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SINGAPORE: When homeowner Marcus Phuah made the switch to a BMW i5 electric vehicle recently, he was concerned he would have to fork out more to power it. So, he installed a full suite of solar panels on the roof of his landed property last month to harness the sun's energy. The lawyer had hoped to cut his corner terrace's electricity consumption cost by half, as well as reduce his family’s carbon footprint. He was pleasantly surprised to realise his photovoltaic (PV) panels are generating more power than what his household uses. “My solar panel system is generating a range of 50 to 90 kilowatt-hour (kWh) of energy, and my average monthly consumption is only about 63kWh. It looks like I'll be able to more than meet my electricity consumption,” he told CNA. The system cost Mr Phuah S$33,800 (US$26,000) but he said he is likely to break even in the next five years, and perhaps even reap some reward when excess electricity is sold to the grid. “It’ll be very useful for us to contribute back to the grid with the energy that we generate through our solar panel system… because electrical consumption and demand is very high in Singapore,” he added. A competitive market, coupled with falling prices of solar panels, mean homeowners are now spoilt for choice. Over the past two years, prices for such panels have dropped by about 60 per cent, partly due to excess supply and increased efficiency. In 2020, solar panel wholesale prices were at about US$0.22 per peak watt (Wp). They went up to US$0.30/Wp in 2022 due to the energy crisis and material shortage. Today, they have dropped to around US$0.10 to US$0.12/Wp, said industry players. Experts said solar panel prices have bottomed out and are unlikely to decrease any more, but their efficiencies will continue to increase. Firms said solar power systems can last for more than 25 years, and can offset at least 30 per cent of a household’s power bills, depending on the number of panels installed and the electricity consumption. The Energy Market Authority (EMA) said that based on estimates, using solar energy at home ranges from S$0.11/kWh to S$0.15/kWh. In comparison, the cost of electricity sold by SP Group is currently about $0.30/kWh. Despite the potential lower cost of solar energy, purchasing a solar panel system commands a substantial upfront price tag that makes homeowners reluctant to commit. The average price of solar installation for a terrace house in Singapore would cost about S$20,000, said Mr Bolong Chew, co-founder and CEO of GetSolar. “Everyone in the market has a first-time owner mindset, (so) there are still a lot of trust and awareness issues with rooftop solar as a product,” he told CNA. “It’s difficult for customers to put up a hefty upfront cost to own a system, and then also have to bear the risk of high maintenance and repair costs.” To ease homeowners into the price, the firm introduced a rent-to-own model that helps power homes with solar on a flat monthly fee. EMA said that while initial costs of solar power can be significant, they can be recovered through electricity generated over the system’s lifespan. Industry experts said such a purchase could break even after about five to six years. For some homeowners such as Mr Phuah, it may even start generating money through excess electricity. Firms said increased demand is fuelling growth in their businesses. Eigen Energy, which has installed solar panel systems in about 1,000 houses so far, said it is seeing a 20 per cent on-quarter growth, on the back of competitive pricing and rising prices of electricity. Meanwhile, GetSolar said it has experienced a 30 to 40 per cent increase in demand. However, there has also been a notable increase in the number of companies entering the market in the past few years, leading to tougher competition. “There's a very low barrier to entry for such system integrators,” said Mr Albert Lim, managing director of SolarGy, adding his firm finds the increasingly saturated residential market less viable, and is focusing more on the commercial and industrial sector. Singapore's solar deployment has grown significantly, with its installed capacity increasing by about 10 times in the last seven years. EMA said the nation is on track to achieve its goal of at least two gigawatt-peak of solar deployment by 2030. Demand for solar panel installations went up by five times between 2016 to 2023, mainly driven by non-residential demand. Town councils and public housing common services were the top contributors, with more than 3,600 panels installed as of last year. For private properties, over 3,300 sites have been fitted with solar panels, more than double the number in 2020. As of February, about 3,900 Housing Board (HDB) blocks have been installed with solar panels. The remaining blocks will be fitted in batches over the next three years. Solar energy in HDB estates is used to power services like lifts, lights and water pumps, with excess energy fed into the power grid. So far, solar capacity across such estates have reached 455 megawatt-peak, equivalent to powering about 114,000 four-room flats. This is almost 85 per cent of HDB's 540 megawatt-peak solar target by 2030. With the increase in residential solar fittings, industry professionals are concerned there could be safety risks, especially if they are installed by unlicensed personnel. In the first half of this year, the Singapore Civil Defence Force responded to three fires involving solar panels. In contrast, only one such incident was reported in 2020. Solar panels can catch fire due to several reasons, including design flaws, component defects, faulty installation and excessive direct current flows, said experts. Companies said they have taken steps to come up with safety measures to prevent incidents. For example, artificial intelligence can be used to detect abnormalities. “When it picks up abnormal frequency, this means that something is wrong. (The) fault circuit interrupter will take measures immediately to stop the current, stop the electricity, to prevent fire from happening,” said Mr Nate Luo, vice president and head of smart PV and energy storage systems at Huawei Digital Power Singapore. Additionally, a rapid shutdown device can help prevent electrocution by bringing down the voltage from 1,000 volts to less than 30 volts. It can also shut down the panel to stop fires from spreading. Industry professionals are urging consumers to engage licensed contractors to install solar panels. “Go for a company that is registered, with worker safety certification that they can perform certain kinds of duties, and (they know) fire safety and installation work,” said Mr Eric Lau, a renewable energy and storage specialist. “After installation you can also easily engage another company with safety certifications to do an audit.” Contractors need to get approval from authorities, such as the Urban Redevelopment Agency and the Building and Construction Authority before installing solar panels in households. Even with the increased acceptance in harnessing the sun’s power, the nation needs to maximise solar initiatives such as looking at larger canopies and floating panels in marine spaces, said Dr Thomas Reindl, deputy CEO of the Solar Energy Research Institute of Singapore at the National University of Singapore. “Solar makes economic sense, and is by far the cheapest option of generating electricity today in many parts of the world, including Singapore. We’re looking into increasing efficiency to get more capacity into the installations,” he told CNA’s Singapore Tonight programme. Aside from decarbonising the electricity sector and mitigating the effects of climate change, solar power can also help Singapore become more self-sufficient. “Every kWh which we generate in Singapore with our own resources, we don't need to import, we don't need to ask or pay anyone. This aspect helps with getting independent in our electricity supply,” he noted. Dr Reindl added that the next step forward would be tandem solar cells – two solar cells on top of each other which leads to better conversion of sunlight and more power output. He said the technology is being developed in collaboration with local solar manufacturer REC Solar, and will help maximise the utilisation of Singapore’s scarce land space. Solar power is projected to meet about 10 per cent of the nation's energy needs by 2050.