Cheaper, better solar panels are here. But maximising adoption in Singapore will take creativity

Cheaper, better solar panels are here. But maximising adoption in Singapore will take creativity Singapore basks in year-round sun, yet only around 8 per cent of landed homes and condominiums have installed solar panels as of 2025. As costs fall and technology evolves, what will it take for residences and businesses to make the most of what's shining down on them? Step into Mr Goh Jing Hwee's house and you will be greeted by an array of installations that harness the power of the sun. Solar-powered clip-on lights line the stairway, solar-powered bollard lights dot the garden and 60 solar photovoltaic (PV) panels cover the roof of his residence. When the 63-year-old semi-retiree rebuilt his home in the central part of Singapore in 2021, he designed a flat roof specifically for a solar panel system that cost around S$30,000. Almost a decade before that, a much smaller solar panel system had cost him three times as much. "In 2012, when I put the solar panels, it was very expensive … (Now) the cost has gone down by as much as 60 to 70 per cent," Mr Goh said, adding that he expects to recoup his investment in about eight to nine years. On an average day, around 60 per cent of what his rooftop system generates covers all his household's daytime electricity usage, with the excess electricity generated sold to Singapore's national power grid. The falling costs and improving efficiency have made solar solutions an easy sell for homeowners such as Mr Goh and businesses grappling with rising electricity bills. When Mr Eu Jun Hao, manager at Oriental Aquarium, was planning to move his aquatic plant farm from Lim Chu Kang to Sungei Tengah seven years ago, he anticipated that his electricity usage would surge as he modernised production techniques. The farm's water recirculation system in the new semi-controlled greenhouse would require more electricity than his previous site, where plants were grown in the open air. The 429 installed panels have since cut his electricity bill by around 40 per cent compared to buying fully from the national power grid, his provider Union Energy stated. Mr Eu is on a 14-year power purchase agreement, a long-term contract where a solar provider finances, installs and maintains a solar energy system. The property owner avoids a large upfront cost and buys the generated electricity from the provider at a fixed rate. "We were glad that we made this choice, when we saw the substantial savings, especially in the current climate's electricity prices," Mr Eu said. In response to queries from CNA TODAY, Ms Violet Chen, director of solar and grid solutions at the Energy Market Authority (EMA), said that solar deployment among private commercial, industrial and residential users has seen strong growth. Private sector solar deployments have risen from 1,489 in 2021 to 2,321 in 2025 – a 2.5-fold increase in total installed capacity. Separately, the total installed capacity of solar PV installations have expanded almost five-fold for private residences – which includes landed properties and condominiums – from 1,749 installations in 2021 to 6,912 in 2025. In response to CNA TODAY's queries, the Housing and Development Board (HDB) said that it has installed solar panels on around 5,300 housing blocks, or half of all HDB blocks, as of December 2025. This represents a solar capacity of 455 megawatt-peak (MWp) across its estates, equivalent to powering about 114,000 four-room flats. "The solar energy harnessed is first used to power common services, such as lifts, lights and water pumps in the day, with excess energy channelled back to the grid," HDB said. Solar firms reported a steady climb in demand from private homeowners and businesses wanting to guard against the rise in electricity tariffs, particularly in the past three months since the Iran war began. For PMCE Global, its founder and director Satish Prasath said that his firm completed a record 80 solar installation projects in April alone. Where the company handled around 24 projects in its first year a decade ago, it now completes roughly 400 a year, with residential clients making up about 85 per cent of the business. Yet for all the momentum, solar adoption remains far from mainstream in Singapore. Figures from the Singapore Department of Statistics showed that there were 69,200 landed properties in 2025. In parliament in May, Minister of State for Trade and Industry Gan Siow Huang said that around 8 per cent of all private residential buildings – or landed properties and condominiums – have installed solar panels. Among condominiums, less than 2 per cent of the management corporation strata titles (MCSTs) have solar panels installed. This was based on the Building and Construction Authority's 2026 public consultation on proposed areas of review for the Building (Strata Management) Act. In a country drenched in sunshine year-round, technological innovations and new financing models have made the case for solar stronger – and cheaper – than ever. However, would-be adopters still run headlong into various anxieties, red tape and the stubborn reality of a land-scarce