The Royal Gazette has published a royal decree granting income tax relief of up to 200,000 baht for individuals who install on-grid rooftop solar power systems at home. The measure, effective from March 3, 2026 until December 31, 2028, allows eligible taxpayers to claim the exemption once in the tax year their system is successfully connected to the electricity grid.
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Formally titled the “Royal Decree Issued under the Revenue Code on Tax Exemption (No. 805) B.E. 2569 (2026)”, the regulation takes effect from the day after its publication. The decree states that His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua has commanded its promulgation under Section 175 of the Constitution and Section 3(1) of the Revenue Code, as amended by the Revenue Code Amendment Act (No. 20) B.E. 2496 (1953).
Under Section 3, the exemption applies to individuals, excluding ordinary partnerships, non-juristic groups and undivided estates, for actual payments made to purchase and install a solar electricity generation system on a roof, rooftop terrace or any part of a building used for occupation. The system must be connected to the grid of the Metropolitan Electricity Authority (MEA) or the Provincial Electricity Authority (PEA), with total relief capped at 200,000 baht.
Eligibility is limited to one system per household, with installed capacity not exceeding 10 kWp. The claimant must be the same person named on the electronic tax invoice and the electricity meter and the system must be purchased, installed and approved for grid connection from March 3, 2026 onwards, with no retroactive claims permitted.
Section 4 provides a separate incentive for individuals earning assessable income under Section 40 (5), (6), (7) and (8) of the Revenue Code, as well as companies or juristic partnerships. It grants an income tax exemption equal to 50% of income corresponding to expenses paid for certified high-efficiency machinery, energy-saving equipment or materials that achieve energy conservation.
To qualify, equipment must carry a Level 5-star energy efficiency label certified by the Department of Alternative Energy Development and Efficiency (DEDE) and the Electricity Generating Authority of Thailand (EGAT). Eligible expenses must be incurred between the decree’s effective date and December 31, 2028.
Section 5 sets conditions including payment to VAT-registered operators and issuance of an electronic tax invoice in accordance with the Revenue Code. Expenses claimed under this decree cannot be used again under other tax exemptions or for activities already receiving corporate income tax exemptions under investment promotion laws, targeted-industry competitiveness measures or the Eastern Economic Corridor (EEC).
Section 6 states that the Minister of Finance is responsible for enforcing the decree. Further requirements may be issued by announcement of the Director-General.
The Nation reported the relief is expected to support household solar adoption and investment in energy-efficient technology over the next three years, with claims processed through annual tax filings following grid approval.
Picture courtesy of The Nation
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Adapted by ASEAN Now Nation 5 Mar 2026
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