Key Takeaways:

PPA vs EPC: Which is the Better Option?

A PPA offers convenience with no upfront cost and minimal involvement, but long-term savings are limited because the solar provider retains ownership and control.
An EPC model requires upfront investment but delivers far higher lifetime savings and full ownership of the solar asset, giving property owners greater control.
EPC ownership supports MCST sustainability initiatives by enabling better energy monitoring, easier system upgrades, and the freedom to choose preferred maintenance vendors.
Solar ownership under the EPC model enhances a property’s long-term value by improving valuation, strengthening ESG performance, and aligning with BCA Green Mark standards.

Introduction

As solar adoption rises across Singapore, more property owners and Management Corporation Strata Titles (MCSTs) are turning to renewable energy. They are increasingly looking for ways to reduce operating costs, strengthen sustainability efforts, and meet Green Mark targets. The most common question when choosing a solar model today is whether to go with PPA vs EPC.

While many MCSTs initially choose solar PPA arrangements for their “zero upfront cost,” more are turning to the EPC model for greater solar ownership benefits. So, how do these two approaches differ? Let’s explore.

Understanding PPA vs EPC: What’s the Difference?

Before an MCST decides which solar arrangement is most suitable, it’s important to understand how these two models function.

Solar PPA (Power Purchase Agreement)

Under a PPA, solar companies in Singapore finance, install, and own the solar system. This model is often appealing to MCSTs because it avoids the need for a sinking fund drawdown or special levies. The MCST pays only for the solar electricity consumed by the common areas, usually at a rate lower than SP tariffs.

Here are the key traits of a PPA:

No upfront investment
Lower risk, but also lower long-term savings
The provider controls maintenance, system design, and upgrades

While this model sounds convenient, the lack of ownership limits long-term financial gains.

Solar EPC (Engineering, Procurement & Construction)

With a solar EPC, the MCST purchases and owns the solar system upon installation. While this requires upfront funding (via sinking fund allocation or a special resolution), the solar PV system becomes a long-term asset for the estate.

Key traits of an EPC include:

Ownership leads to significantly higher lifetime savings
Full control over maintenance, monitoring, and system improvements
Solar system becomes a property asset

This upfront investment often leads to stronger long-term energy savings, benefiting MCSTs in terms of financial returns and control over energy management that many property owners are actively seeking.

Why EPC Is a Strategic Choice for MCSTs

MCSTs play a major role in shaping energy use across industrial developments, especially as they plan long-term MCST sustainability initiatives. For councils prioritising lasting sustainability and financial stability, the EPC model offers compelling advantages.

1. Long-Term Financial Gains

With an EPC model, there are no recurring energy purchase payments. Once installed, the system generates clean energy for decades, allowing properties to enjoy maximum cost savings. This ensures stronger sinking fund health and lower operational costs for residents.

2. Ownership and Control

Full ownership gives MCSTs complete control over their solar system, allowing them to monitor performance and approve future upgrades with ease. They can also choose their preferred maintenance vendors and optimise energy usage based on real-time data.

3. Enhanced Property Value

Solar ownership becomes a tangible asset that enhances a property’s long-term value. It supports higher building valuation, stronger ESG credentials, and better alignment with BCA Green Mark targets. For MCSTs aiming to future-proof their developments, this combination of economic and environmental advantages makes ownership an ideal choice.

Why Partner with LHN Energy

With more than 20 years of combined experience, LHN Energy offers a complete end-to-end EPC service tailored for Singapore’s building landscape. Our capabilities include:

Comprehensive consultation and site assessment
Custom system design
Procurement of high-performance components
Building and Construction Authority (BCA)- and Licensed Electrical Worker (LEW)-certified installation
Ongoing system maintenance and monitoring

Every project follows the highest safety and efficiency standards. We always ensure that property owners gain maximum value from their solar investment.

Real-World Example: How Can Solar Ownership Deliver Real Results?

One of LHN Energy’s MCST clients in Ang Mo Kio chose the EPC route over PPA. The decision helped them to achieve impressive results, showcasing the real advantages of solar ownership.

Project Highlights:

Annual solar generation: 255,883 kWh
Cost savings (excluding RECs): S$70,500
Value of Renewable Energy Certificates: S$12,750
Total annual savings: S$83,250

This case demonstrates how solar ownership delivers strong financial returns, making EPC the smarter long-term choice for properties aiming to reduce expenses and strengthen sustainability commitments.

PPA vs EPC: Which Should You Choose?

Not sure where you stand on PPA vs EPC? If you prefer a model with no upfront cost and minimal responsibility, a PPA could be the right choice. However, if your goal is maximum savings, asset ownership, and long-term sustainability, EPC is the model that delivers true value. For Singapore properties, especially MCSTs, the EPC approach provides higher returns, stronger compliance with sustainability goals, and better long-term economic benefits.

At LHN Energy, we are committed to helping businesses and developments reduce their carbon footprint through renewable energy. With our expertise in solar energy solutions, we deliver cost-effective, future-ready systems tailored to your property’s needs.

PPA vs EPC: Which Solar Model Delivers More Value for Singapore Properties?