Government considering more initiatives to push solar energy adoption in Singapore

Tessa Oh

Tessa Oh

Published Mon, Feb 28, 2022 · 12:55 PM

DeeperDive is a beta AI feature. Refer to full articles for the facts.

IT IS not appropriate for the government to provide solar savings guidelines for landlords and tenants as these are negotiated by both parties as part of the tenancy agreements, but other initiatives to promote solar adoption are being considered, said Minister of State for Trade and Industry Low Yen Ling.

"The government will continue to review ways to incentivise and promote more solar adoption, said Low on Monday (Feb 28), including looking at co-creating solutions with private developers and industry players, as well as working with stakeholders to maximise solar energy adoption in Singapore

Low was responding in Parliament to questions from Workers' Party Member of Parliament Leon Perera on whether the government would consider developing a set of landlord-to-tenant solar energy purchasing guidelines to promote such arrangements.

He had also asked if the Ministry of Trade and Industry (MTI) would expand JTC Corporations' mandatory solar deployment scheme to all tenants, while offering incentives to tenants with short remaining leases or for JTC to own solar installations and lease these to tenants with shortest remaining leases.

Currently, solar deployment is mandatory for new or renewed land leases at sites which have at least 800 sqm of available contiguous rooftop area and a remaining lease period of 15 years or more.

In her reply, Low said that JTC is currently seeking new solar vendors who are able to service shorter contract periods to benefit such tenants.

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

The statutory board is also engaging existing tenants in land-based facilities to explore the possibility of a licence fee sharing model.

In the meantime, landlords can take reference from the existing practices established by JTC to encourage solar adoption.

The SolarRoof Programme - initially started by JTC to solarise its own buildings - was expanded in 2020 to other buildings to make solar adoption more accessible for lessees, including those with shorter leases.

Right now, its tenants can choose between 2 solar deployment models and they would not need to fork out any upfront capital outlay if they use one of JTC's appointed solar vendors under the programme.

They can either choose to lease their space to any solar vendor for solar panel installations in return for a rental fee or allow vendors to install solar panels on their rooftops and pay a discounted rate on the electricity generated which offsets their electricity consumption.

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

Copyright SPH Media. All rights reserved.