Thailand to buy more solar power from households ​

Thailand’s energy authorities are considering buying more solar power from households as part of efforts to promote clean energy and increase installation of rooftop solar panels.

The country’s National Energy Policy Administration Committee earlier approved a plan to buy a total of 90 MW of solar power from homeowners under a long-term purchase plan running from 2021 to 2030.

However, recent calls from businesses and members of parliament to encourage more people to use solar power have nudged authorities to adjust the purchase.

One way to encourage more people to install rooftop solar panels is to allow them to sell electricity to the state grid if they generate more power than they need.

According to the Thai Energy Ministry, officials set the power tariff for solar power bought from households at THB 2.2 ($0.06) per kWh on average.

The move to increase the purchase amount is also influenced by the new power development plan (PDP) that promotes greater use of renewable energy.

Under the PDP, renewable energy should comprise 51% of total fuel use by 2037, up from 20% at the end of last year, while coal and gas decrease to 48%, down from nearly 80% early this year. The other 1% comes from nuclear energy and new energy solutions, aiming at reducing fossil fuel usage and saving electricity.

The Energy Regulatory Commission (ERC) of Thailand was assigned to plan for how much solar power from the total of 90MW the government will buy from households each year. Last year, the ERC announced it would buy 10MW while 1,878 people offered to sell 10.2MW.

The Department of Alternative Energy Development and Efficiency is pushing ahead with a new tax reduction scheme for people installing rooftop solar panels, aiming to stimulate clean energy use. The scheme plans to grant tax privileges to 90,000 households between 2024 and 2027.