Complete Guide to Renewable Energy Incentives in Singapore 2023

Solar Energy Incentives

Solar photovoltaic (PV) systems represent Singapore's most viable renewable energy source. The following incentives are available to support solar deployment:

1. Solar Enabler Scheme

Administered by the Energy Market Authority (EMA) and SP Group, this scheme helps to offset the cost of solar PV system installations:

• Eligibility: Businesses, town councils, and non-profit organizations
• Support provided: Up to 50% of total installation costs for solar PV systems
• Cap amount: S$1.5 million per project
• Application process: Applications must be submitted through the EMA website with detailed project proposals, including system specifications and projected energy generation

2. SolarNova Programme

Led by the Housing Development Board (HDB) and Economic Development Board (EDB), this program aggregates demand for solar PV systems across government agencies to achieve economies of scale:

• Eligibility: Government agencies, statutory boards, and town councils
• Support provided: Access to bulk procurement rates and standardized implementation processes
• Additional benefits: Technical expertise, established contractual frameworks, and performance monitoring
• Current phase: SolarNova Phase 7 was launched in 2022, aiming to deploy 75 MWp of solar capacity across multiple government sites

3. HDB Solar Leasing Model

This innovative approach allows solar PV systems to be installed on HDB rooftops without upfront capital investment:

• Eligibility: Town councils and HDB blocks
• Model structure: Private solar developers install, own, and operate the systems, selling the generated electricity to building owners at rates lower than retail electricity prices
• Contract term: Typically 20-25 years
• Benefits: Zero upfront cost, immediate electricity cost savings, and maintenance handled by the solar developer

Energy Efficiency Incentives

Complementing renewable energy adoption, these incentives support energy efficiency improvements that reduce overall consumption:

1. Energy Efficiency Fund (E2F)

Administered by the National Environment Agency (NEA), this fund supports industrial facilities and building owners in improving energy efficiency:

• Resource-Efficient Grant: Co-funds up to 50% of qualifying costs for energy-efficient equipment and technologies, capped at S$600,000 per project
• Energy Assessment Grant: Co-funds up to 50% of the cost of energy assessments and audits, capped at S$200,000
• Energy Management Information System Grant: Supports implementation of systems that track and analyze energy consumption patterns, with up to 50% co-funding capped at S$350,000

2. Green Mark Incentive Scheme for Existing Buildings (GMIS-EB)

This Building and Construction Authority (BCA) scheme supports energy efficiency retrofits in existing buildings:

• Eligibility: Owners of existing non-residential buildings
• Support provided: Cash incentive of up to S$15/m² of GFA for Green Mark certified buildings, with additional incentives for higher certification tiers
• Cap amount: Up to S$1.5 million per project
• Requirement: Projects must achieve minimum 15% energy improvement over the original building performance

3. Productivity Solutions Grant (PSG)

While primarily focused on productivity, this Enterprise Singapore grant includes support for energy-efficient equipment:

• Eligibility: Singapore-registered businesses
• Support provided: Up to 70% of costs for pre-approved energy-efficient equipment including LED lighting, energy-efficient air conditioning, and smart energy management systems
• Cap amount: S$30,000 per company per year
• Application process: Applications must be submitted through the Business Grants Portal

Financing and Tax Incentives

Several financial mechanisms are available to improve the economics of renewable energy investments:

1. Green Bonds Grant Scheme

This Monetary Authority of Singapore (MAS) initiative supports the issuance of green bonds to finance renewable energy projects:

• Eligibility: Singapore-based financial institutions and businesses issuing green bonds
• Support provided: Covers 100% of the costs of obtaining external reviews for green bond issuances
• Cap amount: S$100,000 per issuance
• Qualifying criteria: Bonds must align with international green bond standards and include renewable energy or energy efficiency components

2. Enhanced Capital Allowance (ECA) for Energy-Efficient Equipment

This tax incentive allows businesses to write down the capital cost of qualifying energy-efficient equipment:

• Eligibility: All businesses registered in Singapore
• Benefit: 100% write-off of the capital cost of qualifying energy-efficient or renewable energy equipment in the first year of purchase
• Qualifying equipment: Includes solar PV systems, energy-efficient chiller systems, variable speed drives, and building energy management systems
• Application: Claimed through income tax filing

3. Investment Allowance – Energy Efficiency (IA-EE) Scheme

Administered by the Economic Development Board (EDB), this scheme supports larger energy efficiency projects:

• Eligibility: Companies registered in Singapore with significant energy consumption
• Support provided: Additional 30-50% tax allowance on qualifying capital expenditure, on top of normal capital allowances
• Qualifying projects: Investments must lead to energy efficiency improvements of at least 15% and meet minimum investment thresholds
• Application process: Applications must be submitted to EDB before project commencement

4. Green Loan and Sustainability-Linked Loan Grant Scheme

This MAS scheme supports businesses in obtaining favorable financing for green projects:

• Support provided: Defrayment of expenses for independent assessment, rating, and verification of green loans
• Cap amount: S$100,000 per loan facility
• Qualifying criteria: Loans must be directed toward projects with clear environmental benefits, including renewable energy installations

Grid Connection Incentives and Policies

These incentives and regulations make it easier to connect renewable energy systems to Singapore's electricity grid:

1. Simplified Connection Process for Small Installations

SP Group has streamlined the connection process for small-scale solar installations:

• Eligibility: Solar PV systems up to 1 MWp
• Benefit: Simplified technical requirements and expedited approval process
• Timeline: Approval typically granted within 7 working days for systems under 10 kWp

