• Cost Savings: Using solar energy can help consumers save costs since it is generally comparable to or cheaper than grid electricity. Consumers can also use solar to offset their electricity consumption or sell excess solar-generated electricity to the grid in exchange for payment.
• Environmental Sustainability: Solar power generation is zero carbon, contributing to lower greenhouse gas emissions. This helps in creating a cleaner and more sustainable environment.
• Enhanced Energy Security: Harnessing solar energy domestically helps enhance our energy resilience and reduces reliance on importing other energy sources.
• Price Stability: With solar output typically coinciding with periods of high energy usage, it could help lower peak demand and allow electricity prices to become more stable.

The costs of installing solar PV system depends on the size of the system and how the system is deployed (e.g. on rooftop or integrated into the building facade). Consumers can recover their upfront installation costs over the system’s lifespan through the electricity generated.

Upfront Costs

• The upfront cost for a rooftop PV system can range from S$1,000 to S$1,600 per kilowatt peak (kWp). Smaller systems generally cost more than larger ones.
• For example, a 10 kWp residential rooftop PV system can cost around S$1,660/kWp while a 1,000 kWp industrial rooftop PV system costs around S$1,009/kWp. You can refer to SERIS Solar PV Roadmap for more details on the system costs.

Recurring Costs

• The annual operation and maintenance costs for residential rooftop PV systems typically range between ~1-2% of the system cost.
• It is recommended that the maintenance works for solar PV system are carried out every six to twelve months

Payback Period

• The average payback period varies depending on factors such as size of your system, electricity usage patterns and overall electricity consumption.
• For residential solar installations, it is about 7 years. Consumers with higher electricity consumption levels and larger solar PV systems may see shorter payback periods of around 4 to 5 years.

Cost of Generating Electricty

• Currently, the cost of generating electricity (known as Levelised Cost of Energy, LCOE) for small-scale rooftop solar PV systems is estimated to range from around $0.11/kWh - $0.15/kWh in Singapore.
• You can calculate your LCOE using the LCOE calculator developed by the Solar Energy Research Institute of Singapore.