Should I go solar when energy prices have dropped in Singapore?
The SP Tariff had recently been revised from 0.2302/kWh to 0.1960/kWh. Does this mean that it might not be worth it to get a solar installation now that rates are lower? Also, is it worth it to install a solar system with the opening of the electricity market? We, at SolarPVExchange, will help unravel these mysteries so that you get a clear understanding before you make your decision.
Should I go solar when energy prices have dropped in Singapore?
The lowest SP Tariff in the past 15 years was at 16.1 cents, highlighted in green and the highest was at 28.8 cents highlighted in red.
We have seen a drastic drop in the regulated tariff for Q3 of 2020 at 19.60 cents. This is a 19% drop since the highest tariff rate in recent years at 24.20 cents. Is this a valid concern in deciding to get a solar system?
According to SP's historical regulated tariff rates from the past 15 years, the average tariff across 15 years has been 22.80 cents/kWh. Considering the cost of inflation, we can expect to pay around 22 cents or more across the years, regardless of the condition of the economy. As solar panels are long term investments with warranties up to 25 years, lower rates at the present might not be such a bad thing after all. A solar system is also able to serve as an additional revenue stream for you, so the earlier you install one, the faster you get to enjoy it's returns!
During the COVID-19 period, one good thing about buying from SolarPVExchange is that you will be able to pay for your residential solar system via a zero-interest instalment plan for up to 36 months* with a UOB Credit Card! This allows you to save as you pay, without the need to part with a lump sum of money at one go. *Terms and conditions apply.
Can I benefit from a solar system even though I signed up with an electricity retailer?
Yes! Since the start of the Open Electricity Market (OEM) initiative by EMA, consumers have the freedom to choose their preferred energy retailer. Regardless of which retailer you sign up with, the extent of your savings is largely dependent on the energy consumption patterns of your household rather than the company you choose as you have the freedom to opt in or out.
The benefits of a solar system are illustrated below.
1) Lower Energy Consumption
If the bulk of your energy consumption is in the day, eg; 7AM to 7PM, daytime energy consumption of your house will drop as it draws energy from the solar system. This will translate to a lower energy bill at the end of the month. You will also be reducing reliance on the local energy grid. You will still earn from excess energy sold, though it might be minimal.
2) Earning from Selling Unused Solar Energy
If the bulk of your energy consumption is at night, eg; 7PM to 7AM, with little to no energy use in the daytime, the solar system will generate energy and export it into the local grid automatically. This is almost like a passive income source which requires little to no effort to earn and maintain, with the exception of paying for the system and servicing it. You will still be able to rely on solar energy especially during the weekends when there is higher demand for energy during the day.
Help! My energy retailer doesn't allow solar installations. What should I do?
After the Open Electricity Market (OEM) initiative was launched there have been a few drawbacks for consumers who are eager to install a solar system.
• Only a handful of energy retailers are willing to accept solar installation requests
• You are tied to the contract durations and your energy retailer as most other retailers do not wish to process the applications of houses with solar installations.
Fortunately, we have a few workarounds to this issue. Despite this roadblock, SolarPVExchange has helped many clients to go solar and prevent unnecessary costs.
Even if you had signed up with another electricity retailer, you will still be able to gain tremendously from installing a solar system. The SolarPVExchange team will advise you on the best course of action to take that maximizes your returns. As there is no "one-size-fits-all" answer, please drop us an email at enquiries@solarpvex.com and we will get back to you.