Thailand Urged to Reform Rooftop Solar Policy Amid Fossil Fuel Dependence Concerns

Thailand's reliance on natural gas has led to significant subsidy costs for the state utility Electricity Generating Authority of Thailand (EGAT). The country generates 66% of its power from natural gas, and as domestic production declines, it becomes increasingly dependent on liquefied natural gas imports. This exposes the economy to global price volatility.

The Thai government has set a target of 60% renewable energy by 2050, with solar power playing a key role. However, rooftop solar adoption faces several barriers, including high capital costs and unfavorable incentives. The current net billing scheme offers a buyback rate of THB2.2 per kilowatt-hour, which is below retail electricity tariffs.

Pakistan's recent solar boom provides a valuable case study, with the country deploying 38GW of solar capacity since 2018 by removing trade barriers and implementing an attractive net metering framework. Thailand should consider adjusting its regulatory framework to improve project economics for end-users through measures such as transitioning from net billing to net metering and offering higher buyback rates.

A transition to net metering would allow households to offset electricity consumption at retail rates, reducing payback periods to approximately four years. Offering higher buyback rates could lead to faster cost recovery for consumers and greater profitability once initial investments are recouped. Removing strict self-consumption thresholds and system capacity caps would also enable consumer-led clean energy markets to scale.