2. Enhanced Central Intermediary Scheme

This scheme simplifies the sale of excess solar energy back to the grid:

• Eligibility: All grid-connected solar PV system owners
• Benefit: SP Group acts as a central intermediary to purchase excess solar electricity
• Payment rate: Prevailing half-hourly wholesale electricity price minus grid charges
• Billing arrangement: Automated credit on monthly utility bills

3. Solar Generation Credit Scheme

This scheme provides a credit for the contribution of solar energy to Singapore's climate goals:

• Eligibility: Non-contestable consumers with embedded solar PV systems
• Credit rate: 3.88 cents per kWh for all solar electricity generated (both consumed and exported)
• Application: Automatic for registered solar PV systems

Support for Innovative Renewable Technologies

For businesses and researchers working on next-generation renewable energy solutions, these programs provide additional support:

1. Energy Innovation Research Programme (EIRP)

Jointly administered by EMA and EDB, this program supports R&D for innovative energy solutions:

• Eligibility: Research institutions, companies, and consortia based in Singapore
• Support provided: Grants covering up to 70% of qualifying R&D costs
• Current focus areas: Advanced solar technologies, energy storage solutions, smart grid technologies, and low-carbon hydrogen
• Application: Through periodic competitive calls for proposals

2. Enterprise Singapore Sustainability Innovation Programme

This program supports early-stage commercialization of innovative clean technology solutions:

• Eligibility: Singapore-based startups and SMEs with innovative renewable energy or energy efficiency solutions
• Support provided: Co-funding of up to 80% of qualifying costs for proof-of-concept and test-bedding projects
• Cap amount: S$2 million per project
• Additional support: Business mentorship, technical validation, and market access support

3. Jurong Island Renewable Energy Test-Bed

This initiative provides a real-world test environment for new renewable energy technologies:

• Eligibility: Technology developers with near-commercial renewable energy solutions
• Support provided: Access to designated test-bed areas on Jurong Island, technical support, and performance monitoring
• Current focus: Floating solar, building-integrated PV, and energy storage technologies

Residential Incentives

For homeowners and residential property managers, these programs support renewable energy adoption:

1. Residential Solar Leasing Programs

Several private providers offer solar leasing programs for residential properties:

• Eligibility: Private residential property owners (landed properties and private condominiums with MCST approval)
• Structure: Zero upfront cost installation with monthly payment based on electricity generated
• Typical savings: 10-20% off conventional electricity rates
• Contract term: 15-25 years, with various buyout options

2. HDB Green Towns Programme

This comprehensive program includes renewable energy components for HDB estates:

• Initiative components: Solar panel installation, smart lighting, rainwater harvesting, and cool paint coatings
• Implementation: Coordinated through town councils with no direct cost to residents
• Benefits: Reduced common area electricity costs and improved sustainability of public housing estates

Application Tips and Best Practices

To maximize your chances of securing renewable energy incentives, consider these practical tips:

1. Strategic Planning

• Conduct a comprehensive energy audit before applying for incentives to identify the most impactful renewable energy and efficiency measures
• Consider bundling multiple interventions to meet minimum thresholds for larger incentive schemes
• Plan project timelines carefully to align with grant application cycles and funding availability

2. Application Success Factors

• Engage qualified energy consultants to develop technically sound proposals
• Clearly quantify projected energy savings and carbon reduction with verifiable methodologies
• Include detailed implementation plans, including risk mitigation strategies
• For innovation grants, emphasize novel aspects of the solution and alignment with Singapore's strategic priorities

3. Post-Approval Considerations

• Maintain detailed documentation throughout project implementation
• Adhere strictly to reporting requirements and timelines
• Implement robust measurement and verification processes to document actual performance
• Consider engaging an experienced grant management consultant for complex projects

Future Outlook: Emerging Incentives

Several new initiatives are under development that may provide additional support for renewable energy adoption in Singapore:

1. Carbon Tax and Credit Mechanisms

With Singapore's carbon tax set to increase to S$25 per tonne of CO₂e in 2024 and up to S$50-80 per tonne by 2030, new mechanisms are being developed:

• Potential carbon credit system allowing renewable energy generators to monetize emissions reduction
• Enhanced tax offsets for renewable energy investments that reduce carbon footprint
• Industry-specific transition support linked to renewable energy adoption

2. Emerging Technology Support

New support mechanisms are being explored for emerging renewable technologies with potential in Singapore:

• Initiatives for low-carbon hydrogen production and infrastructure
• Support for building-integrated photovoltaics (BIPV) that incorporate solar cells into building materials
• Microgrid development initiatives for enhanced grid resilience

3. Regional Grid Initiatives

Singapore is exploring regional grid connections that could create new opportunities:

• Investment incentives for participation in the ASEAN Power Grid initiative
• Support for renewable energy import projects and infrastructure development
• Cross-border renewable energy certificate trading mechanisms

Conclusion

Singapore offers a comprehensive suite of incentives to support renewable energy adoption across residential, commercial, and industrial sectors. By strategically leveraging these programs, property owners and businesses can significantly reduce the financial barriers to implementing clean energy solutions while contributing to Singapore's sustainability goals.

As the renewable energy landscape continues to evolve, these incentive programs are expected to adapt and expand to support more diverse and innovative approaches to clean energy generation. Staying informed about these opportunities and planning strategically can help maximize the benefits available to support your green energy transition.