Solar-Powered Lighting for Households and Commercial Premises

Mr Speaker, Sir, as at 1 January 2012, there were 157 grid-connected solar PV installations in Singapore with a total installed capacity of 5,546 kilowatts peak (KWp). This is almost three times the capacity compared to end of 2009, and it represents 0.05% of Singapore's total generation capacity.

Our principle is to price energy correctly. The right price signals will help to ensure greater energy efficiency and conservation. Hence, we do not subsidise energy through, for example, feed-in tariffs, as this would lead to the inefficient use of a scarce resource.

Also, there are challenges with the use of solar energy. It is an intermittent source, and we have limited land for large-scale deployment of solar panels. Nonetheless, we are investing in research, development and demonstration (RD&D) to build capabilities that can support greater adoption of solar energy. The Economic Development Board's (EDB) Clean Energy Research and Test-bedding (CERT) programme has set aside $16.6 million for Government agencies to work with private companies to develop and test-bed clean energy solutions, including solar, for Government buildings and facilities in Singapore. Another $20 million has been set aside for the private sector through the Solar Capability Scheme (SCS), to offset part of the capital costs to install solar technologies in energy-efficient commercial and industrial buildings. This seeks to build capabilities and encourage innovative integration of solar panels into such buildings.

Last year, the Housing Development Board (HDB) announced a pilot solar leasing scheme for 40 HDB blocks in Punggol – Senior Minister of State Lee Yi Shyan elaborated on some of the projects earlier. And under this test-bedding arrangement, HDB supported part of the start-up costs, while the commercial partner designed, financed, installed, and is now operating and maintaining the solar PV installations, offering the Town Council electricity at a rate not higher than the retail electricity tariff.

All these efforts will allow us to harness solar energy to its full potential when it becomes a cost-competitive option for Singapore.

Yes. I just want to know what sort of blueprint we have to develop our local abilities to be able to export our expertise in solar energy installation.

Thank you, I understand. I just want to elaborate to make it very clear. First, solar as an option for us, we continue to look at it as we do all other energy options because we cannot rule anything out in the context of energy security for Singapore.

Secondly, solar energy in the context of meeting Singapore's basic energy needs has limited potential for the reasons I have elaborated – its intermittency and the large land take that is required to meet our energy needs through solar puts some natural limits on it. Our investment in R&D is precisely in order to develop capabilities in this space. We are working with the private sector through our research institutes. And I think in the long term there will be potential, therefore, to collaborate with the private sector and to potentially export that expertise.