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Jul 15 min read

How do I Set Up a Solar Panel Company


How do I Set Up a Solar Panel Company | Bestar
How do I Set Up a Solar Panel Company | Bestar

How do I Set Up a Solar Panel Company


Setting up a solar panel company in Singapore involves several steps:


1. Business Registration:


  • Choose a business structure (Sole Proprietorship, Partnership, Limited Liability Company).

  • Register your business with the Accounting and Corporate Regulatory Authority (ACRA) https://www.acra.gov.sg/.


2. Licenses and Permits:



3. Business Planning:


  • Develop a business plan outlining your target market (residential, commercial, industrial), services offered (installation, maintenance), and financial projections.

  • Research your competitors in the solar panel industry.


4. Sourcing and Suppliers:


  • Establish relationships with reliable solar panel and equipment suppliers.

  • Ensure they offer high-quality products with certifications relevant to Singapore's standards.


5. Team Building:



Additional Tips:


  • Consider offering financing options for your customers.

  • Stay updated on government incentives and programs promoting solar energy adoption.


Solar Installation Guide - Singapore


Here's a breakdown of the solar panel installation process in Singapore:


1. Planning and Assessment

  • Research: Market the benefits and limitations of solar power in Singapore.

  • Assess your suitability:  Consider your customer's roof size, orientation, and energy consumption to determine if solar is viable.

  • Cost estimates: Utilize online tools or consult solar equipment suppliers for initial cost estimates.

2. Servicing a Solar Panel Customer

  • Provide quote:  Provide quote to solar panel customer in Singapore.

  • Provide options:  Provide pricing, system specifications, warranties, and customer service.

  • Check credentials:  Employ Licensed Electrical Workers (LEWs) for installations exceeding 45kVA.

3. Signing the Contract

  • Review details: Carefully review the solar panel installation contract.

  • Understand warranties: Ensure warranties cover panels, inverter, and installation work.

  • Payment terms:  Review the payment schedule and cancellation clauses.

4. System Installation

  • Pre-installation meeting: Discuss details with the Customer, including safety procedures and access to your roof.

  • Installation process: The typical installation involves setting up scaffolding (if needed), mounting the panels, and connecting them to the inverter.

  • Inspection and testing: A Licensed Electrical Worker will inspect and test the system before connection to the grid.

5. Permission and Grid Connection

  • Application for connection: The Licensed Electrical Worker will handle submitting the necessary paperwork to SP Group for approval to connect to the grid.

6. Selling Excess Electricity (Optional)

  • Net Metering:  Excess electricity offsets your electricity bill.

  • Simplified Credit Treatment (SCT):  The most common option for residential consumers, receiving credits on your bill at a set rate.

  • Alternative Schemes:  For larger systems, consider ECIS or direct registration with EMC for market-based compensation.


How Much does it Cost to Install Solar Panel in Singapore


The cost of installing solar panels in Singapore can vary depending on several factors, but here's a breakdown:


  • Price Range: Generally, you can expect costs to range from S$15,000 to S$38,000 or even higher.

  • Average Cost: A good starting estimate for a residential system is around S$20,000, which typically covers a 10 kWp (kilowatt-peak) system.


Factors Affecting Cost:


  • Number of Solar Panels: This is the biggest factor. More panels for higher energy generation will cost more.

  • System Size (kWp): Larger systems (higher kWp) generally see a cost reduction per kWp compared to smaller systems.

  • Roof Type and Complexity: Installation on complex or fragile roofs might require additional work, increasing costs.

  • Panel Brand and Model: Premium brands or high-efficiency panels can cost more.

  • Government Incentives: Singapore offers programs that can bring down the upfront cost.


Resources for Cost Estimates:



Can I Sell Electricity Back to the Grid in Singapore


You can sell electricity back to the grid in Singapore, but it depends on your situation and the amount of electricity you generate. Here's how it works:


  • Net Metering System:  Singapore uses a net metering system. This means any excess electricity your solar panels generate after your own consumption is used to offset your electricity bill.

  • Selling Excess Electricity:  If you produce more electricity than you consume, you have two options to potentially receive compensation for the remaining amount:

  • Simplified Credit Treatment (SCT) Scheme (Most Common):  This is the most common option for residential consumers with less than 1 MWac capacity. You'll receive a credit on your monthly electricity bill based on the prevailing tariff minus grid charges. This translates to roughly 75-80% of the electricity price for the excess you generate.

  • Other Options for Larger Systems:  For larger installations or contestable consumers (who can choose their electricity provider),  alternative schemes exist like the Enhanced Central Intermediary Scheme (ECIS) or registering directly with the Energy Market Company (EMC). These options offer compensation based on prevailing market prices, potentially offering a higher return.


How do I Make a Solar Contract


There are two main types of solar contracts you might encounter in Singapore:


  1. Solar Panel Installation Contract: This is between you and a solar panel installer. It outlines the details of the solar panel system you're purchasing, including:

  • System specifications: Number of panels, brand, model, capacity (kWp)

  • Installation details:  Scope of work, timeline, warranties

  • Cost breakdown:  Equipment, installation, maintenance (if included)

  • Payment schedule:  When and how much you'll pay the installer

  1. Solar Power Purchase Agreement (PPA): This is between you and a solar energy company. In a PPA, the company installs and maintains the solar panels on your rooftop, and you buy the electricity they generate at a pre-determined rate, typically lower than your current electricity bill. The contract will specify:

  • Term of the agreement:  Usually 10-20 years

  • Electricity price:  The rate you'll pay for the solar-generated electricity

  • Maintenance responsibilities:  Who is responsible for maintaining the panels


General Tips for Reviewing a Solar Contract:


  • Read the contract carefully:  Don't hesitate to ask questions if anything is unclear.

  • Understand the warranties: Ensure the contract details warranties on the panels, inverter, and installation work.

  • Payment terms:  Review the payment schedule and any cancellation clauses.

  • Termination clause:  Understand the conditions under which you can terminate the contract (if applicable).


Additional Resources:



Resources for Selling Back Electricity:



How Bestar can Help


Bestar can be a valuable asset when setting up your solar panel company in Singapore. Here's a breakdown of how we can help:


  • Business Plan Development: We can assist in crafting a comprehensive business plan outlining your target market, services offered, financial projections, and competitor analysis.

  • Financial Planning and Analysis: We can help you with financial forecasting, budgeting, and securing funding if needed.

  • Marketing and Sales Strategy: We can advise on developing a marketing strategy to reach your target audience and create effective sales strategies.

  • Regulatory Compliance: We can guide you through the complex web of regulations related to solar panel installation in Singapore, ensuring you comply with licensing requirements and safety standards.

  • Business Operations: We can offer advice on setting up your business operations, including human resource management, accounting practices, and risk management.

  • Contract Review and Negotiation: Bestar can review and negotiate contracts with suppliers, customers, and partners, ensuring they are favorable to your business and protect your interests.

  • Legal Compliance: We can advise you on all legal aspects of running your business, including company registration, employment law, intellectual property, and data privacy.

  • Permits and Licenses: We can help you navigate the process of obtaining the necessary permits and licenses for solar panel installation, ensuring you have the proper legal authorization to operate.


Choosing Bestar:


Consider consulting with Bestar. We can provide well-rounded guidance for both the business and legal aspects of setting up your solar panel company.


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1 Comment

Katrin Jess
Katrin Jess
4 days ago

nice

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