Oral reply to PQs on solar panel adoption and deployment

Questions for Oral Answer:

Mr Kenneth Tiong Boon Kiat: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what is the policy basis for providing the Electric Vehicle Early Adoption Incentive (EEAI) but declining equivalent capital subsidies for residential rooftop solar panel installation; (b) what are the (i) take-up rates of the EEAI and (ii) proportion of private households that have installed solar panels; and (c) whether the Ministry will introduce comparable capital grants or property tax rebates for residential solar panels. 

Dr Choo Pei Ling: To ask the Deputy Prime Minister and Minister for Trade and Industry in view of the energy crisis, whether the Government will consider (i) mandating the installation of solar panels for all new buildings and estates and (ii) providing greater incentives for existing building owners to install solar panels. 

Mr Edward Chia Bing Hui: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what has the Ministry assessed to be the key barriers to deploy solar panels in private residential and commercial spaces, including spaces managed by Management Corporations Strata Titles; and (b) whether additional measures such as grants, financing support, property tax reliefs or regulatory adjustments are being considered to address these barriers.

Question for Written Answer: 

Assoc Prof Jamus Jerome Lim: To ask the Deputy Prime Minister and Minister for Trade and Industry whether the Ministry will consider examining measures adopted in other countries to increase the adoption of residential solar installations on private properties with a view to adapting them for local implementation.

Oral Answer (to be attributed to Minister of State for Trade and Industry Gan Siow Huang)

1.                  Mr Speaker, my reply will cover the questions raised by Mr Edward Chia Bing Hui, Dr Choo Pei Ling, and Mr Kenneth Tiong in today’s Order Paper, as well as a question for written answer raised by Assoc Prof Jamus Lim. 

2.                  There has been strong growth in solar adoption over the last few years. We have achieved 2 gigawatt-peak of installed solar capacity islandwide and have set an increased target of 3 gigawatt-peak by 2030. For private residential buildings, the number with solar panels has increased more than four times in five years, from around 1,400 in 2020 to around 6,900 in 2025. This corresponds to around 8% of all private residential buildings. 

3.                  The growth in solar deployment has been driven by favourable economics. Solar panel costs have come down over the years, and the payback period for rooftop solar can be five years or even shorter. The Government has also introduced measures that can help to further reduce the payback period for eligible building owners. For example, eligible private buildings can tap on the Green Mark Incentive Scheme for Existing Buildings 2.0, or GMIS-EB 2.0, which helps building owners lower the upfront cost of energy improvement works such as solar panel installation. Depending on the overall carbon abatement achieved, eligible building owners can benefit from grant support of up to 50% of the cost of their energy improvement works, capped at $1.2 million. 

4.                  Some jurisdictions have made it mandatory for new buildings to install solar panels. In Singapore, we have no plans at this stage to mandate solar panel installation on buildings because some building owners may prioritise other rooftop uses such as greenery, or their rooftops may not be suited to solar installation due to factors such as shading from neighbouring buildings. 

5.                  The Government strongly encourages all building owners to install solar panels if it is feasible to do so. With ongoing global uncertainty in energy prices, solar installation can provide building owners with savings and greater predictability on their electricity bills, while contributing to Singapore’s overall energy resilience. In recent weeks, some local solar vendors have reported an increase in interest in solar panels among private building owners. For building owners who may be concerned about costs, some solar vendors offer “rent-to-own” or “solar leasing” models that allow building owners to enjoy the benefits of solar installation with little to no upfront cost. 

6.                  Mr Kenneth Tiong has asked on the Electric Vehicle Early Adoption Incentive (EEAI). The EEAI was implemented in January 2021 to encourage the early adoption of Electric Vehicles (EVs) by reducing the gap in total upfront cost between an EV and equivalent Internal Combustion Engine (ICE) vehicle. The EEAI parameters have tapered with the narrowing upfront cost gap over the years and will cease from 1 Jan 2027. As of March 2026, more than 55,000 electric cars and taxis have benefitted from the EEAI. 

7.                  The Government will continue to push for solar deployment in Singapore and will consider additional measures to accelerate solar adoption if there is a need to do so.