construction sector.
As part of this plan, on June 30, 2022, BCA introduced the Green Mark Incentive Scheme for Existing Buildings 2.0 (GMIS-EB 2.0). The goal of this scheme is to improve the energy efficiency of existing buildings and make them more environmentally friendly. The aim is to make 80% of buildings in Singapore green by 2030.
GMIS-EB 2.0 offers financial support to building owners who want to upgrade their buildings to be more energy-efficient. This financial support helps cover the costs of making energy-efficient improvements to existing buildings and makes it more attractive for building owners to invest in such upgrades.
The scheme provides different levels of financial support based on the Green Mark certification rating and the extent of carbon emissions reduction achieved through Energy Improvement Works (EIWs). There are three levels of Green Mark certification that determine the funding support:
- Green Mark Platinum: This is the highest level, and building owners can receive $25 per tonne of carbon emissions reduced, with a funding cap of $600,000 or up to 50% of the qualifying cost, whichever is lower.
- Green Mark Super Low Energy (SLE): Building owners can receive $35 per tonne of carbon emissions reduced, with a funding cap of $900,000 or up to 50% of the qualifying cost, whichever is lower.
- Green Mark Zero Energy (ZE): This is the most energy-efficient level, and building owners can receive $45 per tonne of carbon emissions reduced, with a funding cap of $1,200,000 or up to 50% of the qualifying cost, whichever is lower.
To be eligible for GMIS-EB 2.0, your building must be privately-owned and have a Gross Floor Area (GFA) of at least 5,000 square meters. The scheme is available for various types of buildings, including commercial and institutional developments (like hotels, offices, and healthcare facilities), light industrial buildings (with specific criteria), and residential buildings (for energy savings in common areas/services).
It’s important to note that the scheme is available until the allocated funds have been fully used or until March 31, 2027, whichever comes first.
In summary, GMIS-EB 2.0 is a program in Singapore that provides financial incentives to building owners who want to make their buildings more energy-efficient and environmentally friendly. The level of support you can receive depends on the Green Mark certification level and the carbon emissions reduction achieved through energy improvements.
How Sell-Back Schemes Work in Singapore: Maximise Returns on Your Solar Investment
In Singapore, there are no direct subsidies for residential solar panel installation. However, homeowners and businesses can still monetise excess solar energy through sell-back schemes that allow them to export unused electricity to the national grid. These are often mislabelled as “net metering,” but Singapore does not use a net metering model. Instead, consumers are paid in cash or credits based on prevailing energy rates — not in kilowatt-hour (kWh) credits.
There are three main export schemes, each suited for different system sizes and types of electricity consumers:
1. Simplified Credit Treatment (SCT) Scheme
For:
-
Residential solar panel systems
-
Non-contestable consumers (buying electricity from SP Services)
-
Systems < 1 MWac
How it works:
-
You are paid for surplus electricity at the regulated tariff rate, minus grid charges (typically 20–25%).
-
This means your solar export earns about 70–75% of the prevailing electricity tariff.
-
Payments are credited directly to your SP Services electricity bill.
Note: Most licensed solar contractors will register your SCT account with SP Group on your behalf.
2. Enhanced Central Intermediary Scheme (ECIS)
For:
-
Residential or commercial systems
-
Contestable consumers (those purchasing electricity from a retailer under the Open Electricity Market)
-
Systems < 10 MWac
How it works:
-
Surplus electricity is sold at half-hourly wholesale prices from the Energy Market Company (EMC).
-
These rates fluctuate based on supply-demand conditions and are typically lower than regulated tariffs, but can occasionally spike during high demand periods.
Considerations:
-
ECIS offers potentially higher short-term returns during market surges (e.g. global energy crisis), but generally provides less predictable income than SCT.
3. Market Participant (MP) Scheme
For:
-
Large commercial solar systems
-
Systems ≥ 1 MWac
How it works:
-
Participants register directly with the Energy Market Company (EMC) to sell electricity as a wholesale Market Participant.
-
Compensation is based on nodal prices — rates that vary by physical grid location depending on demand-supply conditions.
Fees:
-
One-time EMC registration: S$5,400 (non-refundable)
-
Annual EMC participation fee: S$10,800
Ideal for: Energy developers or companies with multiple solar assets seeking direct access to wholesale electricity markets.
Key Differences at a Glance:
| Scheme | Eligible Consumers | System Size | Payment Basis | Price Volatility | Recommended For |
|---|---|---|---|---|---|
| SCT | Non-contestable (residential) | < 1 MWac | ~70–75% of tariff | Low | Homeowners |
| ECIS | Contestable (OEM) | < 10 MWac | Wholesale rate | Medium to High | SME or retail electricity users |
| MP | Commercial/industrial | ≥ 1 MWac | Nodal price | High | Energy developers |
By choosing the right export scheme, solar owners can optimise their return on investment. For most homeowners, SCT is the most stable and practical choice. For larger-scale commercial systems, ECIS or MP may offer higher upside — though with greater complexity and risk.
