Tax Deduction for Solar Rooftop Installation Resonates with Consumers but Requires Supplementary Measures
If all stakeholders work together systematically, Thailand will be able to unlock the potential of solar energy distributed across every rooftop
On 24 June 2025, the Cabinet approved a tax deduction measure for the installation of solar rooftop systems in residential properties, with a maximum deductible amount of 200,000 baht. However, the measure will not take effect until it is officially published in the Royal Thai Government Gazette. Eligible applicants must be residential electricity users classified under Type 1 (household use) and must be income earners under Sections 40 (1)–(8) of the Revenue Code. The installed system must be an on-grid system connected to the electricity grid, with a maximum capacity of 10 kilowatts, and all required installation documentation must be complete. The measure aims to promote household investment in solar energy amid rising electricity costs and increasing public awareness of clean energy. Nevertheless, the measure will not come into force until it is announced in the Royal Thai Government Gazette. At present, the relevant authorities are in the process of finalizing the details, and no specific date has been set for its official implementation.
The tax deduction measure is expected to serve as an incentive that facilitates household decisions to install solar rooftop systems. Thailand possesses substantial potential for household-based solar rooftop electricity generation, with the Ministry of Energy indicating that in 2023, the total potential stood at approximately 121,000 megawatts. In contrast, the cumulative installed capacity as of 2022 was only 1,893 megawatts, or around 1.6% of the total potential, reflecting significant room for further growth in installations. A consumer survey conducted by SCB EIC in early 2025 revealed that 80% of the 2,257 respondents expressed interest in installing solar rooftop systems but had yet to make a decision, in part due to the relatively high installation costs. The tax deduction measure of 200,000 baht is therefore expected to help some consumers proceed with installation decisions, as it would reduce tax burdens by approximately 6,100–50,000 baht, providing an additional incentive for investment decisions. Moreover, this measure serves as a policy signal from the government, demonstrating its commitment to supporting clean energy adoption at the household level.
Although the tax deduction measure is an incentive that aligns with consumer interests, it is not the most desired form of government support. A survey by SCB EIC found that consumers place the highest priority on “installation subsidies,” cited by 26% of respondents, followed by “tax deductions on installation expenses” at 20%. Additional support measures consumers wish to see include the liberalization of electricity sales (15%), the provision of solar rooftop systems at below-market prices (14%), the purchase of excess electricity at retail rates (13%), and the streamlining of installation permit procedures (12%). These findings indicate that consumers seek a comprehensive policy package encompassing cost reduction, system accessibility, and post-installation benefits.
Moreover, the tax deduction measure alone remains insufficient, as significant barriers continue to affect installation decisions. According to a survey conducted by SCB EIC, consumers face three primary obstacles in adopting solar rooftop systems. First, consumers encounter difficulties in verifying if service provider is trustworthy and verifying if the price offered by service provider is appropriate, with many unable to access clear and comparable information. Second, limitations in securing personal financing present a major constraint. Over 50% of current adopters use cash and personal funds for installation, reflecting the most significant barrier to financing solar rooftop systems and indicating the demand for accessible financing options among consumers. Third, the complexity of government permitting processes remains a deterrent, including interactions with relevant agencies, preparation of required documentation, and scheduling on-site inspections, all of which continue to hinder consumer decision-making.
SCB EIC has proposed three measures to enhance the effectiveness of government support for household solar rooftop installations. In the short term, it is recommended that the government prioritise at least three actions. First, the establishment of a voluntary certification program for equipment and installation service providers would assist consumers in selecting credible providers. Second, financial burdens should be alleviated through subsidy measures and the provision of low-interest loans in collaboration with financial institutions to improve consumer access to financing. Third, the permitting process should be simplified by establishing a one-stop service system for residential installations. In the longer term, the government could consider additional measures, such as liberalising electricity sales and implementing net-metering schemes to purchase excess electricity at retail prices, to accelerate the sustainable expansion of household solar energy adoption.
The private sector can play a critical role in advancing household solar rooftop installations, particularly in three key areas. First, enhancing the credibility of installation service providers is essential. This can be achieved by offering clear information and guidance on products and installation suitability, providing transparent pricing data, and ensuring warranties and after-sales services. These efforts would help reduce consumer decision-making barriers. Second, the development of accessible financing options is crucial. Collaboration between installation service providers and financial institutions to offer low-interest hire-purchase loans for solar rooftop installations would enable consumers with financial constraints to adopt these systems more easily. Third, installation service providers should offer permitting services on behalf of consumers where such services are not yet available, as many consumers continue to face difficulties navigating the permitting process themselves. Additionally, service providers could consider offering discounts on equipment and installation fees to further incentivize adoption. According to a consumer survey conducted by SCB EIC, discounts are among the key factors that would encourage consumers to install solar rooftop systems.
If all stakeholders work together in a systematic manner, Thailand will be able to unlock the potential of solar energy distributed across every rooftop and advance towards a genuinely clean energy system.