Singapore has been striving for more sustainable development in recent years through a comprehensive movement known as the Singapore Green Plan 2030. This whole-of-nation movement initiated by the government aims to achieve long-term net zero emissions aspirations by 2050. In addition, it targets various pillars, including Energy Reset, Sustainable Living, Green Economy, Resilient Future, and City in Nature, aiming to drive significant policy shifts and encourage both public and private sectors to innovate and collaborate on green technologies.
Given such shifts to position itself as a leader in sustainability, the green energy sector in Singapore is poised to attract substantial investment opportunities.
The Rise of the Green Energy Sector in Singapore
According to the Straits Times, Singapore’s clean energy sector is gaining significant momentum, with projections indicating an 80% increase by 2032. This surge is underpinned by proactive government policies and substantial investments in renewable energy infrastructure.
Key initiatives include expanding solar energy capacity, advancements in smart grid technology, and developing low-carbon alternatives. These efforts are supported by a robust regulatory framework that encourages innovation and reduces barriers for green energy companies.
Furthermore, strong collaborations between the public and private sectors are driving this sector forward. Major corporations and startups collaborate to create sustainable solutions aligned with the Singapore Green Plan 2030.
As the nation prioritises sustainability, the green energy sector is set to play a pivotal role in achieving Singapore’s environmental goals and fostering a more sustainable future.
Investment Incentives: Government Backing for Green Ventures
The Singaporean government offers financing opportunities to encourage businesses to meet ESG (environmental, social, and governance) standards and practise sustainability. These include tax rebates, research and development grants, and green practices or venture subsidies.
One example of these government financing programmes is the Enterprise Financing Scheme – Green. This programme supports project developers and entities developing or adopting green solutions for the clean energy, circular economy, green infrastructure and transportation sectors.
Therefore, if you’re an entrepreneur looking to enter the green energy sector, you can leverage these programmes to gain financial support and resources, driving your business toward success.
How to Get Started: Steps to Launch a Green Energy Business in Singapore
If you’re planning to invest in a green energy business, here is an overview of the essential steps to establish your venture:
1. Market Research
Before establishing your green energy business, you should do thorough market research. This involves analysing current market trends, identifying potential competitors, and understanding the demand for various green energy solutions within Singapore. Market research will help you identify niche opportunities and understand the competitive landscape, enabling you to develop a robust business strategy tailored to the local market.
2. Local Regulations
Understanding local regulations and standards is crucial, as Singapore has specific requirements for environmental sustainability for companies in the green energy sector. The Energy Market Authority (EMA) sets stringent guidelines and regulations to ensure energy projects meet national sustainability goals. Compliance with these regulations is mandatory and involves adhering to standards related to emissions, energy efficiency, and the use of renewable resources.
If you need help with compliance, you can engage with local agencies and industry experts, who can provide valuable insights into the regulatory landscape and help you navigate compliance.
3. Incorporation Process
The incorporation process for a green energy business in Singapore involves several steps:
- Register with ACRA: Registering your business at the Accounting and Corporate Regulatory Authority (ACRA) establishes legal credibility and allows you to establish essential financial operations. This is because most banks and financial institutions will require businesses to be registered with ACRA before offering financial services, such as opening business bank accounts or securing loans.
- Conduct environmental assessments: Environmental assessments are often required to ensure business operations align with sustainability standards. This may involve submitting environmental impact assessments and obtaining necessary clearances from relevant authorities.
- Obtain specific licences and certifications: Companies in the green energy sector, such as low-carbon or renewable energy, must get licenses from government agencies, such as the Energy Market Authority. This is to ensure that they comply with industry standards and safety regulations.
4. Securing Financial Assistance
Securing funding is crucial for a green energy business because it provides the necessary financial resources to develop, implement, and scale sustainable technologies and projects.
You can get financial assistance for your green energy ventures in several ways. You can consider leveraging the aforementioned government incentives and support schemes or opt for private financing. Some private financial institutions are keen on green investments, providing sustainable financing options for companies with projects for renewable energy or advancing environmental sustainability.
To secure financial assistance, building a solid business plan that highlights the project’s sustainability and potential impact is essential. This plan should include detailed financial projections, market analysis, and a clear strategy for achieving sustainability goals, which will be beneficial in attracting investors and securing financial support.
How AG Singapore Can Help You with the Incorporation Process
If you need assistance with the incorporation process of your green energy business, AG Singapore has you covered. We provide comprehensive company incorporation services in Singapore, ensuring you get started on the right track. Our team is well-versed in the local regulations and requirements, guiding you through each step of the process, from registering with ACRA to preparing director resolutions. We can handle the financial aspect of starting your business while you focus on what matters the most—managing your green energy business’s operations.
Moreover, if you require support with other aspects of your financial operations, such as accounting, auditing, or payroll, AG Singapore offers a one-stop solution. You don’t have to go to separate accounting companies or auditing firms for these services. Our integrated approach means we can handle all your financial needs under one roof, providing you with cohesive and streamlined support. Whether it’s managing your financial records, ensuring compliance through audits, or handling payroll, our team is dedicated to helping your business thrive in the competitive green energy sector.
