Thailand proposes 50 billion baht solar subsidy for up to one million homes

Finance Minister Ekniti Nitithanprapas said the proposal is expected to be approved at a Cabinet meeting on 27 October, with applications to open soon after. The scheme would also offer low-interest loans and tax benefits for panels fitted to homes or land, he told reporters.

"Today, we import a lot of our energy, we're among the top buyers globally," Ekniti said. He said this "was not a sustainable solution".

The proposal cleared a government screening committee with a proposed 50 billion baht ($1.5 billion) budget, Finance Ministry Permanent Secretary Lawaron Sangsanit said. Each household could claim the subsidy once.

Households could install panels on rooftops or on the ground, use the electricity and receive payment for surplus power sent into the distribution network. Registration could open in mid-November. Eligibility rules have not been released, but applicants would likely need an electricity account or a registered meter, The Thaiger reported.

Funding and loans

The subsidy would be funded out of a 400 billion baht emergency borrowing package announced earlier in 2026 to cushion the economic effects of the Middle East war, The Straits Times reported. The 50 billion baht budget would be one-eighth of that package.

The Government Savings Bank, Government Housing Bank and Bank for Agriculture and Agricultural Cooperatives are expected to take part, according to The Thaiger. Impakter named the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives as financing upfront costs, with repayments deducted from electricity sales revenue.

Daily News reported one proposed loan option would charge 2.5% interest over seven years with no collateral, which could help households cover costs beyond the 50,000 baht cap. Impakter reported tax exemptions on certain imported solar components.

Bills and the grid

A 5-kilowatt system could bring in 1,000 baht ($29.65) a month by selling unused power back to the grid, officials said. That income could help offset installation costs, and households could also lower their electricity bills.

Under the Metropolitan Electricity Authority's buy-back arrangement, excess power can be sold at 2.20 baht ($0.07) per unit over a 10-year term, and the Provincial Electricity Authority is also part of the wider sell-back system. At that rate, 1,000 baht a month equals about 455 units of surplus power. The proposal builds on an existing framework that lets households sell extra solar electricity.

Around 60% of electricity production in Thailand comes from natural gas, with renewables making up almost 11%, according to government data from January to July 2026. Imported LNG made up 32% of its natural gas in the same period.

Much of the gas has historically come from offshore production or via pipeline from Myanmar, but declining production has forced Bangkok to step up LNG imports. Qatar was a major supplier, but its gas infrastructure has been hit by the US and Israeli war with Iran, as has energy production across the region.

Thailand aims to have 51% of domestic electricity generated from renewable sources by 2037.

What happens next

Impakter reported the Interior Ministry is weighing an expansion to 1.5 million households and that grid upgrades, including smart meters and battery storage, will be needed to accommodate the rise in distributed generation.