System Sizing, Roof Requirements, and Financial Breakdown
Understanding the technical details is critical—but even more impactful is seeing how government rebates and incentives transform your solar investment. At First Solution Group, we combine data-driven system sizing with comprehensive subsidy planning, giving you full confidence in both performance and cost-effectiveness.
System Sizing & Roof Area Analysis
Precise sizing ensures you maximise rooftop utilisation.
Estimated Roof Area Requirements
| System Size | Output (kWp) | Roof Area (m²) | Ideal For |
|---|---|---|---|
| Small | 3–5 kWp | 20–30 m² | Small terrace homes |
| Medium | 6–8 kWp | 35–45 m² | Standard landed homes |
| Large | 9–12 kWp | 50–65 m² | Bungalows, heavy-users |
| Commercial | 15–100+ kWp | 100+ m² | Schools, factories, offices |
We use 4–5 m² per kWp as a guideline, and confirm through on-site shading and structural analysis.
Subsidies & Financial Incentives (How to Reduce Costs)
- SolarNova Co-funding Grant
- Covers up to 50% of capex, capped at S$20 million per project.
- For a typical 10 kWp system (~S$18,000), SolarNova offsets ~S$9,000.
- Final upfront cost: S$9,000 (pre-tax).
- Enhanced Net Energy Metering (ENEMS)
- Export excess energy back to the grid.
- Often increases realised value to 15–25% more than SCT alone.
- Adds extra S$360–900/year in credits for 10 kWp systems.
- Enhanced Capital Allowance (ECA)
- Allows claiming 100% of qualifying expenditure in the year of assessment.
- Example: S$9,000 subsidy + S$9,000 capex = S$18,000 qualifying expenditure.
- Creates a full-year tax deduction (benefit depends on company tax rates).
System Cost Before vs After Subsidies
| Description | Value (S$) |
| Total Installation Cost | 18,000 |
| – SolarNova Grant (50%) | –9,000 |
| Effective Capex | 9,000 |
Energy Output & Electricity Savings
A 10 kWp system in Singapore with 1,580 kWh/m²/year irradiance yields:
- Annual production: ~12,000 kWh
- Energy bill savings: 12,000 kWh × S$0.30 = S$3,600/year
With ENEMS sell-back credits, you could realistically add S$360–900/year, netting S$3,960–4,500/year.
Depreciation, Maintenance & Revised ROI (With Subsidies)
Depreciation
- Over 25 years: S$9,000 ÷ 25 = S$360/year
Maintenance
- Cleaning & inspection: S$200/year
- Inverter diagnostics: S$50–100/year
- Total annual maintenance ~S$300
Inverter Replacement
- Expected ~Year 10 cost: S$1,500
Financial Summary: 25-Year Analysis (Post-Subsidy)
| Description | Value |
| System Payable Upfront | S$9,000 |
| Annual Electricity + Sell-Back Savings | S$4,200 (average) |
| 25-Year Gross Savings | 4,200 × 25 = S$105,000 |
| Total Maintenance (25 years) | 300 × 25 = S$7,500 |
| Inverter Replacement (Year 10) | S$1,500 |
| Total Investment + Running Cost | 9,000 + 7,500 + 1,500 = S$18,000 |
| Lifetime Net Gain | 105,000 – 18,000 = S$87,000 |
| Return on Investment (ROI) | 87,000 ÷ 18,000 ≈ 483% |
Payback Period
- 9,000 ÷ 4,200 ≈ 2.1 years
- Including maintenance/inverter: approximately 2.3–2.5 years
System Components, Compliance & Quality
- Panels: Tier‑1 monocrystalline ≥20% efficient
- Mounting: BCA wind-rated
- Inverters: Hybrid or string with ≥97% efficiency
- Monitoring: Live mobile/desktop tracking
- All systems come with SP Group & EMA approvals, and installation is handled by Licensed Electrical Workers.
Integration with Financial Tools
Our turnkey package includes:
- Accurate yield estimation
- Subsidy-optimised cost structure
- ROI and life-cycle financial modelling
- ENEMS eligibility and grid application
- Optional service for Renewable Energy Certificates (RECs)
Installed Warranty & Performance Guarantees
| Component | Warranty | Durability |
| Panels | 25-year performance | 25–30 years |
| Inverter | 5–10 years | 10–15 years |
| Mounting System | 10 years | 20+ years |
Absolute Transparency: What You See Is What You Get
We offer clients:
- System designs including site-specific energy forecasts.
- Detailed subsidy breakdown with net pricing.
- Tax allowance projections for businesses.
- Depreciation schedules for accounting visibility.
- Ongoing maintenance audit and optimisation checklists.
Conclusion: Solar With Subsidy = Maximum Value
By leveraging SolarNova, ENEMS, and ECA, your 10 kWp system buys down from S$18,000 to S$9,000. Add in maintenance and performance, and you’re looking at:
- Payback in under 2.5 years
- Lifetime ROI approaching 483%
- About S$87,000 net return over 25 years
Contact us today for a full system design, subsidy analysis, and no-obligation financial forecast. We’ll show you the specific numbers for your roof, usage, and application—so you can invest with confidence.
