With solar panel installation costs in the past 10 years having fallen by a whopping 89%, it is no wonder there is an increasing amount of homeowners & business owners alike seeking solar panel solutions in Singapore.
That said, we’ve noticed quite a bit of confusion in terms of understanding of what a good solar panel cost is, and why a lower cost is not necessarily (and most of the time), not better.
Your solar panel cost can vary based on a multitude of factors, such as roof type, type of solar panel, and more. And believe it or not, this is just the tip of the iceberg – the solar panels in your system actually do not contribute to the bulk of the costs of your system, which will uncover why in this article.
It can also be confusing navigating the different payment options, such as the traditional upfront purchase, or $0 upfront cost offers which was first offered by GetSolar in Singapore, but can now be found among many suppliers, such as FOMO Energy. These also affect the cost of your solar panel installation in Singapore.
In this article, we run through the rough estimates for solar panel costs in Singapore, factors that affect your solar panel cost, how to calculate your cost of solar, as well as how to gauge a good solar panel quote from your system.
In Singapore, despite sellback schemes being the only governmental incentive to install solar, it is generally still a worthwhile investment to do so. Although the conventional benefits of solar, such as a stable energy supply, is less pronounced in Singapore, Singapore has the 2nd highest electricity tariff costs within Asia-Pacific at approximately 31.20cents per kWh, and solar allows you to enjoy electricity at almost 1/3 the cost of this.
That being said, the upfront cost of solar is something that many property owners wonder about, and differs greatly from property to property. However, you can refer to the information below as a general pricing or range to look out for.
As a rough range, you can expect costs to be from S$18,000 to S$36,000 or more, and this is how costs may vary amongst different types of residential property.
The usual system size would be around 20 solar panels with an 8 9 kWp system. The installation area would be approximately 45m2. Your solar panel cost would be S$14,000 and is sufficient for average energy consumption of 900 kWh per month.
You may be able to install around 30 solar panels or a 14kWp system which will be able to cover an average monthly energy consumption of 1,400 kWh. This will cost around S$18,000 for the entire system.
Rooftop solar systems for bungalows would usually be around 50 solar panels, equating to a 23 kWp system with an installation area of 110m2. The average solar panel cost for bungalows would be around S$26,000 due to the high number of panels and large installation area.
There are primarily 3 ways to go about calculating the exact cost of your solar panel system, which vary drastically in terms of expertise required, time needed and more. We will be arranging our suggestions from the most recommended ways to least recommended ways.
More often than not, simply getting a proposal done by a local solar panel company should be more than sufficient to get an accurate quote. Typically, an engineer will come down for a site visit, and access different factors such as roof access, shading, and more, while also factoring in the material and slant of your roof. While this will give you the most accurate solar panel cost quote, this may take days to a few weeks depending on how popular the solar panel company is.
At FOMO Energy, we normally respond within 24 hours and have a dedicated support team round the clock to ensure all quote requests are answered promptly. If you wish to get a personalized quote, simply fill up our contact form, or message/ call us at +65 8061 0116.
Some companies, in order to expedite the quote generation process, have built in solar panel calculators on their websites. However, these quotes are often underestimated and inaccurate due to the following:
1. Assumptions About Sunlight Hours
Solar panel calculators often estimate the amount of sunlight hours a location receives per day, which is a generalized figure. In reality, sunlight hours can vary greatly depending on the time of year, weather conditions, geography, and local shading (e.g., trees, buildings).
Many calculators use a typical solar irradiance value (e.g., 4-6 hours of full sunlight), which may not always reflect the actual conditions in your area.
2. Roof Space and Orientation Assumptions
Calculators may assume ideal conditions for roof space (such as an ideal roof angle and orientation facing south in the northern hemisphere, or north in the southern hemisphere). In reality, the angle and orientation of your roof may be suboptimal for solar energy generation, leading to lower efficiency.
Obstructions, such as chimneys, skylights, or nearby buildings, can also reduce the available space for panels, which may not be fully accounted for in some calculators.
3. Panel Efficiency Variations
The efficiency of solar panels can vary significantly depending on the brand, model, and technology. While some calculators use average efficiency rates (e.g., 15-20%), the actual performance may differ depending on the panels you choose.
Some calculators might also use outdated information on panel technology, which could lead to inaccurate projections.
4. Energy Consumption Assumptions
Calculators generally ask for your average monthly electricity usage and assume it remains constant. However, actual energy usage can fluctuate seasonally, and appliance efficiency (e.g., LED bulbs vs. incandescent) can affect consumption.
The calculator may not account for future increases in energy demand (e.g., if you plan to purchase electric vehicles, install air conditioning, or add more energy-consuming appliances).
Unless you have prior expertise, calculating your solar panel cost is almost impossible. Even with knowledge of your roof size, factors such as roof slant, shading and even your interior electrical wiring system are things that need to be taken into account. It is often best to seek a quote as quotes are often free and do not require any upfront commitment.
At this stage, you might have either gotten a quote from a supplier already, or are looking to understand what you’re paying for. To understand how much your solar panel cost you, diving deep into the cost components of it.
The cost of solar panels, as well as the equipment needed, depend on the following:
The size of your solar panel system primarily depends on the available roof space and your household’s electricity needs. A larger system will have a lower unit cost per kilowatt-peak (kWp) but will be more expensive overall. To estimate your electricity needs, review your electricity bills from the past 3 months.
Solar panels can be installed on most roofs, but roof type and material impact the installation process and costs:
Note: Steep roofs increase installation complexity, requiring extra manpower and time, which raises labor costs.
