Thailand residential solar rooftop initiative

Thailand is developing a large-scale residential solar rooftop initiative to mitigate volatile energy prices and high oil costs. The program aims to convert households into small-scale electricity producers through significant financial and regulatory support.

Initial plans involved a $1.52 billion program targeting between one million and 1.5 million households. To assist with upfront costs, the government intended to provide subsidies of approximately $1,520 per installation and utilize state-owned financial institutions to offer specialized loans.

In a recent expansion, the National Energy Policy Council doubled the target capacity from 5,000 megawatts to 10,000 megawatts, aiming to involve approximately 1 million households. The program will utilize a ‘Net Billing’ system, allowing residents to consume their own generated electricity first and sell any surplus back to the grid at a rate of 2.20 baht per unit. The maximum capacity for selling surplus electricity is capped at 5 kilowatts per meter.

To better align with the lifespan of solar panels, the power purchase contract period has been extended from 10 years to 20 years, with the expanded framework covering the 2026–2028 period. To increase accessibility, the policy now permits ground-mounted and floating solar systems in addition to traditional rooftop installations. The government is also working on improving grid acceptance through enhanced monitoring, real-time control, and energy storage solutions, while tasking authorities with developing recycling plans for used solar panels and batteries.