Solar energy is booming in Singapore and throughout Southeast Asia. The harnessing of solar energy has turned a corner in recent years, morphing from expensive and exotic to viable, accessible, and cost-effective.
We’ve gotten to a point where homeowners can completely rely on solar air conditioning to achieve comfortable indoor environments.
Policy-makers in Singapore and across the globe are not taking these changes for granted. There are many new programs available for people in the solar energy sector to make money off of it.
This article is a brief primer on how to profit from solar energy in Singapore.
Let’s dive in!
1) Become a Solar Developer
If you have vacant land that you’re not using, and liquid assets in your possession, becoming a solar developer is an excellent route, if you want to profit from solar energy. Ideally, you’ll need about 7 to 8 acres for each megawatt.
For this investment to make sense, you should know that one megawatt of solar energy can provide enough electric power for 200 homes. Your project will enable homeowners to install solar air conditioners and achieve a comfortable indoor environment.
Since it is a big project, you can take advantage of cost cuts from wholesale ground-mounting. If your resources allow, you can go over one megawatt for more profit. For such a project to give you a reasonable return on investment, you cannot go lower than a megawatt.
You need to work on interconnecting your projects as well because it permits you to operate parallel with Singapore’s power grid. It is a huge hurdle, but the consolation is the utility grid cannot say no to you.
You should scope your project’s interconnection potential to find out how much you’re likely to spend. For such a project to succeed, you have to work with experts in the solar energy sector.
2) Sell Solar Power into your Grid
Any company that joins in on the solar energy trend has the advantage of selling excess power to energy suppliers for profit. If you own a solar energy company, you need to look at all factors contributing to profit and potential loss when you’re selling energy.
This way, you can achieve cost-effective transactions and build relationships to help grow your solar-powered enterprise. One key factor to consider is the size of your company. The amount of solar energy you can generate determines your profit margins.
It is a key component when looking at your long-term profitability and savings strategies. A solar energy company needs to be large enough for the profit to offset the money that goes into production.
Getting a reasonable ROI is the only way you can make it in the solar energy sector. Many publications place the threshold at one million KW of power per year. You can break this down with your technicians and determine which areas of your company need improvement.
It is no secret that the feasibility for power generation tends to favor larger and more established companies.
However, smaller companies can also jump on the bandwagon using renewable energy credits. Note that one solar renewable energy credit represents a megawatt of power generated from solar energy.
If you own a business that generates its own solar power, you should take advantage of the products solar air conditioner Singapore offers. A solar hybrid air conditioner in each room ensures that your employees have a favorable working environment. Due to the hot and humid climatic conditions in Singapore, working without air conditioning can significantly reduce productivity.
You also need to enter into a metering and billing agreement with your local power utility. The net metering agreement allows you to connect your PV system to the grid. To avoid being charged for net power usage, you should ensure that you generate more power than your company’s consumption. This way, you get credits that help you offset costs.
3) Profiting from Solar Panel Installation
The government of Singapore is offering a tax subsidy for solar panel installations to encourage an increase in solar panel usage. This means that when you do install a PV system, the final cost is lower than the panel’s sticker price.
The best way of profiting for solar panel installation is through net metering. It allows all utility customers that generate their own solar energy to feed excess electricity to the grid. This is a billing system that credits you against your electric consumption.
Net metering significantly lowers monthly utility bills for homeowners and small business owners. The savings from what should have been your utility expenses add up over the years. You can use a solar air conditioner without worrying about the cost.
The solar energy sector is quite lucrative and there are quite a number of opportunities for you to make money. Whether you’re a large established business or a small business, Singapore has openings for you to make profit from solar energy. You need to register with the necessary authorities for smoother operations. If you’re producing more solar energy than you can consume, make sure to get into a net metering agreement.