Solar Panels in HDB Estates

Dr Janil Puthucheary asked the Minister for National Development whether further installation of solar panels in HDB estates will result in incremental cost savings for the respective Town Councils.

Dr Janil Puthucheary asked the Minister for National Development whether the contracts for the installation and maintenance of solar panels in HDB estates will be awarded to a number of companies via tenders so as to increase the opportunities to gain experience with this technology.

Mr Khaw Boon Wan: At the current state of technology, solar energy costs more, watt for watt, than electricity from the grid. However, as the cost of solar energy is expected to fall over time, HDB has embarked on a pilot programme to test-bed the technology and to build capabilities in HDB and the industry.

As this is done on an experimental basis, HDB plans to install solar panels in only 3% of HDB blocks, thus covering only a small percentage of overall electricity consumption. In these pilots, HDB either pays for the installations fully, or subsidises 30% of the upfront cost in a solar leasing model, where private companies own and maintain the solar panel systems. The solar energy generated is then either passed on to the Town Council for free or sold to the Town Council at a subsidised rate by the leasing company to power lighting at common areas, water pumps and lifts. So, while solar energy costs more than grid electricity, the participating Town Councils will enjoy some savings because of the subsidies that the Government provides for this capability building programme.

As technology develops, and when solar energy costs less than electricity from the grid, the systems can be installed more widely and Town Councils will be able to enjoy savings even without subsidy.

Dr Janil has also asked whether the contracts for the installation and maintenance of solar panels in HDB estates will be awarded via tenders to increase the opportunities for companies to gain experience with this technology. Indeed, HDB has been procuring solar PV systems through open tender via Gebiz. Since 2009, HDB has awarded 10 contracts to six local companies. Some of these companies are gaining experience not just locally, but overseas as well. HDB will continue to procure future contracts through open tenders.

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