Thailand, with its favorable geographic location and abundant sunlight, has faced challenges in adopting rooftop solar due to regulatory complexities, overlapping permits, and slow approval processes. Even small, non-commercial installations require licenses under multiple laws, including the Energy Industry Act B.E. 2550 (2007), the Factory Act B.E. 2535 (1992), and municipal construction regulations.
To address these challenges, the Thai government has taken steps to consolidate and simplify solar energy governance through a dedicated legal framework. The draft Solar Power Promotion Act aims to reduce regulatory red tape, promote self-consumption, and encourage private sector participation in the field of clean energy.
In April 2025, Thailand’s Department of Alternative Energy Development and Efficiency (DEDE) held a public consultation on the Draft Promotion of Solar Power Usage Act. This proposed legislation aims to streamline the adoption of solar photovoltaic (PV) systems, particularly for self-consumption in commercial and industrial sectors, aligning with Thailand’s goal of achieving carbon neutrality by 2050.
Key Provisions of the Draft Act
Although the full text of the draft has not been not publicly released, key highlights based on official summaries and expert commentary include:
- Exemption from Licensing for Small-Scale Installations: The Draft Act exempts certain solar PV systems—particularly those used for self-consumption in residential, commercial, and industrial buildings—from licensing obligations under the Energy Industry Act. This removes a major barrier for small-scale solar development.
- Designation of “Solar Equipment Areas”: The draft law allows designated zones—such as building rooftops or certain industrial estates—to be declared as “solar equipment areas,” in which simplified permitting or exemption protocols may apply.
- Reduction of Bureaucracy: The Act streamlines approval processes for installing solar panels, especially in urban and industrial settings. It removes the need for redundant permits under construction, environmental, or factory-related laws if the installation meets safety and zoning requirements.
- Clear Definitions and Scope: The draft law provides clear legal definitions for:
- Self-consumption: electricity produced for use within the premises.
- Distributed generation: small-scale production near consumption points.
- Energy storage systems: integration with solar PV systems for enhanced grid resilience.
This clarification helps delineate responsibilities among regulators and utilities.
- Digital Permitting and Interconnection: The Draft Act introduces a centralized digital platform for registration, notification, and data sharing between applicants and authorities. It also establishes guidelines for interconnecting rooftop solar systems to the grid, in particular for systems intending to sell surplus electricity.
- Promotion of Innovation and Investment: The draft encourages innovation in solar-related technologies, including energy storage, smart grid systems, and solar-as-a-service models. Incentives for startups and SMEs may be provided through ministerial regulations under the Act.
- Oversight and Enforcement: The Energy Regulatory Commission will be designated as the central authority overseeing implementation, standard-setting, and conflict resolution. Penalties for non-compliance and provisions for public participation are also expected.
Overview of the Draft Act
The Draft Act consists of five sections. An outline of each section is provided as follows.
Section 1: General Provisions
The inaugural section of the Draft Act delineates the overarching provisions, emphasizing the enhanced promotion of solar power system installations through a more efficient and streamlined process.
Section 2: Installation of Solar Power Systems
The Draft Act pertains exclusively to solar power system installations for self-consumption. However, it facilitates the sale of electricity to governmental utilities, such as the Electricity Generating Authority of Thailand, the Metropolitan Electricity Authority, the Provincial Electricity Authority, or organizations designated by the Minister.
As stipulated in the Draft Act, any sale, distribution, exchange, or provision of electricity must adhere to the purchase rates and criteria announced by the Director-General and approved by the Minister.
Section 3: Control and Disposal of Solar Power Systems
To guarantee the safe collection, disposal, or destruction of solar energy system equipment, such activities must adhere to the criteria established by the Director General. For businesses engaged in the collection and disposal of solar energy equipment, the Director General of DEDE must grant permission to carry out such activities. Additionally, licensed electronic waste disposal facilities will be considered authorized establishments for solar energy system disposal and must notify the Director General and adhere to the relevant criteria.
Section 4: Administrative Duties
As per the Draft Act, officials possess the authority to access premises for inspecting the installation of solar energy systems to ensure compliance with the Draft Act. The primary objective is to guarantee that the installation of solar energy systems is conducted safely and without any potential hazards.
Section 5: Penalties
Furthermore, the Draft Act outlines potential penalties for violations. Non-compliant activities can result in imprisonment for up to three years and/or fines of up to THB 100,000 (approx. 2,700USD).
Impact and Issues of the Draft Promotion of Solar Power Usage Act
Policy Implications and Expected Impact: If passed, the Act is likely to:
- increase adoption of rooftop solar by households and businesses;
- boost investor confidence in solar infrastructure and technology providers;
- reduce Thailand’s dependency on fossil fuel imports; and
- contribute significantly to the country’s 30% renewable electricity target by 2037, as stated in the latest Power Development Plan (PDP).
It also aligns with the country’s BCG (Bio-Circular-Green) Economy model and its National Energy Plan, which emphasizes decentralization, green energy, and carbon neutrality. The Draft Act also complements Thailand’s broader energy strategy:
- Renewable Energy Targets: Under the draft Power Development Plan (PDP) 2024–2037, renewable energy is projected to account for 51% of total electricity generation by 2037, with solar energy contributing 16%.
- Carbon Neutrality: Facilitates progress towards Thailand’s commitment to achieving carbon neutrality by 2050.
Key concerns raised in the public consultation include:
- Potential loss of revenue for utilities from reduced grid consumption.
- Grid stability and technical readiness for high levels of distributed generation.
- Fair access to subsidies and incentives across income groups.
These issues are expected to be addressed through secondary regulations and stakeholder dialogue once the Act is finalized.
As of April 15, 2025, the DEDE is conducting a public consultation to refine the Draft Act. Stakeholders are encouraged to participate in the hearing process to provide feedback and suggestions. The finalized legislation is expected to play a pivotal role in accelerating Thailand’s transition to sustainable energy.
The Draft Promotion of Solar Power Usage Act represents a forward-thinking and potentially transformative piece of legislation. By lowering legal and regulatory barriers to solar adoption, Thailand is positioning itself as a regional leader in decentralized, clean energy policy. The coming months will be critical as feedback from the public and stakeholders helps shape the final law.
