Transcription
Mr. Kenneth Teo. The floor, please. Mr. Speaker, may I provide a combined reply to oral PQs 4 to 6, as well as written PQ number 4 in today's order paper as they cover the same subject?
Yeah, please proceed. Thank you. Mr. Speaker, there has been strong growth in solar adoption over the last few years. We have achieved 2 GW peak of installed solar capacity island-wide and have set an increased target of 3 GW peak by 2030. For private residential buildings, the number with solar panels has increased more than four times in the last 5 years, from around 1,400 in 2020 to around 6,900 in 2025. This corresponds to about 8% of all private residential buildings.
The growth in solar deployment has been driven by favorable economics. Solar panel costs have come down over the years and the payback period for rooftop solar can be 5 years or even less. The government has also introduced measures that can help to reduce the payback period for eligible building owners. For example, eligible private buildings can tap on the Green Mark Incentive Scheme for existing buildings 2.0, which helps building owners lower the upfront cost of energy improvement works, such as solar panel installation. Depending on the overall carbon abatement achieved, eligible building owners can benefit from grant support of up to 50% of the cost of the energy improvement works, capped at $1.2 million.
Some jurisdictions have made it mandatory for new buildings to install solar panels. In Singapore, we have no plans at this stage to mandate solar panel installation on buildings because some building owners may prioritize other rooftop users such as greenery, or their rooftops may not be suited to solar installation due to factors such as shading from neighboring tall buildings. The government strongly encourages all building owners to install solar panels if this is feasible. With ongoing global uncertainty in energy prices, solar installation can provide building owners with savings and greater predictability on their electricity bills while contributing to Singapore's overall energy resilience.
In recent weeks, some solar vendors locally have reported an increase in interest in solar panels among private building owners. This could be also partly because of the recent increase in the regulated tariff for electricity, and also perhaps some anticipation of further increase in the tariff. For building owners who may be concerned about costs of installing solar panels, some solar vendors offer rent-to-own or solar leasing models that allow building owners to enjoy the benefits of solar installation with little to no upfront cost.
Mr. Kenneth Yeong has asked on the electric vehicle early adoption incentive EEAI. The EEAI was implemented in January 2021 to encourage the early adoption of electric vehicles by reducing the gap in total upfront cost between an EV and equivalent internal combustion engine vehicle. The EEAI parameters have tapered with a narrowing upfront cost cap over the years and will cease from 1st January 2027. As of March 2026, more than 55,000 electric cars and taxis have benefited from the EEAI. The government will continue to push for solar deployment in Singapore. We'll consider further measures if necessary to accelerate solar adoption in Singapore.
Mr. Teong. Thank you, Speaker. Residential rooftop solar generates clean energy and reduces household dependence on imported natural gas and provides a hedge against energy price shocks. Benefits that EVs, which add demand to the same gas-dependent grid, do not provide. Now, I note that MOS has mentioned the Green Mark Scheme. So, but despite the Green Mark Scheme, 92% of eligible rooftops are still without solar panels. So, my first SQ is why does she believe that that is currently the case? And my second SQ is would the ministry consider providing more of the same type of upfront support available for the EVs purchases to accelerate residential solar adoption?
MOS Gan. Well, as Mr. Speaker, as I've mentioned earlier on, the economic conditions now are actually very favorable for private property building owners to consider solar installation. Primarily because um the solar technology has improved um in terms of efficiency and also the cost of installation has come down substantially. So, if you compare it with a few years ago, um you know, there was hesitancy uh in private building owners to adopt solar deployment, but now we are indeed seeing a a much higher in interest amongst private building owners, including residential properties. Um, and we believe uh uh that um the economics will drive uh faster adoption. Now, having said that, we will monitor closely the rate of adoption, and the government is prepared to consider additional measures if necessary.
On the point about EEAI, actually EEAI uh works in a uh uh a certain way. It it assumes that the consumer wants to buy a vehicle and is choosing between different types of vehicles. Um, and in this case, the EEAI nudges the consumer to uh consider uh electric vehicle, even though electric vehicle could be more costly than ICE vehicle. Um, but for building owners, um, here we are talking about catalyzing a purchase, a new purchase. Um, and there are various considerations. It's not just about the cost, it's not just about whether there is an incentive from the government, but some of the private residential building owners have also expressed uh some other considerations. For example, um you know, some are concerned about uh whether it will affect uh uh the integrity of the waterproofing for the roof. Others have also said that they are unsure about the reliability of the solar panel uh installation vendors. So, and of course, there are some building owners who prefer to keep their rooftop for other uh purposes and preferring not to install solar. Even if you have a grant, it may not nudge them to go for the purchase. Now, um, I think it's important that we um understand the issue uh closely and look at what it takes for us to be able to nudge more effectively private building owners to go towards solar installation.
