Estimated reading time: 18 minutes | Updated: February 2026
On 12 February 2026, Prime Minister Lawrence Wong stood in Parliament and announced that Singapore would raise its solar deployment target from 2 gigawatt-peak to 3 gigawatt-peak (GWp) by 2030. The previous 2 GWp target had been met ahead of schedule. The new target signals a clear message: solar is no longer optional for Singapore — it is central to the nation's energy future.
For landed homeowners, that announcement matters. It means more streamlined approvals, continued policy support for rooftop solar, and a market that will only grow. But it also raises practical questions: What does 3 GWp actually mean for me? How much does solar cost in 2026? Will there be new incentives? And is now the right time to act?
This article answers all of that. We'll break down what Budget 2026 means for residential solar, what it costs today, what you'll save, and why the next 12–24 months may be the best window to install.
What Budget 2026 Actually Said About Solar
The headline number: 3 GWp by 2030. That's a 50% increase over the previous target and reflects Singapore's commitment to maximising solar deployment across all viable surfaces.
The government's stated approach: "continue to maximise solar deployment across all viable surfaces, and progressively set more ambitious targets further into the future."
Residential rooftops are a critical piece of that expansion. There are an estimated 70,000+ landed homes in Singapore with viable roof space. Yet adoption remains below 5%. The gap between potential and current deployment is enormous — and the government knows it.
Budget 2026 doesn't introduce new subsidies for residential solar. What it does is reinforce long-term policy certainty: solar will be supported, approvals will be streamlined, and the grid will continue to accept and credit exported electricity.
What This Means for Landed Homeowners in 2026
1. No New Subsidies — But Strong Economics Anyway
Singapore has never offered direct cash subsidies for residential solar. Budget 2026 did not change that. What you get instead is:
- Net Energy Rebate (NER): Surplus solar electricity you export to the grid is credited at the wholesale price. SP automatically offsets this against your bill. No paperwork, no separate licence.
- Streamlined approvals: EMA and SP Services have refined the process for registering as an Intermittent Generation Source and installing a bi-directional meter. Typical permit timeline: 2–4 weeks.
- Green loans: Banks (DBS, OCBC, UOB) offer green loans for solar at competitive rates. S$0 upfront, monthly repayment often less than your electricity savings.
The economics work without subsidies. Solar costs S$1,450–S$2,000 per kWp installed. At current electricity tariffs (~28–30 cents/kWh), payback is 4–6 years. After that, you're generating free electricity for 19–21 more years.
2. Residential Enquiries Are Up 30% Year-on-Year
Solar is shifting from niche to mainstream. Industry data shows residential solar enquiries in Singapore rose by over 30% in 2025 compared to the year before. Landed homeowners are no longer asking "should I?" — they're asking "when?" and "with whom?"
That surge is driven by three factors: rising electricity tariffs (even with the recent 3% Q1 2026 decrease, rates remain elevated by historical standards), falling solar costs (down ~60% over the past two years), and growing awareness of the Net Energy Rebate.
3. The Best Time to Install Is Before the Rush
As more homeowners go solar, two things happen: installer capacity gets stretched, and the best roof orientations get taken. If you're considering solar, acting in 2026 positions you ahead of the curve — with shorter wait times, more installer attention, and the same strong economics.
Solar Panel Cost in Singapore 2026: The Numbers
Budget 2026 didn't change solar pricing. But it's worth restating the current market reality, because cost is the number one question we hear.
S$1,000 – S$1,500 per kWp fully installed. That includes panels, inverter, power optimisers, mounting, all electrical work, permits, monitoring, and warranties.
These figures are based on Q1 2026 market pricing. Solar costs have dropped approximately 75% over the past decade. A system that cost S$45,000 in 2016 now costs under S$18,000 for equivalent output — with better panels and longer warranties.
You don't need to pay upfront. Green loans, solar leases, and subscription (rent-to-own) models all allow S$0 down. Monthly payments are typically less than your electricity savings, so you're cash-positive from month one.
Electricity Tariffs in 2026: Context for Your Savings
SP Group's regulated tariff for Q1 2026 is 26.71 cents/kWh (excluding GST) — a 3% decrease from Q4 2025, driven by lower global natural gas prices.
