Purchasing a solar system upfront can be expensive. That said, a solar PV system has a lot to offer. It’s a common misconception that solar is a one-way investment with little returns. However, while it’s certainly not cheap to install solar panels, there are plenty of benefits that come with it. Let’s dig into some of the top cost-saving facts about solar!
1) Decreasing Prices
Did you know that the cost of solar globally has declined by 89% in the last 10 years and is now the cheapest form of electricity generation? The Levelised Cost of Electricity (LCOE) is an industry measure for the lifetime costs of generating each unit of electricity through different generation sources. In the last few years, the LCOE for solar has also fallen below that of natural gas.
In Singapore, the cost of solar panels installation has also gradually decreased each year. This is in large part due to more efficient technology and lower costs. The Solar Energy Research Institute of Singapore (SERIS) forecasts that the cost of solar to decline another 33% from 2020 to 2030. Considering all this, there’s no better time to begin switching to solar and saving money on your electricity bills.
2) Attractive Cost Savings and a Long Term Investment
Installing solar can significantly reduce or even eliminate your electricity bills. Many landed property owners in Singapore have reported that they’ve experienced about $200-250 in savings on their monthly electricity bills after installing solar.
The upfront cost of installing solar on landed properties in Singapore is between $15,000 to $30,000. That said, the average solar homeowner pays off their solar investment in around 6 to 8 years. As solar panels can last up to 30 years, this means that the remaining 20 years of the solar panel’s lifespan basically generates free electricity! This works out to an annual return of between 10-20%!
Psst… did you know that you can also profit from solar? We know of some homeowners who end up generating even more solar than they can consume. After netting off their water and waste removal charges, SP Group pays them for the excess solar energy that they reinjected into the grid! Take a look below!
3) Solar Panels Come with Warranties
One other cost component you may want to take into consideration is the maintenance of the solar system. This is especially the case since your solar panels generally last you 20 to 30 years. In Singapore, most solar installers also offer 20 to 25-year warranties on your solar panels. This provides you with assurance against any failure or manufacturing defect. The typical inverters also come with a 5 to 10 year warranty period. However, since these equipment are built to weather harsh storms, a majority of homeowners don’t need to replace them during the warranty period.
Worried about the installation process and any damages incurred? Fret not! Many solar installers in Singapore also provide customers with a 1 to 3-year free workmanship coverage. This warranty covers any roof damages, leakages or electrical issues incurred during or after the installation process.
This article was first published on 25 September 2020 and last updated on 10 May 2021 to include additional details.
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