Every Singaporean homeowner knows the feeling. You open your latest SP Group utility bill, especially after a particularly hot month, and you feel a jolt of “bill shock.” Your air-conditioner is a non-negotiable part of life here, but the cost can be a constant source of stress.
We’re often told that a 5-tick aircon is more energy-efficient, but what does that actually mean for your wallet? Is the higher upfront price really worth it?
At Vedha, we believe in giving homeowners clear, honest answers. So, we’ve done the math. This isn’t based on vague promises, but on a real-world calculation using the latest 2025 SP Group electricity tariff. The results are surprising and prove that choosing a 5-tick aircon is no longer a luxury—it’s one of a financially savvy investment you can make for your home.
3 Big Reasons to Go 5-Tick Now
Three key factors have aligned in 2025 to make this decision easier than ever.
- Volatile Electricity Bills: SP Group tariffs fluctuate with global energy prices. While they sometimes go down, the long-term trend is unpredictable. The only guaranteed way to lower your bill is to reduce your consumption (kWh), which is exactly what a 5-tick aircon is designed to do.
- Government “Cashback” (The S$400 Climate Voucher): The enhanced Climate-Friendly Households Programme gives every Singaporean household S$400 in vouchers for eligible 5-tick aircons. This is a game-changer that can completely wipe out the price difference.
- The 2025 NEA Mandate: From 1 April 2025, the government will require all new multi-split aircons sold in Singapore to have a 5-tick rating. Buying one now “future-proofs” your home and aligns you with the national standard.
A Real-World Cost Comparison
Let’s put a 5-tick system head-to-head with an older, less efficient 3-tick model.
The Assumptions:
- We’re using a typical System 3 aircon setup (for 2 bedrooms and a living room).
- We’ll assume a standard usage of 8 hours per day (e.g., overnight use).
- We’re using the official SP Group tariff for Q1 2025: 30.65 cents per kWh (including 9% GST).
The Contenders:
- 5-Tick Model: A popular Mitsubishi Electric Starmex System 3, which has a rated power consumption of 1.33 kW.
- 3-Tick Model: A comparable Panasonic System 3, with a standard power consumption conservatively estimated at 2.80 kW.
The Calculation: The daily running cost is calculated as: Power (kW) x Hours of Use x Electricity Tariff.
- 5-Tick Model Daily Cost: 1.33 kW x 8 hours x S0.3065/kWh=∗∗S3.26**
- 3-Tick Model Daily Cost: 2.80 kW x 8 hours x S0.3065/kWh=∗∗S6.87**
The difference is staggering. When we project this over a year, the savings become undeniable.
| Metric | 3-Tick Model (2.80 kW) | 5-Tick Model (1.33 kW) | Your Savings |
| Daily Cost | S$6.87 | S$3.26 | S$3.61 |
| Monthly Cost | S$206.10 | S$97.80 | S$108.30 |
| Yearly Cost | S$2,507.55 | S$1,189.90 | S$1,317.65 |
| Note: Based on 8 hours/day usage at S$0.3065/kWh tariff. |
Is the Higher Price Worth It?
A 5-tick system can cost more upfront. In our example, the price difference is about
S$350 (S3,850forthe5−tickvs.S3,500 for the 3-tick).
So, how long does it take to get that S$350 back?
- Payback Period = Initial Cost Difference / Yearly Savings
- S
350/S1,317.65 = 0.265 years, which is just 3.18 months!
That’s right. Without any subsidies, your investment pays for itself in just over 3 months. But it gets even better.
The Climate Voucher Multiplier When you apply the government’s S$400 Climate Voucher to the purchase, the entire equation is transformed.
| Calculation Step | Amount |
| Initial Price Difference | S$350 |
| Less: S$400 Climate Voucher | -S$400 |
| Final Price Difference | -S$50 |
| Payback Period | Immediate |
| The 5-tick model is now S$50 cheaper upfront than the less efficient 3-tick model. |
There is no longer a payback period. You save money from the very first day, on top of saving over S$1,300 on electricity in the first year alone.
Make the Smartest Investment for Your Home
The numbers are clear. With the government vouchers and massive long-term electricity savings, a 5-tick aircon is no longer just an environmental choice; it’s a powerful financial strategy.
Achieving these savings, however, depends on a professional installation. A poorly installed unit will not run at its peak efficiency, costing you money in the long run. At Vedha, our BCA-trained technicians ensure your new 5-tick system is installed perfectly, so you reap every dollar of savings you’re entitled to.
Ready to slash your SP bill and make a smart, future-proof investment? Call Vedha Construction at 96540044 for a free site survey. We’ll help you choose the right NEA 5-tick system and maximize your S$400 Climate Voucher.
We specialize in Aircon installation, repair, and service. We have all type & model of recon compressor, full set & fancoil. Our technicians are highly proficient in their respective field and repairs and fixes aircon of various brands.