nation. So what will it take for Singapore's homes and businesses to truly step into the light – and for one of the world's sunniest cities to make full use of its most viable renewable energy source? STRIDES IN SOLAR ENERGY USAGE Being close to the equator with very little seasonality, Singapore enjoys strong, relatively consistent sunshine all year round. However, one major challenge is the lack of land compared to countries such as Australia, where vast rural expanses are well-suited for sprawling solar installations. Still, Singapore does have substantial "built surface area" to host solar panels – namely rooftops, building facades, carparks and infrastructure corridors. This was the view of Mr Rob Jones, renewable energy leader at risk advisory firm Marsh Asia. The cost of installing solar panels has also dropped significantly in the past decade, driven in part by technological and manufacturing advancements, particularly in China, the now undisputed leader in solar PV production. Dr Thomas Reindl, deputy chief executive officer of the Solar Energy Research Institute of Singapore (SERIS) at the National University of Singapore (NUS), noted that solar electricity can now be generated at 7 cents to 13 cents per kilowatt-hour (kWh), depending on the size and complexity of the installation. "This compares to around 30 cents per kWh that households pay in Singapore right now, so solar power is less than half of what we pay for electricity," he said. Thus, the government does not subsidise residential rooftop solar panels, because economic conditions are "very favourable" for property owners to consider installation, Ms Gan told parliament in May. She also said that eligible private buildings may tap the Green Mark Incentive Scheme for Existing Buildings 2.0 to get grants, to lower the upfront cost of energy improvement works, including solar panel installation. Mount Elizabeth Hospital is among the businesses that have embraced solar power. It installed 381 solar panels in a major campus overhaul, which was unveiled in April this year. They are positioned above selected wards to power the hospital's public and common areas. The installation is projected to generate around 1.4 million kWh of electricity yearly, reducing the amount of electricity needed to be bought from the national power grid. Ms Lim Xueni, the hospital's director of operations, said the upgrade was driven by sustainability goals, rising electricity tariffs and the support of government policies including green loans. Solar financing models have also advanced. Mr Lim Wen Bin, a partner in infrastructure advisory at consultancy KPMG in Singapore, said that these offer choices for clients wanting to avoid a large capital expenditure up front. One company behind such new financing models is GetSolar, one of the first firms to launch the rent-to-own model for solar panels in Singapore, promising its clients zero upfront cost, zero hassle and savings from the start. Ms Kimberly Hoong, the firm's residential sales lead, said: "Instead of having to pay one big lump sum upfront for a solar panel system … we remove that high upfront cost, and we also service our customers for the next five to 10 years." Under its 10-year plan, customers pay nothing upfront and instead pay a fixed monthly fee, not tied to any interest rate, that is typically lower than their monthly electricity savings. A shorter five-year plan lets customers pay 50 per cent upfront for those who want to own their system sooner or reduce their total lifetime cost. For Mr Ma Chin Chew, owner of N&N Agriculture, a pioneer of pasteurised egg production in Singapore, harnessing sunlight is crucial for his farm in Lim Chu Kang, especially since he plans to expand his fleet of electric delivery trucks. "Currently, all the (hen) houses are closed houses, so they depend very much on ventilation fans 24/7. We have about 18 houses, so it's a high-energy-usage business. "We also have egg processing and a feed mill using a lot of power." In 2018, Mr Ma spent more than S$600,000 to install a roughly 400 kWp system on one roof, but poor after-sales service left a faulty inverter unrepaired for nearly two years, with hefty service charges to boot. He thus switched to a 2 MWp system under a power purchase agreement with Union Energy, which locked in electricity costs at a negotiated long-term rate. He estimated that he now saves around S$45,000 a month with a 25 per cent reduction in his electricity bill, which amounts to around half a million dollars in savings a year. Over at Boathouse Residences, Mr Mohd Rizal Abdullah from its managing agent RealtyLink Consultancy said that the shorter return-on-investment period for solar installations and the increasing volatility of energy market prices made adopting solar power not only an "environmentally responsible option, but also a financially strategic one". The condominium is now on a lease model and pays a fixed monthly fee of S$7,400, excluding Goods and Services Tax, to the vendor. It has been consuming about 180,000 kWh less electricity from the national grid since the installation in March 2025. NOT ALL FUN IN THE SUN Despite the economics of solar power improving, users