Thailand's Rooftop Solar Growth Halted by Weak Incentives

Thailand's rooftop solar growth is being hindered by weak financial incentives and policy uncertainty, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). The country has significant solar potential, but its current policies are limiting adoption.

The report found that Thailand's power sector remains heavily reliant on natural gas, which accounts for 66% of electricity generation. As domestic gas production declines, the country is becoming increasingly dependent on liquefied natural gas (LNG) imports, increasing exposure to global fuel price volatility and supply disruptions.

The state utility and buyer of last resort, Electricity Generating Authority of Thailand (EGAT), has had to bear substantial subsidy costs, with losses from past energy crises totaling over THB36 billion (USD1 billion) by March 2026. To address this issue, the report recommends reforming rooftop solar policies to encourage consumer energy independence, ease financial strain on state utilities, and reduce exposure to volatile global LNG markets.

A key policy change suggested is transitioning from net billing to net metering, allowing consumers to offset electricity consumption at retail rates and reducing payback periods. The report also recommends increasing rooftop solar buyback rates, streamlining tax incentives, removing restrictive solar capacity limits, and accelerating the deployment of solar-plus-battery energy storage systems.

The report examines Pakistan's rapid rooftop solar expansion as a case study, highlighting the impact of supportive policies on solar adoption. Since 2018, Pakistan has deployed 38GW of solar capacity by implementing an attractive net metering framework, offering generous buyback rates, and removing trade barriers.