Be it searching for ways to save money on your electricity bills, or wanting to be part of the global movement towards renewable energy, solar in Singapore has a proven track record of being financially beneficial. Here’re some of the top financial benefits that you can enjoy when installing solar panels in Singapore!
1. Enjoy The Cheapest Source Of Electricity In The World
According to Our World In Data, the cost of solar globally has declined by 89% from 2009 to 2019, and is currently the cheapest source of electricity. Its Levelised Cost of Electricity (LCOE), which is an industry measure for the lifetime costs of generating each unit of electricity through different generation sources, has fallen below the likes of even coal & 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.
2. Excess Solar Energy Generated Can Be Sold For Money
Make money with your solar set up! Did you know that there are currently several financial schemes in Singapore that allow you to sell excess solar you have generated back to the grid? The Energy Market Authority (EMA) has set up several different schemes that allow you to benefit from switching to solar. Two prominent residential schemes are the Simplified Credit Treatment (SCT) scheme and the Enhanced Central Intermediary Scheme (ECIS). The scheme that you’ll qualify for will depend on your current electricity service provider.
Simplified Credit Treatment (SCT) Scheme
Households that use SP Services (SPS) will be eligible for the SCT scheme. If you use a different electricity provider under the Open Electricity Market (OEM), you’ll qualify for the ECIS. Under the SCT scheme, you’d be paid for any excess energy generated by your solar panels at prevailing tariff rates minus grid charges. Since grid charges are around 25% of electricity tariffs, this means that you can sell excess solar back at about 75-80% of SP Group’s electricity tariff rate. In Q3 2022, with an SP Group tariff of 30.17 cents/kWh (before GST), you’ll be able to sell excess solar to the grid at 24.23 cents/kWh! This will be credited to you through rebates on your electricity bills.
Enhanced Central Intermediary Scheme (ECIS)
With the ECIS, SPS will act as an intermediary in handling the purchase of excess electricity generated by your solar panels. How much you earn will then depend on the half-hourly wholesale energy prices in Singapore (also called USEP for Uniform Singapore Energy Price). These prices fluctuate greatly and can change ten-fold within a month, but generally are expected to be lower than SP Group’s rates in the long run. You can find USEP price information on the Energy Market Company (EMC)’s website.
This means that if you’re generating a significant amount of excess solar energy and selling it back to the grid, you may earn more if you switch to SPS. This depends on 3 factors: (i) your monthly energy consumption, (ii) your daytime energy consumption, and (iii) the size of your solar installation. Reach out to us and we’ll be glad to give you more advice on this!
Renewable Energy Certificates (RECs)
RECs are another great way for you to enjoy the financial benefits of the solar energy generated by your system in Singapore. RECs are tradable renewable energy attributes that represent the amount of electricity generated by your solar setup. One REC is equivalent to 1MWh of electricity produced by your solar panels.
A typical 10kWp residential solar system will generate 12.5MWh of clean electricity in a year, which equates to 12.5 RECs. While the prices of RECs fluctuate, RECs may be able to fetch up to $30 in the market which means an extra $375 in financial benefits from your solar every year.
If you are a current homeowner who has an existing solar panel system, and wish to sell RECs, we can help do so through our very own RECs program. At Solar AI, we personally help to handle everything from registering of your system, finding buyers to selling RECs on your behalf. Enjoy regular cash payouts to your bank account, and watch your savings grow!
The best part is – we feature a no-commitments policy, which means you are able to cancel anytime if you are displeased with our REC prices.
For more information on our RECs program, click the button below.
3. Solar Panels Provide You Free Electricity In The Long Run
The longer you commit the more you earn! Solar is a long-term commitment that can generate cost savings for you for 20-30 years. With many new financial schemes and great advancements in solar technology, solar is now affordable and reasonable.
If you’re in for the long haul, utility savings over 25 years can be upwards of $50,000 for an average 10kWp system. However, the average breakeven period for residential solar panel setups in Singapore is only between 6 to 8 years. This also means that after 6 to 8 years, you and your household will get to enjoy free electricity for a lifetime!
Most importantly, your home will eventually rely on a renewable and clean source of energy and you’ll be doing your part in making the world that much greener.
Worried About High Upfront Costs? Pay Zero Upfront For Your Solar Panel System
The most common worry about installing solar in Singapore are often its high upfront costs, accompanied with the uncertainty of reaching breakeven point due to maintenance issues, or even potential roof damage.
This is why we have pioneered Singapore’s first rent-to-own solar programme, which allows you get instant savings from your solar panel system from day 1! Pay monthly for your solar panel system, while we cover all maintenance and servicing costs for absolutely no extra charge.
Interested to find out more? Click the button below!
This article was first published on 3 May 2021 and last updated on 18th July 2023 to include additional details.
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