Retrofitting for energy efficiency: Building owners can tap $63m scheme

Building owners can tap a $63 million incentive scheme to retrofit their buildings and make them more energy efficient from the second quarter of this year.

Under the Green Mark Incentive Scheme for Existing Buildings 2.0, building owners can receive grants based on how much emissions are reduced through upgrading older systems.

Announcing the scheme yesterday, National Development Minister Desmond Lee said it is a significant enhancement from its earlier incarnation as buildings have to meet a higher standard of energy efficiency to qualify for a grant.

The scheme, which will also be expanded to include residential and light industrial buildings, comes on the heels of the Building and Construction Authority's (BCA) $100 million Green Mark Incentive Scheme for Existing Buildings introduced in 2009.

Mr Lee said more than half of Singapore's buildings that are over 20 years old have not been retrofitted. "Retrofitting older buildings costs a lot more upfront, and it may take several years to recoup this investment," he noted.

Ms Tin Pei Ling (MacPherson) and Ms Mariam Jaafar (Sembawang GRC) had asked what BCA will do to reduce emissions.

Under the new scheme, building projects that pursue higher standards of energy efficiency will be eligible for higher rates of funding.

For instance, buildings that achieve the highest Green Mark rating of zero energy after retrofitting will get $45 for each tonne per carbon dioxide-equivalent (tCO2e) reduced, capped at $1.2 million.

Those that achieve the super low energy rating will receive $35 per tCO2e reduced, capped at $900,000, while those that get a platinum rating will receive $25 per tCO2e reduced, capped at $600,000. Funding is also capped at 50 per cent of the retrofitting cost, whichever is lower.

The grant will be disbursed in two tranches, with 30 per cent of the estimated amount given out when the works begin.

The remaining 70 per cent will be given out upon attaining the certification.

Owners can opt to upgrade the cooling system or install solar panels, based on the strategies or technologies that are most appropriate for their building.

Privately owned buildings with a gross floor area exceeding 5,000 sq m can tap the scheme.

The Green Mark scheme was revised last September to set higher sustainability standards to be certified green, and emphasise other sustainability outcomes like reducing carbon emissions.

Separately, Minister of State for National Development Tan Kiat How said building owners and developers will also be able to tap a $30 million grant from the second half of this year to help them adopt technologies as part of facilities management.

They will need to work with facilities management firms to install smart infrastructure such as sensors and intelligent building management systems.

The use of such services is expected to result in cost savings in areas such as security, cleaning and energy management.