The type of solar panels you use also determine the cost of your solar panel installation. Two main factors determine the solar panel cost — their technology and the brand. There are 3 main solar panel technologies: Monocrystalline, Polycrystalline and Thin Film.
While each has its pros and cons, monocrystalline solar panels are now the most frequently used for residential rooftop solar installations because they are the most space-efficient and have the highest efficiency.
Most solar installers in Singapore usually recommend panels made by “Tier 1” solar panel manufacturers. This tiering system was highlighted by Bloomberg New Energy Finance as a measure of a manufacturer’s reliability and consistency. Among “Tier 1” solar panels, their costs vary based on where they are manufactured, their efficiency and warranty durations.
The most popular solar panel brands used by installers in Singapore are Jinko, Trina, JA Solar and REC.
Believe it or not, however, solar panel equipment costs only amount to up to 50% of the total cost of your solar panel system! What actually contributes to the bulk (up to 65% to 70%) of your solar panel costs is actually the manpower involved to install your solar panels
In addition to the solar panels, your solar panel system will also definitely come with different parts, such as the inverter, isolators, and many more. These, together with the panels, add up to about 20% of the cost.
You might be wondering at this juncture – where does the bulk of the cost come from then? This is actually where manpower costs come in, which contribute to about 70% of total cost.
The reason why manpower costs are so expensive relative to the whole system is because solar installations are fundamentally a very niche and involve manpower intensive processes. These include:
The typical solar panel maintenance cost usually ranges from $300 to $500 per visit in Singapore. Your solar system installers may both clean your solar panels and conduct tests on your inverters and breakers. Similar to air-conditioners, we encourage solar homeowners to schedule an annual maintenance visit for your solar system.
Although installers do provide a contract or package covering the solar panel maintenance cost for the first 1-2 years (often referred to as a Defects Liability Period or DLP), installers do not provide free lifetime solar maintenance since most solar PV systems last for 25 to 30 years.
This means that if your solar panels requires replacement within the warranty period, the replacement panels will be provided for free. However, some contracts might require you to pay for the labour costs associated with the replacement work.
When it comes to warranties, most solar panels come with a 12-year product warranty and 25-year power output warranty. Meanwhile, solar inverters usually have a 5-year or 10-year product warranty. These warranties generally cover 1-for-1 replacements of any physically defective equipment.
Almost all solar panel systems these days also come with a free online monitoring platform or mobile app that you and your installer can use to track the performance and efficiency of your solar PV system. Monitoring your system regularly and solving issues promptly when they come up will reduce the chances of long-term damage to your solar panels. This can cut down unnecessary large expenditures in the future.
At FOMO Energy, we provide complimentary maintenance for all our customers under REConnect, which covers real-time fault detection & monitoring to ensure your solar panel system works for you round the clock. Interested to find out more? Simply WhatsApp us at +65 80610116 or fill up our contact form here!
The cost of your solar panel installation is also influenced by the pricing plan you choose. While most solar panel companies in Singapore primarily offer upfront purchase models, FOMO Energy offers more flexible financing options, allowing customers to pay for their solar panel systems over a 5-year or 10-year plan.
The main difference between these plans lies in the upfront costs and the length of the workmanship warranty that comes with each option. With a 5-year plan, you typically pay 50% of the total cost upfront, which means lower initial payments, but the overall cost of the system will still be cheaper compared to the 10-year plan. However, the workmanship warranty on 5-year plans is usually shorter, which may also mean fewer years of complimentary servicing and free maintenance.
In contrast, smaller upfront payment and spreads the remaining cost over a longer period. This option generally includes a longer workmanship warranty and more extensive post-installation support, including free maintenance and servicing over the course of the plan. The 10-year plan may be a better choice for those who value longer-term protection and peace of mind.
Ultimately, the decision between a 5-year and 10-year plan comes down to your individual priorities. If you prefer a more affordable upfront investment and are comfortable with a shorter warranty, the 5-year plan may be ideal. On the other hand, if you prioritize extended warranty coverage and complimentary services, then the 10-year plan might better align with your needs, offering more long-term value.
To simply put, the short answer to this is no. When purchasing a solar panel system, what you are ultimately looking for are the following:
Even if your initial upfront investment is a few thousand more, if you can have net savings that supercede these few thousand, your solar panel cost is still worth it. On top of which, there is inherent risk of going for a cheaper solar panel system. While cost is an important factor in selecting a solar panel system, it is crucial to recognize that choosing lower-cost systems can sometimes come with significant risks, especially from providers who are new or less reputable.
Primarily, investing in a cheaper solar system may mean that the solar panel system could be poorly designed, or does not maximise the space of your roof in order to cut down on costs. In the best case scenario, this could mean lesser savings, but in the worst case scenario, this could lead to no savings generated, or even a net negative overall.
Having a quicker breakeven time means that you will be able to have greater return on investment. Having a larger solar panel system may be more expensive, but it often means that you are able to break-even quicker due to the larger amount of solar energy you are able to generate and ultimately sell back. However, this is not always the case, and it is always best to check with your solar panel installer on this factor.
Are you currently considering going solar for your home, but wish to seek expert advice? At FOMO Energy, we have successfully built & maintained over 100 solar panel projects, enabling our homeowners to save up to 80% of their initial bills. With 5 year warranties, and round-the-clock monitoring to boot, we always ensure our customers get the best out of their roof, and ultimately their system without any faults & 100% peace-of-mind.
Interested in getting a quote from us? Simply WhatsApp us at +65 80610116 or fill up our contact form here!
