Why PPA Is Not Applicable for Residential Homes in Singapore

Thinking about a Power Purchase Agreement (PPA) for your home? In Singapore, PPAs only apply to commercial buildings, not residential ones, because of how they’re regulated and financed. With GetSolar’s Rent-to-Own (RTO) plan, homeowners can still enjoy $0 upfront solar, full maintenance, and guaranteed performance while keeping ownership and control.

If you’ve been researching solar energy options, you might have come across the term Power Purchase Agreement (PPA). It’s a popular setup for businesses and large facilities but what about homeowners in Singapore?

Many landed homeowners ask if they can “do a PPA” for their house. The short answer is no, and for good reason. Residential PPAs aren’t available in Singapore because of how PPAs are structured, regulated, and financed.

But don’t worry—there’s a better alternative that gives you the same $0 upfront advantage, without losing ownership or flexibility: GetSolar’s Rent-to-Own (RTO) solar plans.

What Is a PPA and How Does It Work?

A Power Purchase Agreement (PPA) is a long-term contract where a solar provider installs, owns, and maintains the solar system on your property. You don’t pay for the panels—you only pay for the electricity the system generates, usually at a rate lower than your utility bill.

In Singapore, PPAs are mainly used by commercial or industrial buildings with large rooftops and consistent daytime energy use. For residential properties, however, the economics and legal structure simply don’t fit.

If you want a deeper understanding of solar ownership options, you can also explore our guide on how Rent-to-Own solar works.

Why PPA is Not Applicable for Residential Homes

Here’s why PPAs aren’t designed for landed homes:

1. Scale and Energy Demand

PPAs only make financial sense when energy usage is large enough to justify system costs. Commercial properties run equipment, lighting, and air-conditioning throughout the day while residential homes don’t.

2. Licensing and Contract Complexity

PPA providers must be licensed to sell electricity, and such arrangements are regulated by Energy Market Authority (EMA). These contracts are complex and tailored to businesses, not individual homeowners.

3. Property and Roof Ownership

Many landed homes have shared or uniquely structured roofs that make long-term PPA agreements difficult. Commercial buildings, by contrast, are easier to manage under a single legal entity.

4. Financing Model

PPAs depend on long-term electricity purchase guarantees. For residential properties, where energy use, ownership, or tenants can change over time while these contracts aren’t viable.

The Risks and Disadvantages of PPA

Even if PPAs were available for homes, they’d come with several drawbacks that make them impractical:

• No Ownership: You don’t own the solar system, so you can’t enjoy long-term savings or property value gains.
• Locked-in Contracts: PPAs typically last 15–25 years. You’ll be tied to one provider for decades.
• Pricing Risk: If market electricity rates fall, you may still be locked into a higher PPA rate.
• Transfer Issues: Selling your property? You’ll need to transfer the contract to the next owner—often a major hassle.

That’s why most homeowners prefer ownership-based models that keep control in their hands.

Why Rent-to-Own (RTO) is a Better Fit for Homeowners

If you like the idea of $0 upfront cost but still want to own your solar system, Rent-to-Own (RTO) is the smarter choice.

WIth GetSolar’s RTO plan, you get the best of both worlds:

• $0 upfront payment, just like a PPA
• Guaranteed performance and full maintenance coverage
• Ownership at the end of the plan, increasing your home’s value
• Flexible tenure options (5-year or 10-year plans)

What “Guaranteed Performance” Really Means

Unlike a PPA, where you pay per unit of electricity generated, the RTO plan guarantees your system’s performance throughout the contract period. Here’s how it works:

• Continuous Monitoring: GetSolar remotely tracks your system’s production to ensure it’s performing at expected levels.
• Full-Service Maintenance: All service visits and diagnostic checks are included—no surprise fees.
• Component Support: While your solar panels and inverter are already covered by the manufacturers’ warranties, GetSolar goes further by covering any faults beyond the manufacturer’s scope during your RTO term. This includes cabling, mounting hardware, and performance-related fixes.
• Performance Guarantee: If your system underperforms due to installation or equipment issues, GetSolar compensates you for the shortfall, so your expected savings are protected.

This means you don’t just get solar panels on your roof—you get a system that’s monitored, maintained, and financially backed for peace of mind throughout your plan.

In short, RTO gives you financial freedom, energy independence, and confidence that your system will deliver exactly what you signed up for—without the complexity of commercial contracts.

PPA vs Rent-to-Own vs Upfront Purchase

To help you compare your options at a glance, here’s how the main solar financing models differ:

The Bottom Line

While PPAs are an excellent financing model for factories, schools, and corporate buildings, they simply don’t fit the scale or structure of residential solar in Singapore.

For homeowners, Rent-to-Own delivers the same no-upfront-cost benefit along with ownership, transparency, and long-term savings.

If you’re exploring solar for your landed home, GetSolar’s RTO plan makes it easy to start saving from day one, without the fine print or red tape.

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