Debated in Parliament on 5 Feb 2025.
Mr Yip Hon Weng asked the Deputy Prime Minister and Minister for Trade and Industry in view that households which sell electricity to the grid are paid significantly lower than the purchase price of electricity (a) whether the Ministry will conduct a review of its policies in order to create a more incentivising framework for private household solar power generation; and (b) what further steps will be taken to maximise the potential contribution of private homeowners towards Singapore's renewable energy goals.
In recent years, the Government has simplified and facilitated the installation of solar panels in private residential properties. With the declining cost of solar panels, the current payback period for a residential solar power system can be as short as five years. Installed private residential solar capacity has thus increased from around 11 megawatt-peak in June 2019, to around 59 megawatt-peak in June 2024. This is about 5% of total installed solar capacity in Singapore currently and in line with the estimated contribution of the private residential sector to Singapore's overall solar potential. We have no current plans to introduce further incentives for solar deployments.
As for the rate that homeowners receive for selling electricity, it depends on who they sell electricity to. If they sell electricity to SP Group, the rate is the regulated tariff net of the grid charge. The grid charge is collected by SP Group to recover grid maintenance costs. If they sell electricity to other retailers, the rate is based on the prevailing half-hourly wholesale electricity price, which varies depending on demand and supply conditions and does not include the grid charge.
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