Under the net metering scheme, any excess electricity that your solar system generates and exports to the grid is credited back to the consumer at the prevailing wholesale electricity prices. These credits can then be used to offset your future electricity bills.
The amount of money you can earn from the net metering scheme in Singapore will depend on several factors, including the size of your solar system, your electricity consumption, and the prevailing wholesale electricity prices. Solar panels can help you generate more electricity, thus increasing your potential earnings from your solar energy exports to the grid.
The current wholesale electricity prices in Singapore vary depending on the time of day and the demand for electricity.
As Q2 2023, they range from around 0.16 SGD per kWh during off-peak hours to around 0.42 SGD per kWh during peak hours. By investing in solar energy and using solar panels, you can take advantage of these price differences and maximize your net metering earnings.
To give you an idea of the potential earnings from net metering, let’s assume that you have a 10 kW solar system installed on your roof in Singapore and that you generate an excess of 10 kWh of electricity per day that is exported back to the grid. At a prevailing wholesale electricity price of S$0.33 SGD per kWh, you would earn around 3.2 SGD per day in credits (10 kWh x S$0.32 per kWh), or around 96 SGD per month.
Investing in solar panels is a smart choice for those looking to generate their own energy and reduce their reliance on traditional sources of electricity.
The actual earnings from net metering will depend on various factors, and electricity prices and net metering rates may change over time. However, net metering can provide a way for you to offset your electricity bills and potentially earn additional savings on your solar panels.
In Singapore, the net metering scheme was introduced in order to encourage solar energy installations both in residential and commercial sectors.
In fact, the government set an ambitious goal of reaching 2 GWp or solar by 2030 which would mean that roughly 10% of our city-state’s energy needs would be covered by solar on optimal days. By installing solar panels, you can contribute to this goal and help reduce Singapore’s carbon footprint. Can we go even further than this goal? Yes, if every household and commercial establishment considers solar for their rooftop. And it is becoming more and more interesting from the financial perspective, as costs of solar technology and equipment have reduced significantly over the past few years while energy rates have been on an upward trend. As a result, solar has become a compelling option for both residential and commercial establishments. In addition, with such incentives as net metering and growing prices of Renewable Energy Certificates (as of March 2024 prices being around S$80/REC), solar pay-back is estimated around 3–4 years in Singapore.
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