JTC looking into ways to make solar deployment viable for firms on short leases

SINGAPORE - The authorities are looking into new ways to make tapping solar energy more feasible for companies here amid Singapore's green push, said Minister of State for Trade and Industry Low Yen Ling.

Ms Low said in Parliament on Monday (Feb 28) that JTC Corporation is currently assessing ways to push solar adoption further, especially among lessees and tenants with shorter remaining leases.

She was responding to Workers' Party MP Leon Perera (Aljunied GRC), who had asked if JTC's mandatory solar deployment scheme can be expanded to all tenants, beyond those covered by the mandatory scheme.

The scheme, implemented since 2020, requires lessees that have a remaining lease period of 15 years or more, and have at least 800 sq m of contiguous rooftop area available, to carry out solar deployment.

"These requirements are needed to ensure that both the lessee as well as the solar vendor have sufficient runway and scale to amortise the upfront fixed investments into the solar panel installation," said Ms Low.

Noting that the requirements were established by JTC in consultation with vendors, and are in line with current market practices, Ms Low said JTC's SolarRoof programme currently has two models to encourage solar adoption.

First, through rooftop licensing, where lessees can lease their space to any solar vendor for solar panel installation for a rental fee.

Second, through solar leasing, where lessees allow vendors to install solar panels on their rooftops, with the lessees paying a discounted rate on the electricity generated by these panels.

The programme does not require any upfront capital outlay if JTC's appointed solar vendor Sembcorp Solar is used.

Ms Low added that JTC-owned buildings and vacant industrial land make up 224 megawatt-peak (MWp), or about 40 per cent of Singapore's total solar deployment of over 560 MWp as at the third quarter of 2021.

Asked by Mr Perera if more could be done to incentivise solar deployment among those not covered by the mandatory scheme, Ms Low said JTC is currently seeking new solar vendors who are able to service shorter contract periods, which will benefit lessees with shorter leases.

Such lessees might be put off by the high upfront cost of solar panel systems and concerns over short leases that prevent any return on investment, The Straits Times reported previously.

Ms Low added that under an upcoming expansion to the SolarRoof programme, rooftop licensing and solar leasing rates for shorter contract periods of less than 10 years will be made available.