Adopting subsidies such as Feed-in-Tariffs (FiT) distorts the energy markets and increases costs for consumers. Hence, it is important to price energy correctly and send the right price signals to both consumers and investors.

Instead of subsidies, Singapore has taken proactive steps to introduce regulatory enhancements to facilitate the entry of renewable energy when such technologies become commercially viable. The Government's support for renewables also comes in the form of funding for Research & Development to develop capabilities within the industry.

Currently, any solar energy produced is first used to offset your own consumption during that period. Any excess solar energy will be exported to the grid. You will receive payment (based on the prevailing low-tension electricity tariff minus grid charge) from SP Services by way of a credit adjustment to the monthly electricity bill.

You may require up to two licenses to install a solar PV system.

i. Electrical Installation Licence
An Electrical Installation Licence is required to use or operate any electrical installation, including a solar PV system. It is imposed on non-residential electrical installations with demand exceeding a certain threshold (45 kilovolt ampere or kVA). In addition, you will need to appoint the appropriate class of Licensed Electrical Worker (LEW) to handle the electrical installation. The LEW is also able to assist in the application for the Electrical Installation Licence.

ii. Electricity Generation Licence
For a solar PV system, the aggregate of the AC inverter capacities at the point of connection to the grid will be used to determine the threshold for licensing requirements. The point of connection refers to the point where the solar PV system is connected to SP PowerAsset's substation.

If your solar PV system exceeds 1 MWac (measured in terms of aggregate inverter capacity at the point of connection to the grid), you would need to apply for a licence from the EMA.

You are required to register with the Energy Market Company (EMC) to receive payment for excess solar electricity sold back to the grid based on the prevailing nodal prices.

The latest statistics on solar PV installations available are:

I. Total Installed Capacity of Grid-Connected solar PV;
II. Number of Grid-Connected solar PV installations; and
III. Overview of solar PV installations by URA planning region.

Net settlement' of the energy component means that consumers with embedded solar PV systems will be charged or paid based on:

i. Net withdrawal of electricity, when the total consumption at your premise exceeds the total generation of the solar PV system for each trading period*; or
ii. Net injection of electricity, when the total generation of the solar PV system exceeds the total consumption at your premise for each trading period.

*Any half-hourly period when electricity products are traded in the National Electricity Market of Singapore (NEMS).

An Electrical Installation Licence is required to use or operate any electrical installation, including a solar PV system. It is imposed on non-residential electrical installations with demand exceeding a certain threshold (45 kilovolt ampere or kVA). In addition, you will need to appoint the appropriate class of Licensed Electrical Worker (LEW) to handle the electrical installation. The LEW is also able to assist in the application for the Electrical Installation Licence.

Solar energy is currently the most viable form of renewable energy for Singapore, and it forms part of our overall energy mix. However, intermittency and a lack of available land area to deploy solar photovoltaic (PV) systems limit its widespread adoption. As research and technological improvements bring down costs and improve the efficiency of solar PVs, solar energy could play a bigger role in Singapore in the future.

More information can be found on Singapore Power's Solar PV website.

No licence is required for residential installations less than 1 MWac.