Thailand approves a THB 50bn rooftop-solar grant scheme with 2.5% a year state-bank loans
A one-minute summary read by an AI voice.
Key points
- The Cabinet approved on 27 October 2026 a THB 50bn scheme giving up to THB 50,000 per household to 1 million households for solar installations
- Government Savings Bank, GH Bank and BAAC offer installation loans at 2.5% a year over about 7 years; surplus power is bought at THB 2.20 per unit for 20 years
- Registration runs from 27 October 2026 to 31 January 2027; the loan amount and credit criteria have not been published
Implications for lenders
Private lenders financing solar for Thai households now compete with state-bank loans at 2.5% a year over about 7 years, so pricing may need to rest on speed, installer partnerships or households outside the scheme. Underwriting can count buyback income at THB 2.20 per unit for 20 years only once grid connection is complete, since the grant is paid after connection rather than on registration.
Implications
Facts
The scheme: THE STANDARD reports that the Cabinet approved a THB 50bn 1 programme targeting 1 million 2 households. Each household can receive up to THB 50,000 3 toward installing a 5–10 kWp 4 system through a registered installer; rooftop, ground-mounted and floating systems qualify after inspection. Applicants must be Thai residential electricity users; condominiums and temporary meters are excluded. Registration with the Metropolitan and Provincial Electricity Authorities opened on 27 October 2026 and runs to 31 January 2027.
Loans and repayment: according to Thairath, the Government Savings Bank, GH Bank and the Bank for Agriculture and Agricultural Cooperatives offer installation loans at 2.5% a year 5 over about 7 years 6. Surplus power is bought at THB 2.20 per unit for 20 years 7, and households can use these earnings to repay the loan. The grant is not paid on registration: applicants must request grid connection by 31 August 2027 and complete it by 30 September 2027.
Trade-offs for households: the grant cannot be combined with the THB 200,000 8 income tax deduction for solar costs under Royal Decree No. 805, and welfare cardholders who take it give up electricity assistance of THB 315 a month, for 20 years 9. Xinhua reports estimated household power-bill savings of more than THB 24.5bn a year 10.
Analysis
State-bank credit lines this month: the solar scheme follows the Cabinet's THB 50bn 11 GH Bank home-loan line and THB 30bn 12 of Government Savings Bank funds for flood-hit SMEs. Retail and SME credit support in Thailand is again being channelled through specialised financial institutions.
Pricing: the loan rate of 2.5% a year compares with the Bank of Thailand's policy rate of 1.00% 13. Unlike most consumer loans, these loans are tied to an asset that produces a cash flow (lower power bills and buyback income), which can support repayment if systems are installed and connected on time.
Counterpoints and uncertainties
The loan amount, credit criteria and the share of the budget available as loans have not been published, so take-up and credit risk are uncertain. Grants depend on households completing installation and grid connection by the 2027 deadlines; installer capacity and inspection backlogs could delay payments. Added borrowing may stretch already indebted households, and the reported savings estimate depends on take-up.
Key figures
- Rooftop-solar household scheme budget: THB 50bn. Budget approved by the Cabinet on 27 October 2026 for the household solar grant scheme. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: THE STANDARD: Cabinet greenlights solar rooftop scheme for 1 million Thai households (2026-10-28)
- Households targeted by the solar scheme: 1 million. Number of households the Cabinet-approved scheme targets. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: THE STANDARD: Cabinet greenlights solar rooftop scheme for 1 million Thai households (2026-10-28)
- Solar installation grant per household: up to THB 50,000. Maximum government grant per household toward installation costs. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: Xinhua: Thailand launches solar subsidy for 1 mln households (2026-10-27)
- Eligible solar system size: 5–10 kWp. System size that must be installed through a registered installer to qualify for the grant. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: THE STANDARD: Cabinet greenlights solar rooftop scheme for 1 million Thai households (2026-10-28)
- Interest rate on state-bank solar loans: 2.5% a year. Interest rate on installation loans from GSB, GH Bank and BAAC under the scheme. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: Thairath: People's Solar project — THB 50,000 installation subsidy, additional loans (2026-10-27)
- Tenor of state-bank solar loans: about 7 years. Repayment period of installation loans from the three state banks. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: Thairath: People's Solar project — THB 50,000 installation subsidy, additional loans (2026-10-27)
- Buyback rate for households' surplus solar power: THB 2.20 per unit for 20 years. Price at which the state buys up to 5 kW of surplus household electricity under the scheme. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: Thairath: People's Solar project — THB 50,000 installation subsidy, additional loans (2026-10-27)
- Alternative income tax deduction for solar costs: THB 200,000. Personal income tax deduction for solar installation costs that cannot be combined with the grant. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: Thairath: People's Solar project — THB 50,000 installation subsidy, additional loans (2026-10-27)
- Electricity aid forgone by welfare cardholders who take the grant: THB 315 a month, for 20 years. Monthly state electricity-bill assistance that welfare cardholders give up if they take the solar grant. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: Thairath: People's Solar project — THB 50,000 installation subsidy, additional loans (2026-10-27)
- Estimated household power-bill savings: more than THB 24.5bn a year. Estimated total annual savings in household power bills from the scheme, as reported by Xinhua. Residential electricity users in Thailand. Basis date: 27 Oct 2026. Source: Xinhua: Thailand launches solar subsidy for 1 mln households (2026-10-27)
- Baan Kon La Lang PLUS loan budget: THB 50bn. Total credit line approved by the Cabinet for GH Bank's Baan Kon La Lang PLUS home loans. Thailand, Government Housing Bank programme. Basis date: 14 Oct 2026. Source: GH Bank press release: Baan Kon La Lang PLUS loan programme, THB 50bn (via ThaiPublica, 2026-10-15)
- GSB flood soft-loan line via commercial banks: THB 30bn. Government Savings Bank funds lent to commercial banks for on-lending to flood-affected SMEs. Flood-affected SMEs. Basis date: 20 Oct 2026. Source: Nation Thailand: Thailand approves debt relief and tax breaks for flood victims (2026-10-20)
- Bank of Thailand policy rate: 1.00% (unchanged from the 26 August 2026 decision). One-day repurchase rate set by the BOT Monetary Policy Committee. Thailand, BOT Monetary Policy Committee. Basis date: 28 Oct 2026. Source: Bank of Thailand: Monetary Policy Committee's Decision 5/2026 (2026-10-28)
Sources
- THE STANDARD: Cabinet greenlights solar rooftop scheme for 1 million Thai households (2026-10-28)
- Thairath: People's Solar project — THB 50,000 installation subsidy, additional loans (2026-10-27)
- Xinhua: Thailand launches solar subsidy for 1 mln households (2026-10-27)
- The Nation: Ekniti confirms Cabinet review of 50,000-baht solar grants (2026-10-26)
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