Is Solar Worth It in Singapore? An Honest ROI Breakdown

The Financial Case: A 25-Year View

A 20 kWp bungalow system costing S$48,000. Year 1 savings: ~S$8,000. Payback: ~6 years. Over 25 years with 2% annual tariff increase: cumulative savings of S$180,000–S$210,000. Total ROI: 275–340%.

For a GCB with 80 kWp costing S$140,000: annual savings S$30,000–S$36,000, payback 4–5 years, 25-year returns of S$600,000+.

What Are the Risks?

Panel/inverter failure: Tier-1 panels carry 25-year warranties. Inverter replacement at Year 12: S$2,000–S$5,000.

Policy changes: Export rates can change. Self-consumption savings depend on SP Group retail tariff — historically only rising.

Shading: Neighbouring construction or tree growth. Pre-installation shading analysis mitigates this.

Does Solar Increase Property Value?

Solar-equipped landed properties command an estimated 1–3% premium — equivalent to S$50,000–S$200,000 on a typical GCB.

‍