Supermarket giant Sheng Siong plans to have the largest single solar panel installation in Singapore on the rooftop of its distribution centre in Mandai.

The 11,000 square metre installation will supply up to 1.2 megawatts when running at peak, and will be built by major solar energy firm Phoenix Solar. The system is expected to start producing electricity by the end of this year, and supply at least 15 per cent of the centre's consumption.

"The commercial and environmental returns of this project make it a viable business decision, which will continue to yield benefits for a long time," said Sheng Siong chief executive Mr Lim Hock Chee.

An industrial solar photovoltaic system, which turns the sun's light into electricity, typically pays for itself in seven to 10 years, a return period that has grown shorter in recent years due to lower panel costs.