Singapore Solar Investments Help Cut Fossil Fuel Import Costs

Investments in solar energy saved Singapore an estimated US$97 million (S$123.8 million) in power-related fossil fuel import costs during the first five months of 2026, according to a report by the Finland-based Centre for Research on Energy and Clean Air (CREA).

Nearly all of the estimated savings came from avoided natural gas imports. CREA estimated that around US$40 million of the savings resulted from avoiding the additional premium imposed on natural gas prices during the Strait of Hormuz crisis.

According to CREA Europe-Russia policy and energy analysis team lead Isaac Levi, the savings demonstrate the benefits of Singapore’s solar expansion programme. The figures are based on modelled wholesale-price estimates.

Despite the savings from solar generation, Singapore remained heavily exposed to imported fossil fuel costs. CREA estimated that the country incurred US$8.1 billion in additional gross fossil fuel costs during the six months following the outbreak of the US-Iran war.

The report placed Singapore 13th among 171 territories for additional fossil fuel import costs during the period, highlighting the financial impact of its dependence on imported energy.

The findings underscore how solar generation can help reduce exposure to international fossil fuel price volatility, while also highlighting the broader cost implications of continued reliance on imported gas and other fossil fuels.