Thailand is doubling the capacity of its public solar-power programme to 10GW from 5GW, in the latest move to reduce the economy’s exposure to imported fossil fuels and volatile LNG prices. The expanded scheme is expected to cover around 1 million households, with Finance Minister Ekniti Nitithanprapas approving the expansion as the government accelerates its energy-transition agenda.
Under the programme, households will be able to consume the electricity they generate and sell surplus power back to the grid at THB2.20 per kilowatt-hour. Individual systems are capped at around 5kW per electricity meter, while the programme has also been expanded to include ground-mounted and floating solar installations. The government has not yet provided a detailed implementation timetable for the full 10GW programme, although an initial rooftop-solar rollout is expected to begin in mid-October.
The move comes against a difficult energy backdrop. Thailand relies heavily on natural gas for electricity generation, while domestic gas production is declining and imported LNG has become increasingly important. PTTEP has warned that every US$3/MMBtu increase in LNG prices could raise Thai electricity prices by around 5%, with LNG currently accounting for roughly 30% of power generation and more than a quarter of gas used for electricity coming from imports.
The solar expansion is therefore more than a climate policy. It is increasingly an industrial-competitiveness measure as Thailand attempts to attract data centres, electronics manufacturers and other electricity-intensive investments. The government’s draft Power Development Plan 2026 targets a 50% clean-energy share within 10 years, alongside expanded direct power-purchase agreements, smart grids and energy storage.
For businesses, the key question will be whether the policy can translate into predictable and competitively priced electricity rather than simply increasing installed renewable capacity. Faster deployment of distributed solar, combined with grid upgrades and storage, could reduce peak demand on the national system and provide companies with a greater ability to hedge against future fossil-fuel price shocks.
Key points
- Public solar programme doubled from 5GW to 10GW, with coverage aimed at around 1 million households.
- Household surplus electricity will be bought at THB2.20/kWh, with individual systems capped at about 5kW.
- Thailand’s draft PDP 2026 targets 50% clean energy within 10 years, as LNG exposure and electricity demand rise.
Why it matters: Energy security is becoming a core determinant of Thailand’s economic competitiveness. A successful 10GW distributed-solar programme could lower exposure to LNG-price volatility while strengthening Thailand’s proposition for energy-intensive foreign investment.
