Thailand Urged To Expand Tax Cuts for Rooftop Solar Panels

[webfact]

File photo for reference only. Courtesy: Wikimedia

 

The IEEE Power and Energy Society in Thailand is urging the government to expand its new tax reduction scheme for rooftop solar panel installations, aiming to boost the adoption of clean energy.

 

Designed to offer tax incentives to 90,000 households from this year to 2027, the scheme is awaiting final approval within the second half of the year.

 

Households purchasing solar panels with a power generation capacity under 10 kilowatts and costing less than 200,000 baht are eligible, as per the Department of Alternative Energy Development and Efficiency.

 

A member of the IEEE Power and Energy Society and director of Naresuan University’s School of Renewable Energy and Smart Grid Technology, Nipon Ketjoy, stated that the scheme should accommodate more participants due to the high demand for solar power.

 

Thailand’s 2024 national power development plan, expected to be approved next month, aims for renewable energy to constitute 51%, or 73.2 gigawatts, of the total power supply by 2037, up from 20% last year.

 

Nipon emphasised the importance of including small and medium-sized enterprises (SMEs) in the tax reduction scheme to alleviate their electricity costs amid the economic slowdown. “Power bills are part of their operating costs. The government should not ignore their participation to benefit from the tax reduction.”

 

He acknowledged the Finance Ministry’s potential hesitation to aid SMEs, noting that while some can afford solar power technology, others require financial support. Nipon added that if the latter is given the aid, they could better deal with energy costs, which could lead to business growth and higher tax collection for finance officials.

 

An official from the Department of Alternative Energy Development and Efficiency highlighted that Prime Minister Paetongtarn Shinawatra and her Cabinet must decide whether to adjust the scheme to include SMEs.

 

The scheme, with a budget of 20.2 billion baht, is projected to reduce electricity consumption by 585 million kilowatt-hours annually, according to the department. A local solar panel distributor, New Energy Plus Solutions Co, previously expressed support for the tax reduction scheme as a means to lower carbon dioxide emissions, reported the Bangkok Post.
 

-- 2024-08-20

 

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[Crossy]

10 minutes ago, webfact said:

Designed to offer tax incentives to 90,000 households from this year to 2027

 

Better than nothing but an absolute drop in the ocean.

[Guderian]

A bit short on details. How much is the tax reduction, and what kind of tax do they reduce? A rebate on your income tax, or a reduction or cancellation in the VAT on the purchase? Is this scheme available to homes owned in a company name?

[J Branche]

My Opinion, most Solar will be installed by Middle Class.

A cost analysis needs to be done comparing usage, cost of Solar (roof tiles may need replacing, batteries/storage, all inverters, controllers, mounting hardware, cables).

 

For foreigners the ROI from an S&P Index fund may be better choice.

 

Lastly most Non-AC, Fan Only homes generally are easier to upgrade with LED, Newer TV, efficient Washer, efficient Refrigerator.  The place I know the 8 people consume less than 1500 baht a month.

[ronster]

Probably forget to do it , like the tax reduction on wine etc they said they would do 😂

[hotchilli]

I wonder who produces the solar panels?

[Snackbar]

Getting cheaper by the minute

[OneZero]

43 minutes ago, hotchilli said:

I wonder who produces the solar panels?

Ya, good question.  China has supposedly way over produced & was dumping on world markets (I think).  CCP would not hesitate to dump in Thailand, potentially causing a problem for Thai solar company's employment & profitability.

[motdaeng]

it's likely that this is once again tied to countless regulations, guidelines, and forms,

making it not worth the effort to get a tax reduction.

 

as we all know, thai bureaucracy has no limits, following the motto, "more and

as complicated as possible is better than just simple and straightforward!"

[OneZero]

7 hours ago, OneZero said:

Ya, good question.  China has supposedly way over produced & was dumping on world markets (I think).  CCP would not hesitate to dump in Thailand, potentially causing a problem for Thai solar company's employment & profitability.

China’s Not-So-Secret Economic Weapon (amac.us)

Quote: "The concept of the state using its control of markets to wield excess manufacturing output as an economic weapon against capitalist nations has a long history in communist thought. Mao Zedong, China’s first communist leader, was an avid proponent of the writings of early Soviet philosopher Lyubov Axelrod, who proposed that the oversupply of capitalist markets with cheaper products manufactured by the communist state-sponsored companies could undermine the power of Western capital.  But it was Mao’s successor, Deng Xiaoping, who strategically prepared Chinese industry to actually implement this goal – a goal that Xi Jinping has fully embraced.