looking to make the switch often find the path fraught with obstacles. Even institutions that have committed to solar energy find their ambitions bumping up against practical constraints. At Mount Elizabeth Hospital, rooftop real estate must be shared with air-conditioning and mechanical ventilation infrastructure. Ms Lim, its director of operations, highlighted the physical space limitations, upfront capital required and a lack of expertise in evaluating and monitoring solar projects after installation as key barriers to solar adoption among businesses. Another common sticking point for businesses is the mismatch between a solar contract's lifespan and a company's lease. Given that a power purchase agreement typically runs from 10 to 20 years, Ms Ellen Teo, chief executive officer of Union Energy, said that companies without security of tenure over that period may baulk at signing on for solar power. Roof condition is another barrier, because some businesses have to take on six-figure refurbishment costs before panels can even be installed. For small- and medium-sized enterprises, another wrinkle is persuading older business owners to commit to a 15-year contract when succession planning is already a concern. Ms Teo said that Union Energy tries to work around these constraints by offering shorter tenure arrangements at higher rates, which still provide savings compared to electricity tariffs, or structuring reroofing solutions into solar packages for buildings with ageing roof conditions. And then, there are condominiums and multi-tenant commercial buildings, which face even more complex hurdles. Unlike landed homes, these buildings have master meters that record overall electricity consumption, while sub-meters track individual units or tenants. Under this metering arrangement, the figure for common services consumption is derived by subtracting the sub-meters' readout from that of the master meters. "This sub-metering arrangement under the existing system could result in billing errors that affect residents and tenants when excess solar power is exported to the grid," Ms Chen from EMA said. In practice, this means that solar energy generated on-site is generally used to offset electricity consumed at shared facilities, and excess energy cannot be sold back to the grid. However, Ms Chen said that national grid operator SP Group is working on a set of complex system changes to address this. She suggested that building managers can handle their solar output carefully to avoid billing complications. Alternatively, SP Group offers a direct-to-grid connection option, where the solar system connects straight to the national grid and bypasses the shared meter entirely. This has been successfully rolled out at Bishan business park Midview City. There is growing interest among condominium managers and residents to adopt solar panels, but there are hoops to jump before such moves can be made, Dr Rex Yeap said. He is vice-chairman of The Interlace condominium's MCST and vice-president of the MCST Association of Singapore. For example, the MCST of each condominium would have to iron out details such as how liability might be split between the vendor and the MCST in a potential roof leak. They might also have to contend with narrow rooftops that make installing solar panels on many condominiums commercially unviable. The slow process in seeking approval for installing solar panels in condominiums through annual general meetings – which can take up to a year – for a relatively small system may also be a deterrent for some larger solar firms, Ms Teo from Union Energy said. "Condominiums are a growing but very complex segment ... (they are) largely governed by MCST, which require longer gestation periods for projects to float, so not many solar installers would find it very worthwhile supporting this segment," she added. In 2025, Singapore, crossed its initial "2 gigawatt-peak by 2030" national target for solar power generation, the equivalent of generating enough energy to meet the annual electricity needs of around 350,000 households. Since then, it has raised the official national target to 3 gigawatt-peak by 2030, under the Singapore Green Plan. This amount of solar energy can generate 2,800 GWh of electricity a year, enough to power about half a million households a year, Ms Chen from EMA said. And there is indeed plenty of room for growing Singapore's solar energy generation. Mr Jotham Chan, head of residential from renewable energy and clean infrastructure solutions provider Eigen Energy, noted that although public infrastructure led the first wave of adoption, thousands of prime rooftops across commercial zones and landed housing estates remain completely untapped. His colleague, Mr Pradhan Rajoo, said that as solar energy becomes more widely accepted and proven, customer priorities have also shifted. From initial concerns centred around unfamiliar technology, system reliability and long payback periods, the focus has turned to aesthetics, roof compatibility and alignment with long-term property plans. Mr Rajoo, who is business development manager for commercial and industrial sectors at Eigen Energy, added: "Ultimately, the