Thailand Solar Energy Market Segmented By Technology (Photovoltaic Systems and Concentrated Solar Power Systems), By Solar Module (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells, and Others), By Application (Residential, Commercial, and Industrial), By Region, Competition, Forecast and Opportunities 2028

Thailand solar energy market

Solar energy is defined as the energy obtained from solar radiation, which can be used and transformed into different forms of energy, such as electrical and heat energy. This energy is abundant and renewable, making it an attractive replacement to traditional fossil fuels, which are finite, and they also add to climate change. Solar energy can be employed through various technologies, including solar cells that change sunlight directly into electricity, or concentrated solar energy systems.

Thailand’s government has started its target for solar photovoltaic (PV) or solar power. According to Thailand Power Development Plan 2018-2037 and Alternative Energy Development Plan 2018-2037, Thailand aims to achieve a new PV installed capacity of 9 290 MWp (new PV 8 740 MWp and new PV hybrid 550 MWp) as well as the 2 725 MW (AC) of floating PV systems by 2037. This contributes to around half of all electricity produced from renewable energy sources till 2037. When incorporating the project that already got the power purchasing agreement (PPA) of 2 849 MWp, the total install capacity of the PV system in 2037 is expected to achieve 12 139 MWp.

Since 2019, Thailand has launched the promotion of solar rooftop systems installation for the Thailand People Incentive Program for residential consumption purposes with the measure to sell the excessed electricity back to the grid. These projects were conducted by Provincial Electricity Authority (PEA) and the Metropolitan Electricity Authority MEA

Investment in Renewable Energy

The Thailand solar energy market is projected to grow due to risings investments in infrastructure renewable energy sources, favorable government laws, and subsidies to support innovative new technology across the country. Additionally, renewable energy capacity is likely to be increased by two terawatts in the Asia Pacific region countries including Thailand, over the next decade. Renewable energy is driven by rising population growth, strong economic performance, and significant market potential. Also, Thailand plays an important role in this growth. The country’s electricity demand is expected to double by the end of 2040, which is twice the global average rate. Furthermore, there is a wide range of regions in the country, including Bangkok, Eastern, Northeastern, Southern, and Northern. The government has increased their investment in these regions to focus on renewable energy & clean energy and declining carbon emissions till 2050, as per the Paris Agreement.

For instance,

• June 2023National Power Supply Public Company Limited (NPS) has completed the installation of the first phase of the 60 MW floating solar power plant on the well. The plant will start generating electricity in the fourth quarter of 2023. Also, the company is installing a 90 MW Floating Solar Farm Phase 2 which is expected to be completed and ready to generate electricity in the first quarter of next year.
• March 2023Falken Tires, a global tire company, announced the construction of extensive solar panel installation on a single facility, covering an area of 100,000 square metres, equivalent to over 18 football pitches. This installation is being constructed at the Sumitomo Rubber Industries (SRI) factory in Thailand, where Falken is a subsidiary. The installation comprises 40,000 solar panels with a combined output of 22MW and is set to be completed in two years.

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The rising focus on low carbon emissions has had a direct influence on the residential solar energy market. As Paris Agreement, while improving their efficiency and performance and solar energy is an ideal solution the market players are now looking to reduce their CO2 emissions. The adoption of solar energy helps to decrease the dependence on other forms of energy including fossil fuels, coal, and oil. Also, allowing market players to produce electricity from a renewable energy source. Furthermore, in addition, the employ of solar energy has the additional benefit of regulating temperatures and lowering stress on cooling systems and air-conditioners in commercial and industrial settings. Currently, with the increasing demand for cost-effective energy solutions and low-emission, solar energy is becoming an increasingly attractive option for businesses. The utilization of solar energy raises environmental sustainability, disaster resilience, and efforts to oppose climate change. Also, rapid global phase-out of coal to decrease costs and accomplish low-carbon objectives.

The adoption of clean renewable energy has raised. Also, this includes improving air quality by promoting rural development with off-grid electricity using solar energy. Thus, the produced energy is then utilized to generate electricity or can be collected in batteries and then use later. Therefore, these various types of applications enhance the demand for solar energy is rise globally. In some cases, the price of renewable energy is competitive, and unsubsidized renewable energy is less expensive as compared to new conventional generators. Thus, above mentioned factors enhance the need for solar energy along with the need for sustainable energy systems.

Specific Investment Programmes Across the Country

In 2020, the decentralized rooftop PV systems installation was carried out by private sectors under various business models and utilities, i.e., the Provincial Electricity Authority (PEA) and the Metropolitan Electricity Authority MEA. This resulted in more installation of PV rooftop systems in the commercial, and industrial sectors of Thailand in 2020. The implementation of this scheme was aimed for both self-consumptions and PPA/private PPA aspects. Since 2019, Thailand has launched the promotion of solar rooftop systems installation for the Thai People Incentive Program for residential households for self-consumption purposes with the measure to sell the excessed electricity back to the grid. These projects were conducted by PEA and MEA. Commercial and industrial PV systems were carried out by private sectors that could be via renting and leasing PV systems. The power purchasing contract was developed and signed between the land/building owner and the systems owner/investors.

Recent Developments

• In January 2022, the key market player named Billionaire Gautam Adani’s logistics-to-energy conglomerate set up a new subsidiary, named ANIL to undertake projects of green hydrogen, manufacture of wind turbines, and generation of low carbon electricity, batteries, and solar modules as it looks to become the world's largest company of renewable energy and manufacture the very less costly hydrogen.
• In October 2022, the Energy Regulatory Commission of Thailand passed a regulation to set up a feed-in-tariff (FIT) scheme for renewable energy, including utility-scale solar, battery energy storage, wind, and biogas. The Thailand government has invested around USD 0.057 per kWh over 25 years for solar and for solar plus storage.

Market Segmentation

The Thailand solar energy market is divided into technology, solar module, applications, and regions. Based on technology, the market is segmented into photovoltaic systems and concentrated solar power systems. Based on solar module, the market is segmented into monocrystalline, polycrystalline, cadmium telluride, amorphous silicon cells, and others. Based on applications, the market is segmented into

Market Players

Some of the major market players in the Thailand solar energy market