More homeowners are taking advantage of the declining prices of solar panels

COST OF SOLAR PANELS

The combination of increased competition and falling solar panel prices now offers homeowners a wide range of options. In the last two years, prices have dropped by around 60%, thanks to an oversupply and improved efficiency. In 2020, the wholesale price for solar panels was approximately US$0.22 per peak watt (Wp), rising to US$0.30/Wp in 2022 due to the energy crisis and material shortages. Currently, the price has fallen to between US$0.10 and US$0.12/Wp, according to industry experts. Although solar panel prices are unlikely to fall further, their efficiency is expected to continue improving. Solar systems can last over 25 years and may reduce a household’s electricity costs by at least 30%, depending on the number of panels and power consumption. The Energy Market Authority (EMA) estimates that the cost of using solar energy in homes ranges between S$0.11/kWh and S$0.15/kWh, compared to SP Group’s electricity rate of S$0.30/kWh.

SOLAR DEPLOYMENT IN SINGAPORE

Singapore has seen a significant expansion in solar energy, with installed capacity increasing tenfold over the past seven years. The EMA reports that the country is on track to reach its target of at least two gigawatt-peak of solar energy by 2030. Solar panel installations rose fivefold between 2016 and 2023, largely due to non-residential demand. Town councils and public housing have been major contributors, with over 3,600 solar panels installed by last year. Solar panels have been fitted in more than 3,300 private properties—more than double the figure from 2020. As of February, solar panels have been installed on approximately 3,900 Housing Board (HDB) blocks, with the remainder to follow in phases over the next three years. The solar power generated in HDB estates supports services such as lifts and lighting, with excess energy supplied to the national grid. Current solar capacity in these estates has reached 455 megawatt-peak, enough to power about 114,000 four-room flats, nearing HDB’s 2030 target of 540 megawatt-peak.

SAFETY CONCERNS: HIRING LICENSED CONTRACTORS

With the rise in residential solar installations, experts are warning of potential safety risks if panels are installed by unlicensed contractors. In the first half of this year, the Singapore Civil Defence Force responded to three fires related to solar panels, compared to just one incident in 2020. Fires can result from poor design, defective components, improper installation, or excessive direct current flows. Industry experts are advising consumers to hire licensed contractors to avoid these risks. Eric Lau, a renewable energy specialist, recommends choosing companies that are registered and have certifications in safety and installation.

A BRIGHTER FUTURE

Dr. Thomas Reindl, deputy CEO of the Solar Energy Research Institute of Singapore, emphasized the need for Singapore to maximize solar initiatives, such as using larger canopies and floating panels in marine areas, to boost energy independence and efficiency. He noted that solar power is the most cost-effective way to generate electricity in many regions, including Singapore, and that increasing efficiency through innovations like tandem solar cells will further enhance output. Solar energy not only helps decarbonize the electricity sector but also reduces reliance on imports, with projections that it will meet 10% of Singapore's energy needs by 2050.

(Source:CNA)

At Green Union, we are experienced in both designing PV system as well as excuting our designs. With the safety features deployed in each project, we can minimize any associated risks. We also strived to find better suppliers with more cost-effective yet 1st-tier soalr panels. We also have EMA-recognized licensed electric workers (LEW) to inspect and commission the system when each project completes.

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