next phase of market growth will depend on how easily we can bring zero-upfront financing to the masses and maximise trickier roof spaces, turning solar panels into a standard, everyday feature for homes." A BRIGHTER FUTURE FOR SOLAR POWER? Overcoming obstacles to the broader adoption of solar energy and boosting Singapore's solar power generation is not just a matter of lowering costs and clearing red tape. It is also about transforming solar infrastructure, analysts said. Dr Reindl from SERIS said that Singapore will have to "think out of the box", such as embracing floating solar panels on water bodies, for example, the 60-MWp floating solar power plant on Tengeh reservoir. "Apart from inland reservoirs, we can also imagine floating solar in near-shore areas that are away from shipping routes and nature-protected areas." National water agency PUB has installed about 67 MWp of solar capacity, through rooftop PV systems on six facilities and floating PV systems on three reservoirs. There are plans to deploy future large-scale floating solar PV systems at Lower Seletar Reservoir and Pandan Reservoir. The 60-MWp floating PV system at Tengeh Reservoir, which began operations in 2021, consists of about 122,000 solar panels spanning 45 hectares, generating enough clean energy to power around 16,000 four-room HDB flats. Trials at the Tengeh Reservoir in 2016 saw floating PVs performing 7 per cent to 10 per cent better than typical rooftop systems, partly due to the cooler water surface and reduced shading. Since the rooftops of older HDB blocks were not originally designed for solar installations, retrofitting works had to consider optimal panel placement and wiring, without obstructing essential block services. Since May 2017, HDB has introduced solar-ready roofs for all new public housing blocks where feasible, incorporating features such as dedicated trunking, integrated support structures and service access routes on the roof, so that solar panels can be easily mounted and maintained. In the meantime, novel technologies such as ultra-lightweight "solar films" could unlock surfaces and structures previously unsuitable for solar, the experts said. "Suddenly, we can imagine that we have very large over-arching canopies that stretch over areas such as car parks, flood canals or even the very large port areas, Dr Reindl said. "One day, maybe we can even over-arch HDB blocks with solar canopies, which would also provide shade for the residents." At JTC, the industrial developer's SolarLand programme uses a flexible procurement approach that allows it to harness industrial land parcels earmarked for future deployment for solar generation. As of the first quarter of this year, 927 MWp solar capacity has been deployed across JTC buildings, vacant industrial land and its privately leased industrial properties – equivalent to powering more than 216,000 four-room HDB flats yearly. The agency has launched a tender to develop Singapore's first overhang solar PV system in Woodlands to harness void spaces between multi-storey industrial buildings. Though such technologies may take a while to become commonplace, many are studying new solar solutions, as they mature. In public housing, HDB is testing vertical solar PV panels integrated into the roof fascia at Parc Clover@Tengah and Parc Residences@Tengah. At resort island Sentosa, the Sentosa Development Corporation (SDC) has deployed PV cells across 40 rooftop spaces alongside efforts to achieve carbon neutrality by 2030. Mr Kelly Yoong, SDC's divisional director of corporate planning and development, said the programme has doubled initial targets, achieving a total solar capacity of 6 MWp, which would offset the carbon emissions from 100,000 hotel room-nights. Sentosa is also exploring innovative technologies such as Building Integrated Photovoltaics and solar pavements, Mr Yoong added. Some companies are also offering innovative solar solutions for households' daily use, even if larger solar PV systems may be out of reach. Mobile clean energy battery technology company Go Rental offers solar-powered battery and energy storage systems geared towards homes, businesses and events such as Formula One motor racing. The firm’s founder and managing director Colin Peh has seen demand for renting and buying basic mobile systems go up 40 per cent in the past six months, including from residents living in HDB flats. A solar energy system, comprising a one-kilowatt solar panel and a one-kilowatt battery, costs around S$2,000, and the stored energy can power a fish tank, charge a laptop or power a fridge. "We also provide bigger solar panels and home systems, but what we see a huge increase in is people buying for smaller use, for a little bit more resilience," Mr Peh said. One key area for growth would be the larger deployment of energy storage, for grid-scale batteries and behind-the-meter systems to manage intermittency, reduce curtailment risk and increase the reliability value of solar, Mr Jones from Marsh Risk said. A partnership between EMA and SP Group saw Singapore deploy its first utility-scale energy storage system at a substation in October 2020, with a capacity of 2.4 MW. A solar forecasting