The Question Every Homeowner Is Asking
With rising electricity prices and Singapore’s sustainability push, many homeowners ask: “Is solar power worth the investment?”
The short answer is yes, but the value depends on your home, your system size, and your energy usage. In this guide, we’ll break down the costs, savings, and payback period so you can make an informed decision.
The Rising Cost of Electricity in Singapore
Singapore’s electricity tariffs have been increasing due to global energy market fluctuations. This means higher monthly bills for households.
By installing solar panels, homeowners can reduce their electricity bills by 50–80%, depending on the size of the system installed and daily energy usage. For many, this translates into thousands of dollars saved over the system’s lifetime.
Cost of Installing Solar Panels
The cost of a solar system varies depending on the number of panels, roof type, and installation complexity. Below is a rough estimate of standard system sizes in Singapore:
System Size | Number of Panels | Estimated Cost (SGD) | Estimated Monthly Generation (kWh) |
10 kWp | 20–24 | $18,000 – $21,000 | ~1,040 kWh |
15 kWp | 30–33 | $20,000 – $23,000 | ~1,400 kWh |
20 kWp | 40–43 | $24,000 – $27,000 | ~1,900 kWh |
These figures provide a ballpark idea of upfront costs versus energy output. A professional site assessment is needed for an exact quotation.
What Does ROI Mean for Solar?
If you’ve researched solar before, you’ve likely come across the term ROI (Return on Investment). In simple terms, ROI is how long it takes for your energy savings to “pay back” the cost of your system — and how much you’ll save after that.
Example ROI Calculation:
System Cost: S$18,000
Monthly Bill Before Solar: S$300
Monthly Bill After Solar: S$60
Monthly Savings: S$240
Annual Savings: S$2,880
Payback Period: S$18,000 ÷ S$2,880 = ~6.25 years
This means in about 6–7 years, the system has paid for itself. Since solar panels typically last 20–25 years, that’s more than a decade of free electricity savings.
Final Verdict: Are Solar Panels Worth It?
For most homeowners in Singapore, the answer is yes. Solar panels are a wise financial and environmental investment with rising electricity prices, proven savings, and a typical payback period of less than 7 years.
In addition, the government’s push for renewable energy, the falling cost of solar technology, and the case for going solar have never been stronger.
You can enjoy decades of reduced bills, greater energy independence, and a more sustainable lifestyle by choosing the right system size and a reliable installer.
Pro Tip: Ask your installer for a customised ROI calculation based on your roof size and electricity usage. This ensures you see the real savings potential before you commit.