On 24 June 2025, Thailand approved a tax deduction for solar rooftop systems, up to 200,000 baht, aiming to boost household solar adoption amid rising costs and environmental awareness.
Cabinet Approves Tax Deduction for Solar Rooftop Installation
On 24 June 2025, the Cabinet approved a tax deduction for residential solar rooftop installations, with a maximum deductible amount of 200,000 baht. The system must be on-grid, under 10 kilowatts, and properly documented. Eligible applicants are household electricity users under Type 1, with incomes under Sections 40(1)–(8) of the Revenue Code. This incentive aims to boost solar adoption amid rising electricity costs and heightened clean energy awareness, but it will only take effect once published in the Royal Thai Government Gazette.
Growing Potential and Consumer Interest
Thailand has vast solar rooftop potential, estimated at 121,000 megawatts in 2023, yet only 1.6% is currently installed. An SCB EIC survey found 80% of respondents interested in solar installation but hesitant due to high costs. The tax deduction could reduce tax burdens by 6,100–50,000 baht, encouraging installations. However, consumers also desire broader support, such as installation subsidies, streamlined permits, and better financing options.
Overcoming Barriers and Recommendations
Despite tax incentives, challenges remain: verifying trustworthy providers, financing difficulties, and complex permits. SCB EIC recommends a certification program, subsidy and loan schemes, and one-stop permitting services. The private sector can enhance transparency, financing accessibility, and offer permitting support. Coordinated efforts will help Thailand unlock household solar energy potential, advancing the country’s clean energy goals.