model that can anticipate solar power output in advance to manage intermittency issues was also rolled out through a S$6.2 million research grant to a consortium led by NUS. However, better technology may not automatically translate into buy-in. Those who made the switch to solar power said the decision was not simple even though costs declined and solar panel technology improved. Some homeowners told CNA TODAY that they would only reconsider installing solar panels if there were substantial subsidies from the government to bring the break-even period down to as low as around two to three years, given the associated costs they might incur to renovate their old rooftops. Mr Goh the semi-retiree said the orientation and condition of a roof can significantly affect what a system can generate, adding that government subsidies could perhaps help nudge more homeowners over the line. Given the favourable orientation, height and flat surface area of his rooftop, he captures sunlight from early morning to afternoon. Hence, Mr Goh is keen to explore opportunities to store all the energy he collects – instead of selling it back to the national grid – to cover his nighttime electricity usage. Dr Yeap from The Interlace condo said more financial support from the government or solar companies to commission feasibility studies for an estate's rooftop capacity, structural stability, electrical integration, fire safety and expected system yield could make solar energy more attractive. Mr Mohd Rizal from RealtyLink Consultancy, which manages 60 properties in Singapore, suggested reducing the level of condominium resident support required for approving solar installations, from a special resolution to an ordinary resolution – as was done for electric-vehicle charger installations. Greater access to battery energy storage systems would help condominiums optimise their solar usage and better support growing demands for charging e-vehicles. "Overall, the appetite for solar power in the residential sector is growing," Mr Mohd Rizal said. "What is needed now is a more enabling ecosystem – one that combines regulatory support, practical financing and clearer implementation pathways – to help more condominiums make the transition with confidence." ALREADY "SOLAR-DENSE" SINGAPORE Even with all these ongoing hurdles, Singapore’s growth in solar capacity has exceeded expectations so far. The experts noted that its solar ambitions could hit a hard ceiling due to limited land and suitable surfaces for solar deployment. In the 2020 Update of the Solar PV Roadmap for Singapore by SERIS, it was estimated that if all suitable areas for conventional solar panels are used, the total techno-economic potential is as high as 8.6 gigwatt-peak. Ms Chen from EMA acknowledged that although solar energy is now the main source of renewable energy that can be harnessed domestically, it could at best meet up to around 10 per cent of the country's projected energy needs by 2050. "Singapore will therefore need to continue to pursue other decarbonisation pathways," she said. Ms Linda Zeng, a senior analyst in power and renewables at BMI, a unit of credit risk analysis firm Fitch Solutions, said that the economics are a lot more attractive for solar energy as costs have declined, with payback periods as short as four years. Based on BMI's forecasts, solar energy would make up around 5 to 6 per cent of the power mix by 2030. In the next 10 to 20 years, the needle will not move much in terms of solar power, playing a limited role in meeting Singapore's energy needs, she said. "This is why we're actively exploring alternatives including next-generation nuclear, geothermal and electricity imports, all of which are scalable," Ms Zeng added. If solar power were to be a larger part of Singapore's energy mix, Mr Lim from KPMG said it would boil down to not only maximising domestic capacity, but also importing electricity generated from clean sources from neighbouring countries. "Therefore, the subsea high voltage cables will be very critical. "The ASEAN power grid will be a very important part of the agenda, and allow lower cost renewables like solar to be a bigger part of our energy mix." And although it may not be fair to pit Singapore against land-rich countries, comparisons with other dense urban landscapes could prove instructive. Ms Zeng said that Singapore's solar density is the highest in ASEAN, at around 0.35kW per capita. This is more than 10 times higher than that of Hong Kong. Mr Prasath from PMCE Global said demand for solar solutions is in a "slow growth" stage, but in his experience, one satisfied customer tends to bring four more through word-of-mouth. "Even if the energy crisis (settles) … there will still be a huge demand for solar power … because Singapore needs to be energy-independent." Dr Reindl from SERIS said the fact that Singapore has already installed more than 2 gigawatt-peak of solar systems is no small feat for a city only 725 square kilometres in size. "We are very likely the most 'solar-dense' city in the world. "Over time, Singapore is likely to become a global leader in 'urban solar', utilising every available space in a highly innovative way."