Thai Rooftop Solar Reforms Could Ease LNG Reliance

Thailand's energy sector is facing increased reliance on imported liquefied natural gas (LNG) due to declining domestic gas production, leading to higher fuel price volatility and supply disruptions. The Institute for Energy Economics and Financial Analysis (IEEFA) recommends reforms to rooftop solar policies to mitigate this issue.

The current net billing scheme pays $0.07 per kilowatt-hour (kWh) for exported electricity, which is lower than the average retail electricity tariff of about $0.12/kWh. IEEFA suggests shifting from net billing to net metering and increasing rooftop solar buyback rates to incentivize adoption.

The proposed reforms could shorten payback periods for residential rooftop solar installations to 5.5 years for 5-kilowatt (kW) systems and 4.5 years for 10 kW systems, compared to the current six to seven years. Thailand relies on natural gas for 66% of its electricity generation.

IEEFA cites Pakistan as a case study for rooftop solar expansion, which has deployed 38 GW of solar capacity since 2018 after implementing a net metering framework and removing trade barriers.