Households tapping solar power in Thailand
Homeowners and small businesses are keen to save on electricity bills
Homebuyers continue to be interested in installing rooftop solar panels, with several banks offering financing options.
Thailand is transitioning towards a green economy, and individuals can play an active role in this shift.
Installing rooftop solar panels is an effective way to support the country’s green initiatives while reducing the cost of household electricity bills.
Path to Going Green
By harnessing the power of the sun to generate electricity, homeowners can reduce their reliance on fossil fuels, lower greenhouse gas emissions and promote environmental sustainability.
Using solar energy also offers significant savings on electricity bills.
TMBThanachart Bank offered a scenario to illustrate the savings potential. If your average monthly power bill is 6,500 baht and your residence is occupied throughout the day, about 80% of electricity consumption takes place during daylight hours, with 20% used at night. This means the cost of your daytime electricity usage would be 5,200 baht.
With an average electricity rate of 4 baht per unit, your daytime consumption tallies 1,300 units per month, or about 43 units per day.
Solar panels can typically capture sunlight for about five hours a day. Given a daytime consumption of 43 units per day, this equals 8.6 units per hour (43 divided by 5 equals 8.6). Since 1 unit is equal to 1 kilowatt, you would need to install a solar system with a capacity of around 10KW per hour (units) to meet your daytime energy needs.
The installation cost for such a system is around 300,000 baht.
With monthly daytime electricity costs of 5,200 baht, the break-even point would occur in roughly 58 months (300,000 baht divided 5,200 equals 58), which is four years and 10 months.
This calculation shows how solar panel installation can lead to substantial long-term savings on electricity bills.
Kasikorn Research Center (K-Research) said solar rooftop installations are increasing in the residential sector, according to data from the Energy Regulatory Commission’s People’s Solar Project.
As of 2024, the total number of residential contracts for grid-connected electricity tallied 10,107 households, reflecting an average annual increase of more than 1,000 households from 2019 to 2024.
The total installed capacity amounted to 65 megawatts, with the average household installation 6.4KW. The adoption of solar rooftops is expected to continue growing steadily, noted the project.
K-Research’s survey conducted in January 2024 found more than 40% of respondents are interested in installing solar rooftops, up from around 30% in April 2023.
“The rising popularity of solar rooftops among households is driven by their cost-effectiveness in reducing electricity bills given high power rates as well as increased marketing efforts by solar providers,” noted K-Research.
Financial initiatives
Several banks now offer green financial products, including solar rooftop loan packages, with special interest rates aimed at encouraging Thai households to embrace sustainability and reduce long-term energy costs.
Kasikornbank (KBank) offers two green housing loan options — Home Loan Helper and Prepaid Home Loan — to support green living in Thailand. Both packages offer special interest rates starting from 5.90% per year.
Home Loan Helper is a flexible loan that does not require collateral, offering a maximum credit line of up to 20 million baht, while Prepaid Home Loan offers a credit line of 100% of the loan amount.
Nathapol Luepromchai, executive vice-president of KBank, said demand from retail customers to install solar rooftop panels has continued to rise, primarily driven by a desire to save on electricity bills over the long term.
Clients are typically in the middle- to upper-income segments, earning around 46,000 baht per month, with homes priced on average at 5.1 million baht, he said.
“Our survey found homebuyers are more likely to choose homes with solar rooftop packages. About 65% of homebuyers expressed interest in installing solar panels to achieve long-term savings on their electricity bills,” said Mr Nathapol.
The bank also offers K-GreenSpace, an e-marketplace that provides information and energy-saving products for households and small and medium-sized enterprise (SME) clients. The services include loans for solar rooftops and electric vehicle chargers.
Siam Commercial Bank (SCB) provides green financial services to its clients and homeowners installing solar rooftop panels, in partnership with Gunkul Engineering Plc and Huawei Technologies. They offer a household solar rooftop package on the SCB Easy mobile app.
SCB partnered with GodungFaiFaa.com, an online platform for electrical and solar equipment under the Gunkul brand, to offer solar rooftop packages for household installation.
The packages include high-quality solar panels, Huawei solar inverter equipment, and comprehensive installation services provided by Gunkul.
GodungFaiFaa.com offers solar solutions designed to help customers reduce electricity costs and address environmental concerns. These solutions cater to a wide range of customers, from households to small offices, with electricity bills ranging from 2,500 baht to roughly 10,000 baht a month.
Krungsri (Bank of Ayudhya) also offers a loan scheme for residential solar roof installation projects, available to customers with either a mortgage-free home or a mortgage.
The package provides a minimum interest rate of 5.75% per year for the first three years, with loans of up to 5 million baht and repayment terms for up to 30 years.
These banks want to help Thai households reduce their energy costs while contributing to a greener future.
Change for a Better Future
Nawapol Gosuk, an entrepreneur, said he installed solar rooftop panels at both his home and his small factory several months ago, with a total installation cost of around 1.7 million baht.
He received a recommendation from a bank that offered him an SME loan with a special interest rate under a green finance package to support the cost of installation.
“The primary goal of installing solar panels was to save on the cost of electricity bills,” said Mr Nawapol.
“After 6-7 months, my factory’s electricity bill decreased by 20,000 to 30,000 baht per month from the previous usage.”
He said he estimated the solar rooftop investment at his factory should break even within the targeted five-year period.
However, the cost savings at his residence have not been as significant because of his home’s location, the variability of solar power, and the system’s capacity, said Mr Nawapol.
His home in Bangkok is equipped with a 5KW solar system, while the factory, located in a rural area, has a much larger 50KW system.
Given the insufficient amount of solar power generated at his residence, Mr Nawapol installed an additional battery, increasing the upfront cost.
As a result, he said he expects it will take more than five years to reach the break-even point for the investment at his residence.
“At home, I intended to use solar energy primarily for the air conditioner during both the day and night. However, the solar energy generation has been less than expected, so it’s mostly used during the night,” said Mr Nawapol.
“I plan to monitor the results over a longer period.”
Source: https://www.bangkokpost.com/business/general/2971666/households-tapping-solar-power
