JTC’s 2026 mandatory solar deployment rule is shifting from a recommendation to a lease condition. Factory owners who ignore this will face lease renewal complications or non-compliance penalties. The mandate applies to new factory developments on JTC land and, increasingly, to existing flatted factories undergoing major renovation.
The core requirement is that new factories with a gross floor area above 5,000 square metres must dedicate at least 40% of their usable rooftop area to solar photovoltaic panels, subject to structural and shading constraints. For flatted factories, the requirement is proportional to the building’s total roof space, often managed through a collective solar agreement among occupants.
Many factory owners wonder if they can delay installation until year three of operation. JTC’s lease agreement now specifies a timeline: solar must be operational within 24 months of the Temporary Occupation Permit. We have seen cases where the LTA and JTC coordinated a joint inspection, and a missing solar array caused a 3-month delay in the lease commencement.
Detailed breakdown of the JTC solar mandate 2026
Scope of the mandate
The mandate applies to all new JTC-leased land and building projects, including Business 1, Business 2, and Business Park zones. Existing factories undergoing an addition and alteration (A&A) with a cost exceeding 50% of the building’s insurance value trigger the same rule. The usable roof area is defined as total flat or pitched roof space minus lift shafts, water tanks, and HVAC equipment footprints. A solar feasibility study must be submitted by a registered solar consultant.
Technical specifications and grid connection
JTC requires a minimum system performance ratio of 75% and mandates monitoring for at least two years. The generated energy can be used for self-consumption or exported to the grid under the Enhanced Central Intermediary Scheme. The connection must comply with SP Group’s technical guidelines. I recommend oversizing the inverter capacity slightly to account for future expansion, because factories tend to increase their production lines and power demand.
Flatted factory considerations
Flatted factories present a unique challenge: rooftop space is common property managed by the MCST. JTC now requires the MCST to facilitate solar installation for the entire block, or at least 60% of the stratified units must agree. A third-party operator can finance and operate the system under a lease model, with energy sold to tenants at a discounted rate. I have facilitated such agreements for a flatted factory in Woodlands where the solar savings covered the MCST’s lift upgrading sinking fund.
Lease renewal and compliance timeline
Documentation for lease renewal
JTC lease renewal now includes a clause asking for proof of solar deployment or a letter of undertaking with a timeline. We help clients prepare a compliance pack containing the PE-certified structural report, the solar system’s single-line diagram, the grid connection approval from SP Group, and a 12-month performance log. Missing any of these can stall the lease extension.
Penalties for non-compliance
Non-compliance can result in a lease extension being denied or a supplementary rent being imposed equivalent to the estimated solar energy value for the unused roof area. I have not seen a factory lose its lease solely over solar, but the financial penalty erodes the advantage of delaying. One precision engineering firm in Tuas faced an additional $2,800 per month surcharge until the array was commissioned.
How to comply efficiently
Step-by-step approach
1. Engage a structural engineer to determine roof load reserve and prepare a solar load plan.
2. Conduct a shading analysis using a 3D model of surrounding buildings.
3. Design the array layout with 1.5-metre perimeter access and DC isolator placements per SCDF.
4. Submit the plan to JTC through the GoBusiness portal, along with the PE report.
5. Procure and install the system, then test and commission with a Licensed Electrical Worker.
6. Register the system with SP Group and set up remote monitoring for the 2-year reporting period.
Choosing an installer who understands JTC rules
An installer unfamiliar with JTC requirements often omits the rooftop safety railing and anti-slip walkways, which JTC inspectors check. We install a permanent catwalk system and yellow demarcation tape as standard on factory roofs. That small detail has saved clients from re-inspection delays.
A personal perspective on the mandate
The JTC mandate makes economic sense beyond compliance. A factory consuming 30,000 kWh monthly with a 200 kWp solar system can offset 25-35% of its electricity bill at current SP tariff rates. With the rising cost of electricity, the payback is under 4 years. I worked with a food processing factory in Senoko that used the mandate as a trigger to upgrade their cold storage compressors to variable speed drives, and the combined savings halved their energy cost per unit of output.
Factory owners should see solar as a production asset, not a checkbox. Enquire with Akando Solar for a JTC compliance roadmap that ties solar sizing to your operational load profile. For more on system cost and return, our Solar energy company Singapore page has project case studies. We also connect you with financing partners who offer zero upfront capital options, so the mandate does not strain your cash flow.
References
- JTC Solar Deployment Requirement
- BCA Existing Building Structural Assessment
- SP Group Solar Interconnection Guide