Rising electricity bills have delivered a stark reminder to transit into renewable energy. The popularity of solar panels has skyrocketed, as businesses want to live more sustainably and save money.
Singapore solar power capacity has reached over 1,000 megawatts peak this year, more than halfway to its solar power deployment goals of at least 2,000-megawatt peak by 2030.
According to EMA's Singapore Energy Statistics 2023 report, the private sector has been the driving force behind the growth in solar deployment, accounting for 63.5 per cent of the total installed capacity.
However, making the switch to solar power involves more than just purchasing solar panels and having them installed. There are several crucial factors that can significantly impact the efficiency, longevity, and financial benefits of your solar energy system.
In this article, we will highlight three key points that are often overlooked.
- Understanding the importance of choosing a reliable and financially stable solar panel manufacturer.
- The role of ongoing maintenance in maximizing the performance and lifespan of your solar system
- Evaluating the financial aspects, including initial costs, financing options, and long-term savings.
If you're looking to ensure a smooth transition to solar energy for your business, you'll find today's article useful.
Let's get started!
1. Bankability of Solar Panel Brand
When a solar project is described as “bankable,” it signifies that the solar market has confidence in the project’s financial viability and reliability. Banks and other financial institutions consider it suitable for lending and investment purposes.
Numerous factors contribute to a solar project’s bankability, one of which is the proven bankability of the solar panel manufacturer.
Source: Tier 1 Panels ATS Thailand
Usually, solar panels include a 25-years performance warranty and a 12-year workmanship warranty from the solar panel manufacturer. However, a journey isn’t smooth sailing all the time.
Let say the solar panels fail due to faulty wiring in year 5 and the Tier 3 solar panel manufacturer has gone out of business, you could be left with a significant financial loss and no support.
To avoid such unfortunate situations, ensure your installer uses Tier 1 solar panels with a high bankability rating. When selecting solar panels for your roof, ask your installer about the bankability rating of the solar panel manufacturer.
At Saxon Renewables, we offer top-tier solar panels from reputable brands such as JinkoSolar, Trina, and JA Solar. These high-quality solar panels ensure reliable performance and trustworthiness, giving our clients peace of mind and confidence in the functionality of solar systems for years to come.
2. Operations & Maintenance
Understanding the costs associated with solar panel maintenance is crucial for effective budgeting and planning.
For a factory, annual comprehensive maintenance covering unlimited services throughout the year, can cost between S$5,000 to S$6,000, depending on the system size and capacity.
Alternatively, the factory owner can opt for one-time service visits as needed, with each visit costing between S$800 and S$1,000.
Most solar panels come with a 12-year product warranty and a 25-year power output warranty, while inverters usually have a 5-year warranty.
These warranties cover the replacement of defective equipment, but labour costs for troubleshooting and installing replacement panels are often not included.
So How Regular Maintenance Can Maximize Your Solar Panel Performance?
1. Increase Energy Efficiency for Greater Savings on Electricity Bills
Dust, dirt, and debris can significantly hinder the amount of sunlight your panels absorb, lowering their energy output, thereby reducing the savings on electricity bills.
Keeping your panels clean maximizes the production of solar energy, and achieves the highest return on your solar investment.
2. Early Detection and Prevention of Issues
Regular maintenance allows for the early detection of potential issues such as loose connections or shading, preventing minor problems from escalating into costly repairs.
Do you also know that neglecting maintenance could void your warranty coverage?
Yes! Most solar equipment warranties require customers to undergo regular maintenance as a condition for being able to issue a warranty claim in the event of a manufacturer defect.
However for Solar PPA, the developer takes responsibility for all products and services related warranty coverage.
3. Project Cost
The cost of a solar system depends on the number of solar panels that can be fitted to your roof space. For instance, an industrial building with a roof space of 2000 square meters could install an estimated 300 kWp solar system, costing approximately S$350,000 for a complete turnkey solution.
With an average of 3.2 sun hours per day in Singapore, this system could generate around 350,000 kWh annually. Assuming your Solar Tariff is S$0.25/kWh and you fully consume the solar energy within your building, the return on investment (ROI) could be as low as 4 years!
After the ROI period, you would have 350,000 kWh of clean and renewable solar energy to consume for free for the next 20-30 years.
Indeed, installing solar panels may be costly upfront.
However, it’s crucial to recognize that this investment comes with significant long-term benefits beyond electricity savings and achieving sustainability goals.
i. Long Term Financial Blessings
Adopting solar panels offers financial stability amidst economic uncertainties. By securing a stable energy supply, businesses can shield themselves from fluctuating utility prices.
ii. Resources for Business Expansion
By reducing energy costs over time, businesses can redirect these savings towards other growth initiatives. These may include expansion, research and development, or enhancing employee benefits.
iii. Enhanced Property Value and Attractiveness
Adopting solar panels is a strategic move that can significantly enhance your property’s value and appeal. Eco-friendly and energy-efficient properties are increasingly sought after, making them more attractive to potential investors and tenants.
Is installing solar panels still too costly for you?
Consider exploring Solar PPA.
At Saxon Renewables, we cover everything from installation to maintenance, offering customers zero upfront costs and a fixed discounted solar electricity rate as low as SGD 0.10 per kWh. We take care of all the operational and maintenance aspects, so you can rest assured and focus on enjoying the benefits of solar energy!
Now that you have a clearer understanding of the 3 important considerations before installing solar panels and the alternative option available, feel free to share your thoughts with us by getting in touch at info@saxonrenewables.com.
Saxon Renewables
Rising environmental concerns and the urgent need for climate action are driving the push for decarbonization. Unlike in the past, where sustainability was optional, today's businesses face significant regulatory, social, and market pressures.
Saxon Renewable’s Solar Power Purchase Agreement (PPA) model makes solar energy accessible and affordable for commercial and industrial organizations.
Business owners can benefit from our hassle-free service, which includes customized rooftop designs, comprehensive operational and maintenance services, all parts warranty, insurance, and a guaranteed minimum electricity generation.
With no upfront investment required, business owners can start saving on electricity costs as soon as the solar system is activated.
Get your first free consultation to kick start your sustainability journey today.
