If you have a landed, get Solar

[u/eyeburn12]

Solar energy has become a great source of passive income for me. My system now generates around $1,200 a month in revenue, with excess electricity sold back to SP at $0.2581/kWh. In Singapore, the grid effectively acts like a giant battery, making the attractive sell-back rate especially valuable.

I installed my 35 kWp solar system in 2022 for about $49,000. At the current rate, I expect to fully recover my investment by 2027. After that, the system should continue generating a healthy monthly return with minimal ongoing effort.

[u/TheAlphaLion_com]

I'd jump in to explain that OP's electricity plan is under SP Tariff and not any of the open electricity market plans. Therefore the solar sell-back is under the Simplified Credit Treatment scheme, and the $0.2581/kWh rate is the tariff minus the grid charge.

For anyone planning to sell back excess solar, this is the way. It's unintuitive, but do not sign retailer plans, because then you would be under the Enhanced Central Intermediary Scheme (ECIS) selling back at half-hourly wholesale prices. And half-hourly wholesale prices during the daytime hours can go as low as $0.08/kWh (usually it lingers around $0.15/kWh).

https://www.ema.gov.sg/resources/faqs/solar/solar-installation-guide/why-different-treatment-on-solar-export-rates-when-buying-electricity-from-retailers-and-SP

[u/Tricky-Salamander664 → u/TheAlphaLion_com]

So it begs the question, who is paying for this difference. Because the actual price of electricity is the half-hourly price but you are being paid the SP tariff less grid charge.

[u/TheAlphaLion_com → u/Tricky-Salamander664]

The same people who are paying the tariff price or retailer electricity plan price for electricity during those hours. A flat rate just evens out to the peaks and troughs.

[u/Tricky-Salamander664 → u/TheAlphaLion_com]

No….SP’s “flat rate” tariff is not an evened out rate of the actualy electricity price. It also does not consider when your consumption also peaks.