On 7 February 2022, The Straits Times announced a policy by government industrial developer JTC Corporation that makes rooftop solar installations mandatory on new land allocations and renewals in all its estates.
This move sends a strong signal about Singapore’s commitment to meeting its 2GWp solar deployment target by 2030. With the JTC solar programme and similar models in the market, businesses can more easily benefit from switching to solar.
Mandatory JTC Solar Deployment Requirements
This mandatory JTC solar deployment applies to sites that fulfil the following conditions:
- At least 800 sqm of available contiguous rooftop area on which solar panels can be deployed
- Remaining lease period of 15 years or more
This requirement will also be stipulated in your new lease agreement.
About JTC Solar Programmes
There are currently two JTC solar programmes – SolarRoof launched in June 2017 and SolarLand in May 2019. SolarLand deploys portable solar PV panels on vacant land to maximise its utility for clean energy generation.
The SolarRoof programme aims to make solar adoption more accessible to building owners by allowing them to install solar panels on their unused rooftops with zero upfront capital outlay.
JTC lessees can choose between 3 solar deployment models:
- Solar Leasing: You lease solar panels from a vendor, paying a discounted rate on solar electricity generated to offset your electricity consumption. Also known as a Power Purchase Agreement (PPA) in the solar energy market.
- Rooftop Licensing: This is an alternative for businesses uninterested in using solar electricity. You lease available space in your premises (typically but not limited to rooftop) to a vendor for solar PV panel installation in return for rental of your space.
- Direct Ownership: You buy, install and operate the solar PV panels yourself, inclusive of maintenance cost. The solar energy generated will be used only by your business.
Commercial property owners who need to meet the JTC requirements may engage JTC’s solar partner Sembcorp or any other vendors of their choice, as long as the vendor submits rooftop solar plans to JTC under the voluntary Solar Deployment Scheme, before construction on the rooftop solar project commences.
Challenges for Businesses Interested in Installing Solar
Large enterprises with long remaining lease tenure can easily participate in the JTC solar programme and enjoy massive cost savings.
However for SMEs with limited contiguous roof area or shorter lease agreements, getting solar is significantly harder. Most solar developers only offer zero upfront installations for a minimum roof size around 5,000 sqm (or the equivalent of a 500 kWp solar system), with Power Purchase Agreements typically signed for a 20 to 25 years duration.
Get Zero Upfront Solar Offers
Solar AI works to solve the challenges above by offering zero upfront solar arrangements for SME property owners. You can secure lease terms as short as 5 years (compared to Sembcorp’s 16 year contract).
Enjoy instant energy savings with solar electricity rates as low as $0.10/kWh. Rest assured that all hassle, installation and maintenance costs are covered by us. You can simply enjoy solar savings and peace of mind.
Benefits of Solar Energy for Businesses
Several building owners have deployed rooftop solar on their own even before this programme. For example, sustainable packaging company Greenpac spent about $1 million installing solar panels on their building roof in 2011. Greenpac chief executive Susan Chong reports their energy savings close to $100,000 a year with solar.
Whether through enjoying electricity discounts or simply earning rental, businesses can greatly benefit from installing solar on their unutilised roof space. With zero capital upfront solar offers in the market, commercial property owners can further enjoy:
- Predictable energy pricing with the ability to lock in fixed electricity prices to protect against fluctuating wholesale energy prices
- No risks and operational costs from owning an energy asset since customers only pay for solar energy consumed
Pro tip: Save more by finding out what other green government grants are available for businesses.
Get an Instant Solar Estimate
For an immediate solar quote estimate, you can use our free online solar assessment tool here! We combine geospatial analysis of satellite imagery with big data and artificial intelligence to provide you with reliable solar information. Our technology conveniently generates a personalised analysis of the solar potential of your commercial property and calculates your savings.
Solar AI is a part of Engie Group, one of the world leaders in renewable energy. It has 24.4 GW of renewables globally and >2,000 employees in Southeast Asia. We welcome companies interested in exploring solar to contact us. Let our experts guide you through every step of your solar journey.