Renewable Energy Certificates (RECs): An Additional Revenue Stream for Solar Owners in Singapore
In addition to selling excess electricity back to the grid, solar panel system owners in Singapore can also benefit financially by issuing and selling Renewable Energy Certificates (RECs). RECs are tradable digital assets that certify the generation of clean electricity from a renewable source.
What is a REC?
A Renewable Energy Certificate (REC) represents 1 megawatt-hour (MWh) of electricity that has been generated from a verified renewable energy source, such as solar photovoltaic (PV) systems. These certificates are issued through accredited platforms such as:
-
International REC Standard (I-REC)
-
T-REC (T-RECS.ai, a local REC registry in Asia)
Once generated, RECs can be sold on the open market to buyers such as multinational corporations (MNCs), data centres, or sustainability-focused businesses that want to:
-
Offset their carbon emissions,
-
Achieve net-zero goals, or
-
Meet Environmental, Social, and Governance (ESG) reporting requirements.
How Do You Earn from RECs?
-
Install a solar PV system with proper monitoring equipment (typically ≥10 kWp to make RECs financially viable).
-
Register your installation with an approved REC registry (e.g. I-REC or T-REC) through an authorised aggregator or solar company.
-
Your system’s energy production is verified and recorded in real-time.
-
For every 1 MWh generated, one REC is issued to your account.
-
You can sell these RECs via a broker or REC platform to buyers locally or internationally.
How Much Are RECs Worth?
REC prices in Singapore vary depending on:
-
Certificate type (e.g. I-REC, T-REC)
-
Market demand
-
Buyer ESG goals
As of 2024, prices for Singapore-issued RECs typically range between US$3 to US$20 per REC, although premium prices may be achieved through long-term corporate Power Purchase Agreements (PPAs) or bulk REC contracts.
Example:
A 10 kWp system in Singapore produces ~12–13 MWh/year. At US$10/REC, this can generate ~US$120–130 (S$160–175) annually in additional income — independent of electricity savings or grid sell-back payments.
Advantages of RECs for Solar Owners
| Benefit | Description |
|---|---|
| 💰 Extra Revenue | Monetise every MWh of solar energy beyond just energy bill savings |
| 🌍 Environmental Impact | Contribute to the renewable energy ecosystem by enabling corporate decarbonisation |
| 🧾 ESG Reporting | RECs are valid for sustainability certifications and may support green building ratings |
| 🔁 Stackable | RECs can be earned alongside grid sell-back schemes like SCT or ECIS |
What You Need to Participate
To begin issuing RECs, solar owners typically need:
-
A PV system with automated metering and remote monitoring
-
A registered system aggregator or solar consultant (e.g. First Solution Group or T-RECs.ai)
-
Periodic energy reports to verify output and performance
-
Compliance with registry technical standards (I-REC device codes, documentation, etc.)
Proven Track Record: Real Savings from Real Solar Installations
At First Solution Group, we believe results speak louder than claims. Since 2018, we’ve completed over 250 residential and commercial solar panel installations across Singapore, delivering more than 3.5 megawatt-peak (MWp) of total installed solar capacity.
Our experience spans landed homes, industrial buildings, commercial properties, and educational institutions, with each system customised for optimal performance and long-term savings.
Measurable Energy Savings
On average, our clients enjoy 60–80% reductions in their monthly electricity bills, depending on system size and consumption patterns. Most residential systems installed by our team achieve payback within 4 to 6 years, with panels continuing to generate free electricity for another 15–20 years beyond that.
Example ROI:
A typical 10 kWp solar system installed on a landed property generates ~12,000 kWh/year.
At an average tariff of S$0.30/kWh, this results in annual savings of ~S$3,600, with a return on investment achieved within approximately 5 years.
Ongoing System Monitoring and Support
Every solar system installed by First Solution Group is backed by:
-
Real-time performance monitoring
-
Comprehensive workmanship warranty
-
Extended 5-year inverter and panel warranty
-
On-site fault diagnosis within 48 hours
-
Preventive maintenance packages available upon request
We ensure our clients not only benefit from the initial installation but continue to receive full technical support throughout the lifespan of their system.
What Our Customers Say
“We installed a 9.5 kWp system with First Solution Group in early 2023. Our monthly bill dropped from S$380 to under S$120. The team handled everything professionally, including grid registration and rebate submissions. Highly recommended.”
— Mr. Tan, homeowner in Serangoon Gardens
“Reliable, responsive, and detail-oriented. Our commercial rooftop system has saved us thousands every quarter. First Solution Group also helped us register for REC sales.”
— Ms. Low, facilities manager, industrial building in Jurong
Your Solar Journey Starts with Data-Driven Results
Choosing a solar partner is about more than equipment — it’s about proven performance, after-sales service, and the confidence that your investment will deliver long-term returns. With First Solution Group, you get a data-backed, results-oriented approach to solar energy.
📞 Get in touch today to speak with our engineers or request a free estimate based on your property’s location, usage, and roof potential.
Additional Resources:
Solar Panel Cost
Solar Panel for Condos
Solar Panel Expert Guide