Is it time to go solar now that energy prices just went up?
The SP Tariff had recently been revised from 0.1960/kWh to 0.2143/kWh. This is a 9.34% increase, compared to the previous quarter. What effect does this increase have for consumers in the Singapore energy market?
Now, some of you must be thinking, "It doesn't matter to me because I am subscribed to an energy retailer, and I am already paying lower rates."
Does it really not have any impact on you? So you don't have to worry about the energy price hikes right?
Well, we suggest that you read on before you make the decision of whether to go solar or not...
Impending hike in GST hike between 2021 & 2025 and annual inflation
With the impending hike in GST from 7%-9& in 2021 and 2025 (as mentioned by DPM Heng*) and taking into account national inflation, it is very likely that our costs of energy will increase over time as well and thus how can we then hedge ourselves from rising energy costs?
Is Solar a good way to hedge against rising energy costs?
Many building owners (commercial/industrial/residential) fret over the fact that solar investment takes between 4-7 years to payback, fixating on that fact and then deciding not to proceed. What they fail to realize is that, solar returns are almost guaranteed as long as the sun shines (unless you bought a dud from an untrustworthy installer) and the payback starts right from the moment your system is commissioned! And if the energy tariffs doubles or GST hikes again (hopefully not), your payback period shortens immediately and you will be getting your money's worth much earlier.
So in a nut shell, going solar will help you (partially) hedge against any rising energy costs/GST hikes and this starts the moment your system is commissioned.
More importantly, a well-installed solar PV system is meant to last for a long time (the panels are meant to last 20-25 years) and therefore you recovered your investment in the early years (payback period can range from 4-7 years pending on your system size and your energy tariff), the rest of the years are your savings/revenue pending on how you see it.
Some solar PV owners who have bought the system with us actually look at it from another angle: That is they paid their energy bills few years in advance and once they gotten back their initial investment (payback), the rest is free money into their pocket whenever the sun shines on their panels.
But I am already paying lower rates to an energy retailer
Even if you switched to another energy retailer with lower energy tariffs, owning a solar system will still reduce your energy consumption from the grid/retailer and thus providing you savings.
Last but not least, going solar is one way you can help contribute to fight climate change and requires everyone to rethink how they consume in a sustainable and responsible manner… We may not be around to benefit from this but well...
Anyway, if you are sitting on the fence (about your commercial/industrial/landed home) and are unsure, hit us up at email@example.com and we will be glad to share more info with you 😀