Commercial electricity prices in Singapore remain volatile, and regulatory pressure around sustainability reporting continues to increase. For many businesses, the challenge is simple: how do you reduce operating costs and carbon exposure without deploying millions in upfront capital?
A Commercial Solar Power Purchase Agreement (PPA) — commonly referred to as solar leasing in Singapore — provides a solution. It enables building owners to install rooftop solar with zero upfront investment while securing long-term electricity savings.
Singapore’s commercial and industrial (C&I) sector accounts for the majority of national electricity consumption. With tariff fluctuations, fuel price exposure, and rising carbon accountability requirements, businesses are seeking cost certainty.
According to the Energy Market Authority (EMA), solar adoption continues to grow as part of Singapore’s energy transition strategy.
A rooftop solar PPA allows companies to:
A Commercial Solar Power Purchase Agreement (PPA) is a long-term contract between a building owner (or tenant) and a solar developer. Under this arrangement:
If you’re new to the concept of PPAs, you may refer to our detailed breakdown here: Solar PPA: What Is It and Is It a Good Idea?
Unlike purchasing solar panels outright, you are not buying equipment — you are buying electricity. This distinction is critical for accounting, risk allocation, and balance sheet treatment.
Receive a detailed feasibility assessment and projected savings analysis for your building.
Solar PV systems under 1 MWac generally do not require a generation licence. Systems at or above 1 MWac may require additional licensing approval. You may refer to EMA’s official guidelines here: EMA Solar Installation Guide.
All non-residential solar systems must be connected in parallel with the grid and approved by SP Group prior to commissioning. Metering configurations may include Advanced Metering Infrastructure (AMI).
Rooftop solar installations must comply with the Singapore Civil Defence Force (SCDF) fire safety code, including emergency access pathways and isolation switches.
| Category | Solar PPA | Buy & Own |
|---|---|---|
| Upfront Capital | $0 | High CapEx |
| Maintenance | Developer responsible | Owner responsible |
| Performance Risk | Transferred to developer | Owner bears risk |
| Electricity Savings | Discounted rate | Full generation benefit |
| Accounting Treatment | Operating expense | Capital asset |
Commercial rooftop systems are designed to last 25–30 years. Learn more about panel durability in our article: Lifespan of Solar Panels.
Understanding how panels convert sunlight into electricity can also help stakeholders appreciate system performance: How Solar Energy Conversion Works.
Zero upfront cost. Long-term electricity stability. Professional compliance handling.
Disclaimer: Regulatory requirements may change. Always consult a licensed solar provider and Licensed Electrical Worker (LEW) for compliance guidance.
