Level the solar field - Bangkok Post

The government's rooftop solar subsidy scheme should not become a commercial contest that only the biggest installers can afford to enter. Such concerns follow complaints from small operators that the government's requirements for rooftop solar installers put them at a disadvantage.

The government is offering subsidies of 50,000 baht per household for up to 1 million homes, funded by a 50-billion-baht framework. Installers must provide a 50,000-baht bank guarantee for each job, with a six-month deadline to complete the work. They must also provide a separate 10,000-baht security deposit for after-sales obligations over seven years.

These requirements make sense. Rooftop solar systems are a substantial investment and involve electrical and fire safety risks. Consumers should not be left to deal with contractors who lack the capacity to complete installations or the ability to provide after-sales maintenance or compensation. The government is right to insist on proper standards and enforceable guarantees. Consumer protection must come first.

There is still a caveat. Tough terms for operators can create an uneven playing field. For smaller firms, finding financial guarantees for multiple jobs can tie up credit facilities and working capital. Larger companies with stronger financial backing are better placed to absorb these costs and take on a greater share of the business.

Rather than lowering standards, the government should help these small players fulfil their financial obligations without compromising the safety and product standards they are obliged to deliver. The authorities should consider a quick credit or guarantee facility to help qualified small and medium-sized enterprises meet the requirements. A revolving or portfolio-based guarantee system could also be explored, alongside clear deadlines for inspections, grid connections and the release of guarantees. The aim should be to ease the financial burden on smaller firms, not to transfer risk back to consumers. Beyond these commercial concerns lies a much broader question: whether rooftop solar will deliver meaningful savings. A standard 5-kilowatt package costs up to 140,000 baht, while the subsidy covers only 50,000 baht. Batteries, roof reinforcement and electrical upgrades are not included, leaving households to bear any additional costs.

Returns will vary according to how much electricity households use during the day and how much surplus power they can sell to the grid at 2.20 baht per unit. Without batteries, homes that consume most of their electricity at night may see more modest savings. The government should provide realistic payback estimates based on different usage patterns. Meanwhile, it remains unclear whether our electricity system has been upgraded to a smart grid that lets homeowners sell power back to the Metropolitan Electricity Authority and the Provincial Electricity Authority.

The 50-billion-baht public borrowing also demands scrutiny and close monitoring to ensure the massive state loan is spent wisely. Another issue missing from public debate is that the government must set out the costs and requirements for disposing of solar panels and equipment at the end of their service life.

The transition to cleaner energy should open the market to more people and businesses, not create a new advantage for those with the deepest pockets. A successful people's solar programme must protect households, ensure fair access for responsible businesses and demonstrate that public money is being well spent.

These editorials represent Bangkok Post thoughts about current issues and situations.

Email : anchaleek@bangkokpost.co.th