Solar panels are an increasingly common sight in Singapore. More businesses and homeowners around the island have deployed solar panels to build solar PV systems, generating on-site solar energy to power their operations.
You might wonder if it is just an overnight hype or a sustainable long-term solution. Or even if installing solar panels is worth it in the first place. To give you the short answer: Yes, it is worth it. Let’s take an in-depth look at the advantages of solar energy and find out why you need to deploy solar for your business.
1. Cheaper Electricity Bill
Harnessing the sun’s power is more cost-efficient than buying electricity from the grid. Depending on your business needs and preference, there are various options to start with solar PV system deployment. The two most common options are:
- Solar leasing or Solar Power Purchase Agreement (PPA). You engage a vendor to finance, operate, maintain and retain ownership of the solar PV systems on your rooftop. No capital expenditure or maintenance fee is required from you, and you get to enjoy the energy you generate at a discounted rate.
- Solar ownership. You finance, operate, maintain and retain ownership of the solar PV systems. You can engage a vendor for the installation process, but you will fully own the energy you generate.
2. Avoid Carbon Tax
Carbon tax is a carbon pricing scheme to encourage businesses to reduce their emissions. This tax is currently applied to all sectors of the economy at S$5 per tonne of CO2. The Singapore government is planning to raise the carbon tax to $50-80 per tonne of CO2 by 2030.
By deploying carbon-free solar energy, you can reduce your GHG emissions and avoid being charged with the increasing Carbon Tax. That means more savings for your business!
3. Maximise unused roof space
You can now fully utilise unused space, such as your roof and turn it into a power-generating device. Especially in a country with abundant sunlight, such as Singapore, deploying solar on the roof is a no-brainer. With various types of panels to choose from, you can always build a solar PV system that suits your business needs.
4. Low Maintenance
Contrary to popular belief, solar PV systems actually require very little maintenance. The most common maintenance required is cleaning dust and debris accumulated on your panels. Keeping solar panels clean will ensure optimal sunlight absorption. You should also carry out annual inspections to ensure everything is working normally.
5. Worry less about rising energy cost
Installing solar panels means investing for the future. With reliable generation and low maintenance costs, part of your energy solutions is covered for the near future. It helps to reduce your exposure to the ever-increasing energy price and gain more certainty when calculating your overheads.
6. Earn points towards BCA Green Mark and other sustainability certifications
Deploying solar PV systems helps you to earn points towards BCA Green Mark, depending on your building classifications.
- For the Energy Efficiency section for BCA:GM2021, utilising on-site renewable through solar PV system deployment increases your energy efficiency, which allows you to obtain Super Low Energy, Zero Energy, or Positive Energy rating. Please refer to the BCA Green Mark Energy Efficiency Technical Guide for more information.
- For the Resilience section for BCA GM:2021, new and existing non-residential buildings can acquire 1 point for solar PV system deployment. Please refer to the BCA Green Mark Resilience Technical Guide for more information.
7. Reduce your carbon footprint
Solar is renewable energy, which means it does not emit carbon in its generation process. Therefore utilising solar will help you to reduce your carbon footprint, which falls under Scope 2 emissions(indirect greenhouse gas (GHG) emissions from the purchased electricity).
8. Contribute to Singapore Green plan
The Singapore government has targeted to harness 1.5 GWp of solar energy annually by 2025 and at least 2GWp annually by 2030. To put this into perspective, 1.5 GWp of solar energy can power more than 260,000 households in Singapore annually. By generating your own solar energy on-site, you are supporting the transition toward cleaner energy sources.
9. Earn by supplying excess energy to the grid
You can also earn from the electricity you generate with your solar PV system. Suppose you generate more than you consume at one time. In that case, you can supply them back to the grid under the Enhanced Central Intermediary Scheme (ECIS). You will be compensated based on the prevailing half-hourly wholesale energy prices for the excess energy you supply.
10. Show your customers that you are supporting green renewable energy source
Modern consumers are adopting more sustainable behaviours. From cutting down single-use plastics to choosing eco-conscious products and brands, businesses should adapt to the changing market needs. By showing your customers that you generate your own renewable energy, you can distinguish yourself from the competition and be the leader in your category as the leader in sustainability.
11. Save the earth
You must have noticed how hot Singapore has become. The temperature rise happens because of the greenhouse gases emission that traps the heat. Greenhouse gas emission is a byproduct of conventional energy generation, where fossil fuels are burned to generate electricity. This process contributes to climate change, resulting in wildfires, heatwaves and melting glaciers worldwide.
By harnessing solar energy, you are reducing your dependence on conventional energy that emits greenhouse gases and accelerates climate change. If we switch to cleaner energy sources, we can slow down or even stop climate change before it is irreversible.
12. Bonus: Fulfill your lease extension requirements for JTC tenants:
Solar deployment is mandatory for JTC tenants with more than 800sqm of roof space and a remaining lease period of 15 years or more. You can read more here.
Conclusion
Installing solar panels will help your business to save on utility bills and kickstart your sustainability journey. If you want to deploy a solar PV system, we are ready to help with Flo Solar Solutions. We will finance, install, and maintain the solar PV systems on your rooftop, and you get to enjoy the energy it generates at a preferred solar tariff, which is much lower than the grid electricity.
If you are interested in Flo Solar Solutions, you can read more here or leave us a message, and we will get back to you as soon as possible.