Solar Energy Adoption Surges Among Homeowners in Singapore

In recent years, the adoption of solar energy has gained significant momentum, particularly in urban areas where homeowners are increasingly looking for sustainable and cost-effective energy solutions. As the prices of solar panels have dropped dramatically, more individuals are considering the installation of these systems to harness the power of the sun. This trend is not only beneficial for the environment but also offers financial advantages for homeowners.

Take the case of Marcus Phuah, a homeowner who recently made the switch to an electric vehicle. Concerned about rising electricity costs, he decided to install solar panels on his home. His system is generating between 50 to 90 kilowatt-hours (kWh) of energy, while his household's average monthly consumption is only about 63 kWh. This means he is not only meeting his energy needs but is also in a position to contribute excess energy back to the grid. Phuah's experience highlights a growing trend among homeowners who are looking to reduce their electricity bills and carbon footprints.

The cost of solar panels has seen a remarkable decline, dropping by approximately 60% over the past two years. In 2020, the wholesale price of solar panels was around US$0.22 per peak watt, which increased to US$0.30 in 2022 due to an energy crisis and material shortages. However, prices have now fallen to between US$0.10 and US$0.12 per peak watt, making solar energy more accessible than ever.

Despite the lower costs, the initial investment for solar panel installation can still be a barrier for many homeowners. The average installation cost for a terrace house in Singapore is about S$20,000. This upfront expense can deter potential buyers, as they may be hesitant to commit to such a significant financial outlay. To address this issue, some companies have introduced rent-to-own models, allowing homeowners to pay a flat monthly fee for solar power without the hefty initial costs.

Industry experts suggest that homeowners can expect to break even on their solar investments within five to six years, with some even starting to earn money from excess electricity generated. The demand for solar installations has surged, with companies like Eigen Energy reporting a 20% growth in installations, driven by competitive pricing and rising electricity costs.

However, the rapid growth of the solar market has also led to increased competition, with many new companies entering the field. This has raised concerns about the quality of installations, particularly if performed by unlicensed personnel. Safety is paramount, as improper installations can lead to fires. In fact, the Singapore Civil Defence Force responded to three fires involving solar panels in the first half of this year, a significant increase from previous years.

As the solar energy landscape continues to evolve, it is crucial for homeowners to conduct thorough research and choose reputable companies for installation. The benefits of solar energy are clear: reduced electricity bills, a smaller carbon footprint, and the potential for financial returns. With the right precautions and informed decisions, homeowners can enjoy the advantages of solar energy while contributing to a more sustainable future.