Forum: Enough economic incentives for home owners to install solar panels
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We thank Mr Lim Poh Seng for the letter “ Offer subsidy to install solar panels on landed properties
Solar power is currently the most viable renewable energy source for electricity generation in Singapore. Our solar deployment has grown significantly, with installed capacity increasing by about 10 times in the last seven years. These include solar panels installed by home owners, who enjoy cost savings by offsetting their electricity consumption and selling excess electricity to the grid.
There are sufficient economic incentives for home owners to install solar panels. The payback period for home solar power systems has improved to as short as five years due to the decline in cost of solar panels. Owners of solar power systems are also able to sell the renewable energy certificates (RECs) generated from solar energy. To do so, the solar power system would need to be registered with an REC issuer or a third-party platform.
Home owners can check with solar power vendors or REC issuers in Singapore for more information.
In addition, some solar power vendors offer “solar leasing” agreements or “rent-to-own” plans that can reduce upfront capex for the home owner.
We agree with Mr Lim that the adoption of more solar power in Singapore would be key to our energy transition journey. We will continue to support solar adoption across all sectors in Singapore.
Toh Wee Khiang
Director, Hydrogen and Sustainable Energies Office
Energy Market Authority
