Solar Panel for Factory Roof: Key Considerations Before Installation

As energy prices rise and sustainability becomes a competitive business advantage, factories in Singapore are increasingly investing in solar energy. A solar panel for factory rooftops can significantly cut electricity bills, improve environmental performance, and provide long-term operational benefits. However, before rushing into installation, factory owners must evaluate several key factors to ensure a safe, effective, and cost-efficient system.

This article outlines the most important considerations to keep in mind before installing a factory solar panel system, from roof assessments and system design to regulatory compliance and return on investment.

1. Assessing Roof Suitability for Solar Panel Installation

The first and most critical step in a factory solar panel project is evaluating whether your factory roof can support a solar system.

a. Roof Space and Orientation

• Space availability: Solar panels require large surface areas. Ideally, there should be at least 10,000 to 20,000 square feet of usable space for medium to large factories.

• Orientation: South-facing or flat rooftops typically receive the most sunlight. Roofs that face east or west can also be viable with slightly reduced efficiency.

b. Shading and Obstructions

• Tall nearby buildings, chimneys, or rooftop equipment can cast shadows and reduce energy output.

• A professional site survey will identify shading issues and calculate solar exposure using tools like solar pathfinders.

c. Structural Integrity

A structural engineer should inspect the roof to determine whether it can support the weight of the solar panel for factory systems. Older buildings may require reinforcement before installation.

2. Understanding Energy Consumption and Sizing Requirements

The performance and cost-effectiveness of a factory solar panel system depend on accurately matching your energy consumption patterns.

a. Conducting an Energy Audit

• Analyze past 12–24 months of electricity bills.

• Identify peak demand periods.

• Understand which processes consume the most energy.

b. System Sizing

• A right-sized system can offset 20% to 80% of total energy needs.

• Oversizing may lead to wasted energy if you cannot sell excess electricity back to the grid.

Choosing the correct capacity is essential to maximize ROI while avoiding unnecessary costs.

3. Choosing the Right Solar Technology

There are various types of solar panel for factory installations available. Your choice of technology will affect cost, efficiency, and longevity.

a. Panel Type

• Monocrystalline: High efficiency (18–22%), space-saving, and long lifespan. Ideal for limited roof space.

• Polycrystalline: Slightly lower efficiency (15–17%) but more affordable. Suitable for larger rooftops.

• Thin-film: Lightweight and flexible but with lower efficiency. Rarely used in industrial setups.

b. Inverter Type

• String inverters: Common and cost-effective.

• Microinverters: Better for complex roofs with shading.

• Hybrid inverters: Support battery storage integration.

High-quality components will ensure your factory solar panel system operates efficiently for decades.

4. Roof Mounting and Installation Method

The installation method must align with your roof type and structural capacity.

a. Mounting Systems

• Fixed tilt: Panels are installed at a fixed angle to maximize solar exposure.

• Ballasted mounts: Suitable for flat roofs; no roof penetration required.

• Penetrating mounts: Anchored into the roof structure for enhanced stability.

b. Waterproofing and Weatherproofing

Improper installation can lead to leaks and long-term damage. Professional installers should use high-grade sealants and follow manufacturer guidelines to preserve roof integrity.

5. Understanding Singapore’s Regulatory Framework

Before installing a solar panel for factory, it’s important to understand and comply with local laws and guidelines.

a. Licensing and Permits

• Factories installing systems above 1 MWp must register as embedded generators with the Energy Market Authority (EMA).

• All installations must comply with Building and Construction Authority (BCA) codes and Singapore Standards (SS).

b. Safety and Grid Connection

• Solar systems must comply with SS 638: Code of Practice for Electrical Installations.

• Applications for grid connection need to be submitted to SP Group with necessary safety certifications.

6. Evaluating Solar Providers and Contractors

Your choice of installer can make or break the success of your factory solar panel project.

a. Experience and Track Record

• Select contractors with proven experience in large-scale industrial installations.

• Check for accreditations such as SEAS (Sustainable Energy Association of Singapore) or BCA licensing.

b. Comprehensive Services

A good solar provider should offer:

• Site assessment and feasibility study

• Engineering and design services

• Installation and commissioning

• Performance monitoring

• Maintenance and support

c. Warranty and Support

• Panel warranties should last 25–30 years.

• Inverters typically have a 5–10 year warranty.

• Look for companies offering extended maintenance contracts and real-time support.

7. Financing Options and Incentives

Cost is a major concern for many factories considering solar. Fortunately, several options in Singapore make it easier to finance a solar panel for factory installation.

a. Direct Purchase

• Highest upfront cost, but you retain full ownership and enjoy all energy savings.

• Eligible for tax incentives such as the Enhanced Capital Allowance (ECA).

b. Solar Leasing or Power Purchase Agreement (PPA)

• No upfront cost; a solar provider installs and maintains the system.

• You pay only for the solar energy consumed, often at a lower rate than SP Group’s tariff.

c. Government Grants

• Energy Efficiency Fund (E2F) by NEA offers co-funding for energy-efficient technologies, including solar panels.

• Enterprise Financing Scheme – Green supports capital investment for sustainability.

Choosing the right financing model can improve cash flow while supporting sustainability goals.

8. Battery Storage Considerations

Although Singapore is mostly grid-reliant, batteries can add value to factory solar panel systems by providing:

• Backup power during outages

• Peak load shaving

• Increased energy self-consumption

Batteries increase your system’s complexity and cost but may offer long-term benefits, particularly for 24/7 operations or factories with critical loads.

9. Maintenance Planning and Performance Monitoring

After installation, ongoing performance monitoring and maintenance ensure your solar panel for factory system continues to operate at optimal capacity.

a. Monitoring Tools

• Use web-based dashboards or mobile apps to track performance.

• Set alerts for underperformance or system faults.

b. Maintenance Tasks

• Cleaning panels (especially in dusty or industrial zones)

• Inspecting inverters and junction boxes

• Checking mounting systems and wiring

Most professional providers offer annual maintenance packages, which are highly recommended for factory owners who don’t have in-house expertise.

10. Estimating ROI and Payback Period

Before committing, it’s essential to forecast the financial returns of your investment.

a. Cost Factors

• Equipment and installation

• Engineering, permits, and approvals

• Maintenance and monitoring

b. Savings Estimation

• Monthly reduction in energy bills

• Revenue from excess energy sold to the grid (if applicable)

• Tax savings from grants and capital allowances

c. Typical Payback Period

For most factories in Singapore, the payback period ranges from 3 to 6 years, depending on system size and usage. After this, all energy savings directly improve your bottom line.

11. Future-Proofing and Scalability

Factories should consider long-term energy planning when designing their solar systems.

a. Modular Design

Ensure your system can be expanded later to accommodate increased energy demand.

b. Integration Potential

Design for compatibility with:

• Battery storage

• EV charging stations

• Smart grid technologies

Scalable design ensures your factory solar panel system remains relevant for the next 25+ years.

Conclusion: Plan Before You Install

Installing a solar panel for factory rooftops is a smart move for Singaporean manufacturers looking to cut costs, reduce carbon emissions, and increase operational efficiency. However, the success of your solar journey begins with careful planning.

From roof assessments and system sizing to financing and regulatory compliance, each decision you make plays a role in the long-term performance and ROI of your investment.

By understanding these key considerations and working with trusted experts, your factory can transition to clean energy confidently and reap the rewards for decades to come.