That decrease is welcome, but it doesn't change the solar equation. Even at 27 cents/kWh, grid electricity costs 4–5 times more than solar over a 25-year system life. Solar locks in an effective cost of roughly 5–8 cents/kWh. Grid tariffs will fluctuate every quarter; your solar cost is fixed at the moment of purchase.
The higher grid tariffs go in the future, the more valuable your solar investment becomes. Budget 2026's 3 GWp target implies the government expects solar to play a larger role — which means grid electricity will remain a premium option for those who don't generate their own.
What the 3 GWp Target Implies for the Next 4 Years
Singapore had reached roughly 1.7 GWp by mid-2025. To hit 3 GWp by 2030, the country needs to add approximately 1.3 GWp over the next four years — or about 325 MWp per year on average.
Where will that capacity come from?
- Commercial and industrial rooftops: Warehouses, factories, carparks, and commercial buildings. These will absorb a large share.
- Floating solar: Tengeh Reservoir and other water bodies. Already deployed and expanding.
- HDB SolarNova: Public housing blocks. HDB manages this centrally.
- Private residential (landed homes): Your roof. This is the segment with the largest untapped potential.
Private residential solar capacity grew from 11 MWp in June 2019 to 59 MWp in June 2024. That's a fivefold increase in five years. With 70,000+ viable roofs and adoption below 5%, there is enormous headroom. Budget 2026's higher target will accelerate deployment across all segments — including yours.
How to Get Started: Your Next Steps
Budget 2026 has set the direction. The economics are clear. The question is execution.
Step 1: Get a Site Assessment
A qualified solar consultant will evaluate your roof orientation, shading, structural condition, electrical configuration, and consumption pattern. This typically takes one visit and is free with reputable installers.
Step 2: Receive a Proposal
Based on the assessment, you'll get a system design, cost quote, savings projection, and financing options. Look for itemised pricing with no hidden fees — permits, monitoring, and scaffolding should all be included.
Step 3: Approvals and Installation
Your installer handles EMA registration, SP bi-directional meter application, and LEW certification. Physical installation typically takes 1–3 days. End-to-end timeline: 6–10 weeks from sign-off to commissioning.
Step 4: Generate and Save
Once commissioned, your system starts producing. You self-consume during the day, export surplus for NER credits, and watch your electricity bill drop by 60–80%.
Frequently Asked Questions
Q: Did Budget 2026 introduce new solar subsidies for homeowners?
A: No. Singapore does not offer direct cash subsidies for residential solar. Budget 2026 raised the deployment target to 3 GWp by 2030 but did not add new incentives. The economics work without subsidies — payback is 4–6 years at current tariffs.
Q: What does 3 GWp mean?
A: GWp (gigawatt-peak) is the total installed solar capacity across Singapore. 3 GWp = 3,000 MWp. For context, a typical landed home has a 10–15 kWp system. 3 GWp is equivalent to roughly 200,000–300,000 such systems.
Q: Is now a good time to install solar?
A: Yes. Costs are at historic lows, tariffs remain elevated, and Budget 2026 reinforces long-term policy support. Residential enquiries are up 30% YoY — acting now positions you ahead of the rush.
Q: How much does solar cost in 2026?
A: S$1,450–S$2,000 per kWp fully installed. A typical 10 kWp system costs S$15,000–S$20,000. Financing options allow S$0 upfront.
Q: Will there be more incentives in the future?
A: The government has not signalled direct residential subsidies. The Net Energy Rebate (NER) effectively provides ongoing compensation for exported electricity. Policy focus is on streamlining approvals and maximising deployment, not new cash incentives.
Q: What if I have an old roof or a terrace house?
A: Older roofs can be prepared with waterproofing and structural reinforcement before installation. Terrace houses typically accommodate 6–9 kWp systems and achieve strong payback. Sunollo has installed on 60-year-old roofs and older terraces — both work.
Your Move
Budget 2026 has set the target. The market is moving. The economics are clear.
Sunollo offers a free, no-obligation site assessment for every landed homeowner in Singapore. Our energy consultants will evaluate your roof, analyse your bills, and show you exactly what solar can do for your home — with real numbers, not projections.
Get Your Free Solar Assessment →
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