Singapore: No big cost savings yet, but solar panels vital for energy goals

Singapore: No big cost savings yet, but solar panels vital for energy goals

It is unlikely that new HDB block rooftops, designed to make the
installation of solar panels faster and cheaper, will translate to lower
conservancy fees for residents any time soon.

Nevertheless, MPs and residents told The Straits Times that solar- ready
rooftops - which the Housing Board announced yesterday would be incorporated
into all new projects - are necessary in ensuring that Singapore's energy
goals for the long run can be met.

Currently, 944 of Singapore's 10,000 HDB blocks have solar panels. HDB,
which embarked on its solar capability journey in 2008, hopes to install
panels on 5,500 blocks by 2020.

Mr Lim Biow Chuan, chairman of the Marine Parade Town Council, said the 110
blocks with solar panels in his GRC have resulted in some cost savings,
though not significant enough to lower service and conservancy charges
(S&CC).

This is because the bulk of a town council's funds still go to cleaning
costs and lift maintenance, he said.

He added: "Of course, everyone wants lower fees. The question is whether it
is sustainable to upkeep the estate in the long run. With so many lifts, I
think it is quite difficult to do so."

Another reason conservancy fees are unlikely to come down is the cost of
installing and maintaining solar panels.

While town councils do not bear the costs upfront - private developers of
solar panels do - the capital outlay is substantial and will have to be
recovered over time through selling excess electricity generated to the
grid, said Nee Soon GRC MP and engineer Lee Bee Wah.

Under HDB's solar leasing model implemented in 2011, town councils purchase
solar power generated by the panels at a rate not higher than the retail
electricity tariff. Meanwhile, companies recover costs by selling the excess
electricity that is not used to power common services like lights and lifts.

Excess solar energy enough to power about 10,000 four-room HDB flats is
exported to the grid every month, HDB said.

Mr Ang Wei Neng, chairman of the Jurong-Clementi Town Council, pointed out
that using more renewable energy sources would help slow down the rate of
S&CC increases in the near term. The bulk of town councils raised their fees
in June, with a second increase set to take place next year.

"The town council and residents benefit by not having to pay to light up the
corridors and common areas, which are costs that can add up over the years,"
Mr Ang said.

By 2020, Singapore hopes to attain 350 megawatt peak, the maximum amount of
solar power that can be generated under optimum conditions.

This means that, in theory, about 5 per cent of Singapore's energy needs can
be met via solar energy. In reality, given the possibility of cloudy or
rainy days, this would yield enough output to fuel only 1 per cent of the
country's total energy consumption.

But the Government is looking beyond 2020 and at raising the adoption of
solar power here to 1 gigawatt peak, through technological improvements and
more panels, among other things.

Eco-Business managing editor Jessica Cheam noted that Singapore can achieve
more on the solar capability front, especially as costs of installing panels
decrease.

"Although the global economy - including Singapore's - is still reliant on
fossil fuels in the short term, it is encouraging to see both the public and
private sectors making efforts to accelerate the transition into renewable
energy. It makes both economic and environment sense," she said.

The pilot for solar-ready roofs began at the six-block Punggol Edge, which
resident Delson Lee welcomed. But he also hoped that any cost savings would
be passed on to residents. "The cost savings may not be significant now, but
we are talking about 20 years from now. Depending on how great the savings
are eventually, I think residents should be entitled to rebates every one or
two years," he said.

A version of this article appeared in the print edition of The Straits Times
on September 02, 2017, with the headline 'No big cost savings yet, but solar
panels vital for energy goals'.

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Link to Original Article:
http://www.straitstimes.com/singapore/no-big-cost-savings-yet-but-solar-pane
ls-vital-for-energy-goals

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com