Thailand is supercharging its residential solar energy movement with a suite of new incentives. The country’s Energy Regulatory Commission (ERC) has approved a more attractive rate for homeowners selling excess electricity back to the grid, now at THB 2.70 ($0.072) per kWh. Coupled with a newly approved personal income tax incentive, the government is making a clear statement: the future of energy in Thailand is on the rooftop.
New Solar Rooftop Incentives in Thailand
In a significant move to accelerate solar adoption, the ERC has set a new, higher purchase rate for surplus electricity from residential solar rooftops at THB 2.70 ($0.072) per kWh. This initiative is designed to empower more homeowners to invest in solar panels, reduce their energy bills, and contribute to the national grid.
To provide long-term stability and build investor confidence, the ERC has fixed this purchase rate for a 10-year period, beginning from the system’s grid connection date. Further sweetening the deal, the Thai cabinet has also approved a personal income tax incentive, directly reducing the financial burden on households looking to go solar. This dual approach of a guaranteed tariff and tax relief makes the initial investment, which can be understood better by looking at the overall plant cost breakdown, more manageable and appealing than ever before.
Revised Net Billing Scheme and Thailand solar incentives
The new rate of THB 2.70 per kWh marks a substantial improvement over the previous Net Billing scheme’s tiered rates, which offered THB 2.20 per kWh for the first five years and dropped to THB 1.68 per kWh for the subsequent five. The ERC has also extended the application deadline for the Net Billing program to December 31, 2024, giving more residents the opportunity to participate.
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Launched in 2020, the scheme has been a key driver for residential solar. This revised, higher flat rate is poised to make solar investments significantly more attractive by shortening the payback period and increasing the overall return on investment. For homeowners considering this technology, understanding the basics of solar panel manufacturing can provide valuable insight into the quality and efficiency of the panels they choose.
Thailand’s Growing Solar Rooftop Market and incentives
Thailand’s solar rooftop market is already on a strong growth trajectory. As of September 30, 2024, the total installed capacity reached 2,626 MW. This capacity is split between the Metropolitan Electricity Authority’s (MEA) service area, covering Bangkok and its suburbs, with 1,983 MW, and the Provincial Electricity Authority’s (PEA) service area, which covers the rest of the country, with 643 MW.
This expansion reflects a nationwide trend driven by government support, rising environmental consciousness, and the falling costs of solar technology. The impressive growth is detailed in the Thailand Solar Panel Manufacturing Report, which highlights the country’s rising prominence in the regional and global solar landscape. This progress places Thailand’s efforts in a wider context, which can be explored further in the Global Solar Report.
Government Support for Solar Energy and Thailand solar incentives
The Thai government’s commitment to renewable energy is formalized in its Renewable and Alternative Energy Development Plan (AEDP) 2018. The plan sets a bold target of sourcing 30% of the country’s total energy from renewable sources by 2037, with solar power playing a central role.
The ERC’s decision is a key part of this broader national strategy to promote clean energy and decrease reliance on fossil fuels. The government’s support extends beyond residential rooftops to include institutional and industrial facilities, creating a holistic approach to energy transition. This strategy is also visible in ambitious large-scale projects, such as plans for 16 floating solar projects across nine dams. The entire push relies on a sophisticated solar panel manufacturing process that transforms simple raw materials into high-efficiency energy sources.
The revised solar rooftop rate, combined with other financial incentives, is set to significantly boost solar energy adoption across Thailand. With a higher, guaranteed rate of THB 2.70 per kWh, more residents are expected to embrace solar power, propelling the nation closer to its ambitious and vital renewable energy goals.
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