Thaila Solar SOLAR PV PROJECT DEVELOPMENT

Thailand's favorable solar PV policy has fueled the country's solar PV project development over the last several years The Thai government has been proactive in promoting renewable energy sources, particularly solar power, enacting a variety of incentives and policies to encourage their use

The feed-in tariff (FiT) scheme is one such policy; under this scheme, the government guarantees to buy electricity generated by solar PV systems at a fixed rate for 25 years This provides investors with a consistent and predictable revenue stream, making it easier for them to secure project financing

Another policy is net metering, which allows solar PV system owners to sell excess electricity back to the grid at the same price at which they purchased it This encourages individuals and businesses to invest in rooftop solar PV systems because they can reduce their electricity bills and even earn money from solar power generation

Furthermore, the Thai government has implemented tax incentives for renewable energy investments, such as tax holidays and exemptions, as well as reduced import duties on renewable energy equipment

These policies and incentives have created a favorable environment for the development of solar PV projects in Thailand

As a result, the country has seen a significant increase in solar PV capacity in recent years, with the government aiming for a total capacity of 15 GW by 2036, while current installed capacities have surpassed 3 GW. This not only assists Thailand in meeting its renewable energy targets, but it also helps to reduce greenhouse gas emissions and promote sustainable development

Thailand has put in place several favorable policies to encourage solar PV development, which has resulted in a significant increase in the number of solar PV projects being built in the country There are also several financial incentives to encourage the growth of solar projects in the country Among the most important financial incentives are:

Investment Promotion Policies: The Thai government provides investment promotion policies to encourage private investment in renewable energy projects such as solar PV This includes corporate income tax exemptions and reductions, machinery and equipment import duty exemptions, and the right to own land for investment purposes

Soft loans are provided by the Government Savings Bank (GSB) and the Export-Import Bank of Thailand (EXIM) to support renewable energy projects such as solar PV When compared to commercial loans, these loans typically offer lower interest rates and longer repayment terms, making it easier for investors to finance their solar PV projects

Subsidies and Grants: The Thai government offers subsidies and grants to help with the development of solar PV projects The Energy Conservation Promotion Fund (ENCON Fund), for example, offers subsidies to individuals and businesses for the installation of solar PV systems The Alternative Energy Development and Efficiency Department (DEDE) also provides grants for renewable energy technology research and development, including solar PV Green Bonds: The Thai government issued green bonds to encourage investment in renewable energy projects such as solar PV Green bonds are fixed-income securities that raise funds for projects that benefit the environment or the climate The proceeds from these bonds can be used to fund renewable energy projects, providing solar PV developers with an additional source of funding

These financial incentives have contributed to the creation of a favorable investment environment for solar PV projects in Thailand, attracting both domestic and foreign investors. As a result, the number of solar projects being developed in Thailand has increased significantly, assisting the country's transition to a more sustainable energy future.

The supportive policies for solar encourage citizens to go solar and contribute to the country's net-zero emission target The main government support would be to obtain incentives as well as ease of doing business for the distributed solar segment as well as large-scale projects development in Thailand