If you’ve been sitting on the fence about installing solar panels for your home or business, here’s why now is the right time to act and why waiting could actually cost you more in the long run. In recent years, solar prices have dropped by more than half, and experts believe we’ve reached the lowest point. According to CNA, “Over the past two years, prices for such panels have dropped by about 60 per cent,” and “Experts said solar panel prices have bottomed out and are unlikely to decrease anymore.”
Delaying your switch to solar could mean missing out on years of potential savings and lower utility bills. With electricity prices on the rise and government support for solar adoption still strong, there’s little reason to hold off.
In this article, we’ll break down exactly why it makes sense to invest in solar now. You’ll learn about the current solar panel costs in Singapore, the savings you can expect, and how new rent-to-own schemes make solar more accessible than ever.
You might ask, why have solar prices dropped recently. There are several key factors that have contributed to the sharp decline in solar panel costs over the past few years. Things like global oversupply, technology advancements, economies of scale, etc are just few factors affecting solar panel prices. Here are more factors that affect the solar prices drop with some explanation:
Major manufacturers, especially in China, have significantly scaled up production, leading to a glut in the global market. This oversupply has pushed prices down sharply.
Manufacturing processes have become more efficient, and the shift to high-efficiency cell technologies like PERC and TOPCon has lowered cost per watt while increasing output.
As production volume increases, the cost per unit drops. The solar industry has benefited massively from global economies of scale in both module manufacturing and logistics.
The cost of polysilicon, a key raw material in most solar panels, saw a sharp decline recently after years of high prices. This helped bring down module prices significantly.
Automation and better factory design have reduced labor costs, defects, and production downtime, further decreasing manufacturing cost per panel.
Intense competition among global suppliers and new entrants into the market have forced manufacturers to cut solar prices aggressively to maintain market share.
Subsidies, tax breaks, and energy cost reductions in countries like China have lowered production costs and made solar panels even more affordable on the global market.
These changes have made solar energy more accessible and affordable for homeowners in Singapore and beyond. As a result, more households are making the switch to clean energy, enjoying long-term savings and greater energy independence.
Personally, we feel it is no longer beneficial to wait for cheaper panels. In fact, delaying your solar installation in hopes of future price drops could actually cost you more in the long run. Here’s some reasons why it is no longer worth waiting:
With solar prices already at their lowest point in years, there’s little financial benefit to waiting. Any future reductions, if they happen at all, are expected to be marginal, nowhere close to the recent 50–60% drop we’ve already seen.
As solar prices have fallen significantly, panels now contribute only a small portion of the total installation cost, often less than 30%. Other costs such as inverter, transport, labour, scaffolding, permits, and mounting infrastructure make up the majority of the total cost. So even if solar prices dropped slightly more, it would barely move the needle on the overall cost.
While solar panel prices have dropped, the cost of labour, transport, and installation services tends to rise over time, especially in Singapore where the cost of living is rising. As wages and related costs go up, future installations are likely to become more expensive even if the panels themselves become slightly cheaper. If you keep waiting, the small decrease in solar prices may end up being offset by the other bigger costs, resulting in the same or higher overall price for you.
Singapore’s grid electricity prices are projected to increase in the coming years due to rising global gas costs, carbon taxes, and grid upgrade investments. The longer you wait, the higher your electricity bills may climb, making solar even more valuable for long-term savings.
Every month you delay is a month of electricity bills you could have offset with solar. The earlier you install, the faster you start saving, and the shorter your payback period becomes.
Under Singapore’s solar sellback schemes, your export rates are tagged to electricity tariff prices. This means that as electricity prices increase, you also stand to gain as your exports also increase proportionately, ensuring consistent savings from solar
As awareness and interest in solar grow, especially among landed homeowners in Singapore, installers are getting booked out weeks or even months in advance. Waiting might mean joining a longer queue.
The lower upfront costs and higher energy prices mean solar break-even times are now just 3 to 4 years for most homeowners; a dramatic improvement from the 7 to 8 years it used to take just a few years ago. For some homes, a return on investment in under 3 years has also become possible. The shortened payback time means you’ll start enjoying years of free electricity, savings and pure profit much sooner.
While it may be tempting to hold out for even cheaper solar panels, the reality is that the best time to invest is now. With prices already at historic lows, rapidly rising electricity rates, and short payback periods of just 3 to 4 years, delaying your decision could mean missing out on substantial long-term savings.
Over the past decade, the cost of going solar has dropped by around 90 percent, making a solar investment one of the most affordable and rewarding energy decisions available today. While many still assume solar comes with high upfront costs, it is now the lowest-cost method of generating electricity, ahead of gas, coal, and nuclear.
This dramatic shift has made solar attractive not only to environmentally conscious individuals, but also to those seeking strong financial returns. Investing in solar today can deliver better long-term returns than simply keeping the same amount in a bank savings account or fixed deposit. While such traditional investment options offer modest interest earnings, a solar system on your roof instead reduces your electricity bills every month, generating real savings that add up year after year, often far exceeding what you would gain from interest alone.
For example, a 20 kWp system would allow annual savings of over $6,500, with an install cost of around $22,000. This results in savings of about $65,000 over 10 years and nearly $200,000 over 30 years.
Thanks to advanced TOPCon technology, modern solar panels have a lifespan of 30 years with only around 0.4% degradation per year. This means that even after three decades, your panels can still produce around 88 percent of their original output, allowing you to save and earn every year for 30 years or more.
The era of ultra-low solar prices is here. The technology is mature, the savings are real, and the benefits of waiting are nearly nonexistent while the cost of delaying keeps rising. If you’ve been considering solar, there has never been a better time. Installation costs have stabilised at historic lows, and the long-term benefits, from lower electricity bills to positive environmental impact, are immediate and significant.
Our team at FOMO Energy is ready to guide you through every step of the process, from system sizing to estimating your potential savings.
Get in touch with us today for a free consultation and start powering your home with the sun.
