Solar Power Purchase Agreement (PPA) for Singapore Condos & Commercial Buildings
$0 upfront investment. Pay only for the solar electricity you use at rates 10-20% below SP Group grid prices. We own, maintain, and insure the system for 15-25 years.
How Solar PPA Works
A simple 5-step process from proposal to powering your building with clean energy
Site Assessment
We evaluate your roof space, structural capacity, and electrical infrastructure
Custom Proposal
Receive a detailed proposal with projected savings, system size, and PPA terms
MCST Approval
We help you present the proposal to your MCST for approval
Installation
Our team installs the system with minimal disruption to residents
Start Saving
Begin purchasing clean solar electricity at rates below grid prices
Solar PPA: Pros & Cons
Understand the advantages and considerations before making your decision
- Zero Upfront Cost
No capital expenditure required. Preserve cash flow for other building improvements.
- Immediate Savings
Start saving 10-20% on electricity costs from day one of operation.
- No Maintenance Hassles
Argyle Solar handles all maintenance, repairs, insurance, and monitoring.
- Predictable Energy Costs
Fixed annual escalator (1-3%) vs volatile grid rate increases (3-5% historically).
- Hedge Against Rising Rates
As SP Group rates increase, your savings grow larger over time.
- Green Building Credentials
Improve your building's BCA Green Mark rating and attract eco-conscious buyers/tenants.
- Long-Term Commitment
15-25 year contract. Early termination may involve fees.
- No Ownership Benefits
You don't own the panels, so no asset depreciation or property value increase from the system.
- MCST Approval Required
Requires 75% approval by share value at a General Meeting.
- Roof Space Commitment
Solar panels occupy roof space for the contract duration, potentially limiting future uses.
- Lower Long-Term Savings
Total savings over 25 years are typically 20-30% less than purchasing outright.
- Transfer Complexity
Selling the property requires PPA transfer or buyout negotiations.
Sample Financial Overview: 500-Unit Condo
Realistic projections for a large condominium with 1,000 solar panels (400 kWp system)
Based on 480,000 kWh annual consumption. Grid rate increases 4% yearly. PPA rate increases 2% yearly.
| Year | Grid Rate (est.) | Solar PPA Rate | Annual Cost (Grid Only) | Annual Cost (PPA) | PPA Savings |
|---|---|---|---|---|---|
| Year 1 | S$0.28/kWh | S$0.22/kWh | S$134,400 | S$105,600 | S$28,800 |
| Year 5 | S$0.32/kWh | S$0.24/kWh | S$153,600 | S$115,200 | S$38,400 |
| Year 10 | S$0.37/kWh | S$0.27/kWh | S$177,600 | S$129,600 | S$48,000 |
| Year 15 | S$0.43/kWh | S$0.30/kWh | S$206,400 | S$144,000 | S$62,400 |
| Year 20 | S$0.50/kWh | S$0.33/kWh | S$240,000 | S$158,400 | S$81,600 |
PPA contract ends at year 20. Outright purchase system lasts 25 years.
PPA vs Outright Purchase: 25-Year Comparison
See how PPA compares to purchasing the same 400 kWp system outright over 25 years
| Factor | Solar PPA | Outright Purchase |
|---|---|---|
| Upfront Cost | S$0 | S$540,000 |
| Year 1 Electricity Cost | S$105,600 | S$0 (self-generated) |
| Maintenance Cost | S$0 (included) | ~S$75,000 (25yr) |
| Total 25-Year Cost | S$2,736,000 (20yr) + S$292,800/yr after | S$615,000 (system + maint) |
| Total 25-Year Savings vs Grid | S$1,056,000 (20yr only) | S$3,552,000 |
| Net Benefit (25yr) | S$1,056,000 | S$2,937,000 |
| Payback Period | Immediate savings | ~4 years |
| Ownership | Argyle Solar | MCST |
| Property Value Impact | Minimal | Positive (+S$200-400k est.) |
| Years 21-25 | Back to grid rates (~S$292k/yr) | FREE electricity (S$0) |
Key Insight: After payback in year 4, outright purchase generates 21 years of free electricity. PPA provides 20% discount for 20 years, then ends. Outright purchase saves 2.8x more over 25 years.
Frequently Asked Questions About Solar PPA
A Solar PPA is a financial agreement where Argyle Solar designs, installs, owns, and maintains solar panels on your property. You purchase the electricity generated at a predetermined rate (typically 10-20% below grid rates) for 15-25 years. There is zero upfront cost to the property owner.
Ready to Explore Solar PPA for Your Building?
Get a free, no-obligation PPA proposal tailored to your condominium or commercial building. Our team will assess your site and provide detailed savings projections.