Solar PPA In Singapore Propels Decarbonisation. LED Lighting Upgrades Will Boost The Results.

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Solar energy from photovoltaic (PV) systems is currently considered the most viable renewable energy source available, and Solar PPA In Singapore is accelerating its rollout.

In this article, we look at what role Solar PPA plays in Singapore's decarbonisation and how pairing it with LED lighting upgrades can take savings to the next level.  

Centropi provides LED lighting and water monitoring solutions to accelerate decarbonisation in Singapore. Our goal is to provide understandable and useful content to help you decarbonise your facilities.

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Why Is Solar Power So Important In Singapore?

The EMA (Energy Market Authority) has “four switches” vital to decarbonising Singapore.

  • 1st Switch: Natural Gas
  • 2nd Switch: Solar
  • 3rd Switch: Regional Power Grids
  • 4th Switch: Emerging Low-Carbon Alternatives

According to the Meteorological Service Singapore there is an average of 5.3 hours of daily sunshine. Couple this with over 13.2 sq km of net usable area for rooftop PV deployment, and Solar remains the most viable renewable energy source available.

Hours of sunshine in Singapore - Source Meteorological Service Singapore

Given the urban density and lack of land, solar is currently the lowest-hanging fruit of the four switches available to the government, which is why it is so important.

How Abundant Is Solar In Singapore?

All solar installations are registered with the EMA, and they publish data on the roll-out of solar in Singapore.

"As of the first half of 2023, there were 7,698 solar PV installations in Singapore. Town Councils and Public Housing Common Services accounted for a high proportion of the installations at 43.9% (or 3,377), followed by Residential installations at 38.6% (or 2,971). The Non-Residential Private Sector accounted for 14.8% (or 1,138) of the total installations, while Public Service Agencies constituted the remaining 2.8% (or 212)."

Solar roll out in Singapore - Source EMA

What is Solar PPA?

Solar Power Purchase Agreement (PPA) is a financial arrangement where a third-party solar developer installs and maintains solar panels on a property, and the property owner agrees to purchase the generated electricity at a predetermined rate, which will normally be lower than the rate if it was bought directly from the grid.

This allows property owners to enjoy the benefits of solar energy without the upfront costs and maintenance responsibilities.

So, with relatively abundant sunshine and rooftops, this concept works well In Singapore and removes the barrier to entry to decarbonisation.  

How does upgrading LED lighting help with a Solar PPA?

There are four key areas to address in the decarbonisation process:

  1. How your energy is used
  2. How your energy is created
  3. What materials are used in any new building work or upgrade works
  4. How people use the building.

By installing solar under a PPA, you address #2 on this list. But what if at the same time as generating your energy, you were also using less of it as per #1 on the list?!

Well, that is where the LED Lighting upgrade comes in. If you’re:

  • using non-LED or non-investment grade LED light fittings
  • using unnecessarily high-wattage bulbs;
  • leaving lights on when not needed;
  • failing to maintain or upgrade your lighting systems;
  • deferring upgrades due to upfront costs,

then upgrading your light fittings at the same time as starting a solar PPA will give you a double bang for your buck.

Upgrading to LED lighting can significantly reduce energy consumption in a facility. You can typically expect a 50% saving in energy bills by installing LED lighting and 60-70% savings with investment-grade LED Light fittings. Using less electricity decreases the property's overall demand, making the solar power generated through PPA more significant in meeting the property's energy needs. It helps maximise the benefits of solar energy and potentially lowers the electricity costs for the property owner.

How Much Does A Lighting Upgrade Cost?

As with Solar PPA, LED Lighting upgrades can also be undertaken with little to no Capex.

If you have finance available for energy-efficiency upgrades, then consider buying the LED lighting upfront coupled with a government grant. LED lighting upgrades are pre-approved by the NEA.

If you do not have the Capex, then opt for Lighting-as-a-service (LaaS). This will get you access to the same benefits with no upfront costs.

We Already Have A Solar PPA. Is It Too Late To Upgrade My Lights?

Never! You will have already seen the reduction in carbon and energy prices via the PPA so upgrading your lights afterward is a great way to make the most of the system you have in place!

Centropi has worked on a number of projects in Singapore, partnering with local PPA providers with excellent results.

Send Ivan a WhatsApp now to learn more.

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