Here Comes The Sun

Source : TODAY, Wednesday, May 7, 2008

40 per cent funding for solar technologies

EVEN as solar energy has been identified as the main focus of Singapore's clean energy industry, there were no incentives dedicated to enticing businesses to hop onto the solar power bandwagon – until now, that is.

The Economic Development Board (EDB) yesterday unveiled the details of the Solar Capability Scheme (SCS), about two months after Senior Minister of State for Trade and Industry Mr S Iswaran first mentioned it in Parliament.

Owners of new private buildings — commercial, industrial and residential — will now be able to tap into the $20 million carrot, the latest programme introduced by the Clean Energy Programme Office (Cepo), to offset up to 40 per cent or $1 million of solar technologies installation works. But to qualify, these buildings will have to achieve the Building and Construction Authority's Green Mark Gold standard. Existing buildings undergoing major retrofitting will be also considered on a case-by-case basis.

Seventy per cent of the grant will be reimbursed from the start of the project. The rest will be disbursed two years after the solar energy system becomes operational, provided it meets minimum electricity output requirements.

Before the SCS, only public sector buildings and facilities here enjoyed incentives to develop and test clean energy solutions under Cepo's $17-million Clean Energy Research and Test-bedding programme.

Speaking at the Semicon Singapore conference, EDB managing director Ko Kheng Hwa described the scheme as "very attractive", saying he hoped it would support about 100 projects "within the next few years". As awareness of solar energy technology seeps into the industry, interest and adoption rate should grow, he added.

The long-term goal, however, is to "enlarge the 'practice field'" so as to build up industry expertise in incorporating solar energy technology into design and engineering, noted Mr Ko, who is Cepo's executive director.

More importantly, the skills set will be "exportable" as demand for eco-friendly developments grow globally. "We believe that this scheme will go a long way in building up critical capabilities among various players in the solar energy ecosystem, including system integrators, architects, engineers and developers," he added.

Asked why a scheme to urge the adoption of solar energy technology emerged only now although the Government had announced a $350-million fund for clean energy research and development last March, Mr Ko explained that the clean energy initiative is only about a year old and at this early stage, it was already a "significant step".

But with solar-derived electricity costing two to three times more than normal electricity now, would the scheme entice businesses to make the switch?

Mr Christophe Inglin, managing director of Phoenix Solar, said the financial support will "make a big difference" when companies consider adopting green technologies. It will also complement the Green Mark Incentive Scheme — where building owners are rewarded for environmentally friendly practices — nicely, he added.

Meanwhile, the Clean Energy International Advisory Panel will sit for its first meeting here in June, said EDB. It was formed to advise Cepo on the overall development of the clean energy industry in Singapore.