Dr. Koh Poh Koon. Thank you, Speaker, and thank you, MOS, for your response. I have three supplementary questions. First, as a small country that cannot take energy security for granted, could the MOS share whether Singapore may increasingly move towards designing future developments and estates to be more solar ready from the outset so that we strengthen our long-term resilience rather than rely on retrofitting later on. Second, could the MOS also elaborate on whether there are opportunities for closer collaboration and coordination across agencies involved in energy planning, urban development, and building design so that solar deployment can be integrated more systematically upstream in future developments. And third, as Singapore scales up solar deployment over time, how is the ministry strengthening our local ecosystem of manpower, technical expertise, and supply resilience to support this transition in a sustainable and long-term fashion? Thank you.
MOS can. Mr. Speaker, the first two supplementary questions are somewhat related, so I'll answer them together. Indeed, the government agencies are working closely together um to look at how we can make solar installation in Singapore uh easier and more cost-effective for the building owners. Now, um new buildings are required to meet standards under BCA's code for environmental sustainability of buildings with solar being recognized as one of the acceptable carbon reduction measures under the code. I think the broader theme is about sustainability. Solar installation is certainly one of the means. Um there are also other things that uh building designs can uh take into account um where where it's more practical, for example, energy consumption, building design, ventilation. Um, there are several uh things that uh building owners can um adopt and not just be limited to just solar. Now, of course, we believe that solar, because uh of its uh uh cost uh effectiveness going forward, there will be more adopters of this technology. Now, we will continue to push the boundaries whenever possible and to explore more innovative solar deployments in Singapore, such as at car parks and bridges and even in between buildings.
Now, I also want to highlight another example of how our agencies are working together to simplify regulations to make it easier to install solar panels. Um last year, SCDF reviewed the fire safety requirement for 1-hour fire separation for roof-mounted solar panel installations. The simplified fire safety requirements exempt more than half of all solar panel installations on metal-roofed buildings. And this basically allows eligible business owners to save up to 30% on total construction cost. So, it's, you know, both uh regulatory uh codes and also review of existing regulations for us to move both new buildings and existing buildings towards higher adoption of solar as well as other environmental sustainability uh measures.
Now, on the third question on strengthening our local ecosystem, I think that is really good question. We've been working on that for a long time >> [snorts] >> with our institutes of higher learning both for pre-employment training for the graduates as well as for continuing education and training for adults who have graduated from our IHLs. Um There's a skills framework for energy and power that's developed jointly by the government, industry, the unions, and the IHLs. Now, specifically to solar, SkillsFuture Singapore also partners Sembcorp Solar as a SkillsFuture Queen Bee since 2024. This is to uplift other companies in this sector in training their workers and for us to be able to generate that pipeline that's needed for us to sustain this ecosystem.
Mr. Deputy Chair. Thank you, Speaker. Um I've received feedback from private property owners and MCSTs on concerns and uncertainties regards to procurement, financing structures, even things like warranties on waterproofing, reliability, and maintenance, something something which the MOS alluded to earlier as well. And in the case of MCST, the high threshold for approvals to adopt solar energy. So, hence I'd like to ask the MOS, will the ministry first assist to streamline the MCST approval process so we can drive accelerate solar adoption on private properties such as condominiums? And second, for all private property owners, develop a simple starter kit with standard templates on um procurement, financing options such as power purchase agreements, also matters on maintenance, roles and responsibilities of vendors, and warranties. And also importantly, provide a white list of vendors so that property or property owners will have the confidence to engage vendors and this will all drive a wider adoption and celebrate solar adoption in private properties. Thank you.
Mr. Gan. Mr. Speaker, BCA had conducted a public consultation to review various aspects of the building strata management act and this includes the proposal to lower the resolution requirement for third-party solar ownership models. The I think they're exploring a reduction from 75% to possibly 50%. Now, I think this will be helpful and we are awaiting BCA's completion of this review. On the suggestion to have a static kit for private property owners, especially residential owners, I think that is a very good idea. We will seriously consider it. Thank you.