askST: Should I install solar panels at home? How much can I save on electricity?

Switching to solar power can be a financially wise decision for landed homeowners in Singapore, according to experts. With fluctuating energy prices due to geopolitical tensions, solar energy offers a potential solution. Singapore's electricity is primarily sourced from imported natural gas, making homeowners vulnerable to global fuel price changes.

Over the past year, electricity tariffs have increased, reaching 31.91 cents per kilowatt hour in the third quarter, but then decreased to 28.59 cents per kWh for the fourth quarter, excluding goods and services tax.

There has been a notable rise in the number of private homes in Singapore that have installed solar panels, with around 8,086 households, including condominiums and landed properties, using solar power as of the first half of 2026. This is an increase from 5,817 homes at the end of June 2025.

Thomas Reindl, deputy chief executive officer of the Solar Energy Research Institute of Singapore (SERIS) at the National University of Singapore, states that installing a solar photovoltaic (PV) system can make financial sense for landed homeowners. The self-generated electricity costs around 15 cents per kWh over the system's lifetime, which is 20 years or more. Solar panels use photovoltaic cells to convert sunlight into electricity.

The Energy Market Authority (EMA) estimates that the payback period for landed homeowners to install solar panels can be around five years or shorter if they have higher electricity consumption. Factors such as installation costs, household electricity consumption, and solar generation affect actual savings and payback periods. When installed, solar panels allow households to reduce their electricity bills by using the generated electricity and earning payments for excess electricity exported to the grid.