The cost of a PV system depends on the system size, choice of equipment (panels and inverters), permitting costs, and labour costs. Other cost-defining factors also include the condition of the building, accessibility, method of installation and more.
Depending on the individual’s power usage, you can expect varying rates of return on your PV installation. With the development of the solar industry, there are several solar financing options that you can go with.
A full system purchase is the straightforward option that many customers go for.
You have the ownership of the solar energy system and you reap all the direct benefits it brings over the entire time. Owning your own solar energy system builds personal wealth through energy savings and by increasing the market value of your building.
A solar Hire Purchase (HP) is an installment plan arrangement whereby a customer agrees to a contract to acquire the solar pv system by paying an initial down payment (e.g. 10% of the total) and repays the balance of the price of the pv system plus interest over a period of time.
Solar HP is advantageous to consumers because it spreads the cost of expensive items over an extended time period where the purchasers are unable to pay for the goods directly.
Solar leases and solar Power Purchase Agreements PPAs are similar to renting your solar pv system. You enter into an agreement with the solar leasing company that entitles you to the benefits of the system (i.e., the energy that the solar panels generate) for the term of the contract, which is generally around 20 years.
Under these arrangements, the solar leasing company owns and maintains your solar panel system, so it is entitled to the rebates and financial incentives that are available for the solar panel system.
Consumers benefit from those savings through purchasing electricity from the leasing company at lower electricity rates.
BCA introduced BREEF in 2011 to offer financing to offset the high upfront costs, through an energy performance contract arrangement. It is similar to a hire purchase.
With the scheme, applicants can obtain financing from the Participating Financial Institutions and pay off the loan through the energy savings reaped. BREEF can cover the cost of equipment, installation and professional fees with a maximum loan tenure of 5 years.
The first residential solar loan has just been made available!
To accelerate the adoption of clean energy in Singapore, Sembcorp Power and OCBC Bank partnered to offer a residential solar loan to landed homeowners. SunPro Energies is an appointed partner of Sembcorp Power for the installation of solar panels.
Contact us to find out more about this initiative.
