No subsidies for solar panel installation as costs have come down: Gan Siow Huang

[SINGAPORE] The government does not subsidise residential rooftop solar panels because “economic conditions now are actually very favourable” for property owners to consider installation, said Minister of State for Trade and Industry Gan Siow Huang in Parliament on Thursday (May 7).

Solar technology has become more efficient and installation costs are substantially lower, she noted.

The government is seeing “much higher interest” among private building owners, including those of residential properties, she added. “We believe that the economics will drive faster adoption.”

Several Members of Parliament had asked about moves to increase solar adoption, with Workers’ Party MP Kenneth Tiong drawing a comparison to the Electric Vehicle Early Adoption Incentive that subsidises electric vehicles.

In response, Gan said that the EV scheme “assumes that the consumer wants to buy a vehicle” and is choosing between different types. It thus nudges consumers to consider EVs, even though these could cost more than conventional ones.

In contrast, solar panels are new purchases by property owners, who may have other concerns besides installation costs, she said. “It’s not just about the cost, it’s not just about whether there is an incentive from the government.”

For instance, some homeowners are concerned about the effect on roof waterproofing or the reliability of solar panel installation vendors, she added.

Still, the government will monitor the rate of private solar panel installation closely, and is prepared to consider additional measures, she said.

Singapore also does not have plans to mandate solar panel installation on new buildings, she replied, in response to a question from Chua Chu Kang GRC MP Choo Pei Ling.

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Some building owners may prioritise other rooftop uses such as greenery, or the rooftops may not be suited to solar installation for reasons such as being shaded by other buildings, said Gan.

Tidal energy deployment

As for Nominated MP Neo Kok Beng’s question about Singapore’s plans for tidal energy, Gan said there are no current plans to deploy this.

This is due to the limited sea space available for the deployment of tidal energy devices, she said, noting that much of the Republic’s territorial waters are being used for ports, anchorage and shipping lanes.

“Given the limited sea space available, the amount of tidal energy that can be realistically harnessed domestically is estimated to be less than 1 per cent of Singapore’s energy needs,” Gan noted.