Switching to solar energy in Singapore can lead to significant electricity savings on your electricity bills and even allow you to earn money by selling excess power back to the grid.
Generally, there are three main ways to do this: the Simplified Credit Treatment (SCT) scheme, which offers predictable credits based on quarterly SP Group rates and is ideal for residential users; the Enhanced Central Intermediary Scheme (ECIS), available to those signed on to Open Electricity Market (OEM) retailers, where credits are based on the fluctuating wholesale Uniform Singapore Energy Price (USEP), offering potentially higher but variable earnings; and the Market Participant (MP) scheme, specifically for larger commercial solar producers, allowing them to register directly with the Energy Market Company to sell electricity at market prices.
This guide will mainly discuss the SCT and ECIS schemes, breaking down how they impact your electricity saving efforts and how to make the best financial choices for your home.
Switching to solar energy in Singapore can lead to significant electricity savings on your electricity bills and even allow you to earn money by selling excess power back to the grid.
Generally, there are three main ways to do this: the Simplified Credit Treatment (SCT) scheme, which offers predictable credits based on quarterly SP Group rates and is ideal for residential users; the Enhanced Central Intermediary Scheme (ECIS), available to those signed on to Open Electricity Market (OEM) retailers, where credits are based on the fluctuating wholesale Uniform Singapore Energy Price (USEP), offering potentially higher but variable earnings; and the Market Participant (MP) scheme, specifically for larger commercial solar producers, allowing them to register directly with the Energy Market Company to sell electricity at market prices.
This guide will mainly discuss the SCT and ECIS schemes, breaking down how they impact your electricity saving efforts and how to make the best financial choices for your home.
Solar panels produce electricity during the day by capturing sunlight, which powers your home and cuts down on your reliance on the grid, leading to electricity saving. This means less grid consumption during daytime hours.
There are two main ways for homeowners to sell back excess solar power in Singapore, depending on your home’s setup and your energy provider.The SCT scheme is designed for residential, non-contestable consumers—meaning you get your electricity from SP Group rather than OEM retailers. It offers a stable credit based on the quarterly tariff rate minus grid charges, which means you’ll receive about 75-80% of the rate. SCT is applicable only to residential installations with solar systems below 1 MWac. For instance, in Q3 2022, the SP Group tariff rate was $0.3017 per kWh (before GST). Under SCT, solar homeowners received a credit of approximately $0.2423 per kWh—approximately 80% of the tariff rate—enabling significant electricity savings.
ECIS is available for both residential and commercial users who buy electricity from OEM retailers rather than SP Group. ECIS applies as long as the system capacity is under 10 MWac. Credits are based on the USEP, which fluctuates every half hour according to market demand and supply. ECIS offers potentially higher earnings during peak periods but is more volatile, meaning that credits can vary significantly. Despite the fluctuations, it can lead to considerable electricity savings during high-demand periods.
When choosing how to save and earn from your solar energy, it’s essential to select a scheme that aligns with your financial goals and comfort with rate fluctuations. Currently, we recommend SP Group’s SCT scheme for its predictable rate based on SP's quarterly tariff, which is generally higher and more stable. Given that wholesale USEP prices are low at present, the SCT scheme offers consistent and reliable returns.However, if you’re open to market fluctuations for the possibility of higher returns, consider the ECIS scheme with an OEM retailer. At GetSolar, we support our Rent-to-Own customers by providing a twice-yearly newsletter that tracks USEP rates helping customers decide when to switch schemes.To maximise your electricity saving and get the most from your solar system’s sell-back options, reach out to GetSolar for guidance on choosing the best options for your solar needs.
If you have any inquiries or need support, our team of cheerful solar elves is here to assist you! Reach out to us on WhatsApp or drop us a messageat support@getsolar.ai, and we’ll be at your service!