Thailand is witnessing a steady rise in residential solar energy adoption as households seek to reduce electricity costs and contribute to the country’s green transition. With rising power rates and increased awareness of renewable energy, homeowners are turning to rooftop solar panel installations as a viable long-term investment.
Transition to Renewable Energy
Solar power offers a sustainable alternative to fossil fuels, helping to lower greenhouse gas emissions while also providing significant cost savings on electricity bills. By utilizing sunlight to generate power, households can decrease their reliance on traditional electricity sources and mitigate the impact of fluctuating energy prices.
According to TMBThanachart Bank, installing a solar rooftop system can yield substantial financial benefits. For a household with an average monthly electricity bill of 6,500 baht, approximately 80% of energy consumption occurs during daylight hours, translating to 5,200 baht spent on daytime electricity. Given an average electricity rate of 4 baht per unit, this equates to about 1,300 units per month or 43 units per day.
Since solar panels typically capture sunlight for five hours a day, homeowners would need a system with a capacity of approximately 10 kilowatts (KW) per hour to meet their daytime energy needs. The estimated installation cost for such a system is around 300,000 baht, with a break-even period of approximately four years and ten months based on monthly savings of 5,200 baht.
Growth in Residential Solar Installations
The transition toward solar energy is gaining traction in Thailand. Data from the Energy Regulatory Commission’s People’s Solar Project indicates that as of 2024, there were 10,107 residential contracts for grid-connected solar electricity, reflecting an annual increase of over 1,000 households between 2019 and 2024. The total installed capacity has reached 65 megawatts, with an average household installation of 6.4KW.
A January 2024 survey by Kasikorn Research Center (K-Research) found that more than 40% of respondents expressed interest in installing solar rooftops, up from 30% in April 2023. The report attributed the increasing demand to high electricity prices and enhanced marketing efforts by solar providers.
Financial Support for Solar Energy Adoption
Several banks in Thailand are introducing green financial products to encourage solar panel adoption. Kasikornbank (KBank) offers two loan options—Home Loan Helper and Prepaid Home Loan—with interest rates starting from 5.90% per year. The Home Loan Helper provides flexible credit lines of up to 20 million baht without requiring collateral, while the Prepaid Home Loan covers 100% of the loan amount.
Siam Commercial Bank (SCB) has also entered the solar financing market through partnerships with Gunkul Engineering Plc and Huawei Technologies. Their solar rooftop packages are available on the SCB Easy mobile app, featuring high-quality solar panels, Huawei solar inverters, and full installation services via Gunkul’s GodungFaiFaa.com platform. These solutions cater to households with electricity bills ranging from 2,500 to 10,000 baht per month.
Krungsri (Bank of Ayudhya) has introduced a loan scheme for residential solar installations, offering interest rates starting at 5.75% per year for the first three years. Customers can access loans of up to 5 million baht with repayment terms of up to 30 years.
Real-World Impact
Some homeowners are already seeing tangible benefits from solar panel installations. Nawapol Gosuk, a business owner, installed solar panels at both his home and factory at a total cost of 1.7 million baht. He secured an SME loan with a special interest rate to finance the installation.
“The main goal was to lower electricity costs,” Nawapol said. “After six to seven months, my factory’s electricity bill dropped by 20,000 to 30,000 baht per month.”
However, the savings at his residence have been less significant due to factors such as location, system capacity, and solar energy variability. His home in Bangkok is equipped with a 5KW system, while his factory in a rural area has a much larger 50KW setup. To address insufficient solar power generation at home, he installed an additional battery, increasing the upfront investment and extending the break-even period beyond five years.
Despite some challenges, Nawapol remains committed to monitoring long-term savings, noting that solar power still presents a viable option for reducing reliance on conventional electricity sources. With more households exploring renewable energy options, Thailand’s solar transition is expected to continue gaining momentum.
