Singapore's Electricity Tariff Rose 17% in July 2026: What It Means for Your Solar Payback

What changed on 1 July 2026

SP Group's regulated electricity tariff is reviewed every quarter by the Energy Market Authority. For the third quarter of 2026 (1 July to 30 September), it rose to 34.78 cents per kWh including GST (31.91 cents before GST), up about 17% on the previous quarter. That is the sharpest quarterly increase in several years, and it reverses the lower, steadier prices of 2025.

Tariffs move up and down with global fuel costs, so this is not necessarily permanent. But it is what you are paying the grid right now, and it is the number that decides how much a solar system saves you today.

Why a higher tariff makes solar more valuable

A home solar system saves you money in two ways, and a higher tariff lifts both:

Self-consumption. Every kWh your panels produce that you use straight away is a kWh you do not buy from the grid. At the new tariff, that avoided cost is about S$0.35 per kWh. The more expensive grid power becomes, the more each of those units is worth to you.

Export credits. Surplus power you send back to the grid is credited under the SCT scheme at about S$0.26 per kWh. Export is worth less than self-consumption, which is why sizing a system to match your daytime usage matters, something we cover in how many panels your home needs.

What it does to your savings and payback

Here is an illustrative picture for a typical 10 kWp landed-home system, which generates roughly 11,000 to 13,500 kWh a year depending on roof orientation, shading and weather.

The figures are illustrative and depend on your roof and usage, but the direction is clear: when the grid tariff goes up, the value of the power your own panels produce goes up with it, and your payback gets shorter. For the full method, see our honest ROI breakdown and the cost guide.

Should you wait to see if tariffs fall again?

It is a fair question, and the honest answer is that no one can predict the quarterly tariff. What we can say is this: while you wait, you are paying the higher grid price on every unit you use. A solar system starts offsetting that from the day it switches on, and the value it delivers rises and falls with the tariff automatically. The longer you own a system, the more quarters of savings you capture, whichever way prices move.

This is also why we generally recommend owning your system outright rather than leasing it: when the tariff rises and savings grow, an owner keeps 100% of that upside.

Frequently asked questions

How much did the electricity tariff rise in July 2026?
The regulated tariff rose to 34.78 cents per kWh including GST for the third quarter of 2026 (1 July to 30 September), about 17% higher than the previous quarter and the steepest quarterly increase in years.

Does a higher electricity tariff make solar more worth it?
Yes. Each kWh your panels generate and you use is worth about S$0.35 that you no longer pay the grid, and surplus exported earns about S$0.26 under the SCT scheme. A higher tariff raises those values and shortens your payback.

What is the current SP Group electricity tariff?
34.78 cents per kWh including GST for Q3 2026 (1 July to 30 September). It is reviewed every quarter by the Energy Market Authority.

How much can solar save at the new tariff?
For a typical 10 kWp landed-home system generating roughly 11,000 to 13,500 kWh a year, the value is on the order of S$2,900 to S$4,700 a year, depending on generation and how much you use during daylight versus export.

Should I wait to install solar in case tariffs drop?
Tariffs are reviewed quarterly and move with fuel costs, so they are hard to predict. While you wait, you pay the higher grid price. A system captures savings from the day it switches on, and its value tracks the tariff either way.

How does export credit work under SCT?
Under the Simplified Credit Treatment scheme, the surplus power your system sends to the grid is credited on your bill at about S$0.26 per kWh, the regulated tariff net of grid charges.

Want the numbers for your own roof?

Grid prices change every quarter, but the value of owning your generation only grows as they rise. We are happy to model your expected savings and payback at the current tariff for your specific roof and usage, with no obligation. Book a free site assessment. You can also read our cost guide and payback guide.

Rezeca Renewables has installed solar for landed homes and businesses across Singapore since 2009, with over 1,500 installations and 45+ MWp to date, including 1,300+ residential landed homes.