Government insists domestic manufacturing remains viable as import figures reveal market dominance
Thailand sourced 99.3% of its solar panel imports from China between January and July 2026, according to trade figures released this week. The import volume rose nearly 89% from the same period last year, intensifying concerns about the competitiveness of Thai manufacturers.
The Thailand Ministry of Energy confirmed the figures but cautioned that import data does not reflect the full picture of domestic supply. Officials stressed that Thailand maintains a complete production chain for solar equipment, with 32 projects across 22 companies currently holding investment promotion status. These facilities have a combined annual capacity exceeding 49,000 megawatts peak, using ฿26.68 billion worth of domestic materials and components annually.
Household subsidy scheme aims to spark local demand
A ฿50 billion rooftop solar support programme is scheduled to launch in mid-October 2026, targeting an initial 1 million households with potential expansion to 1.5 million. Each participating household may receive up to ฿50,000 in subsidies for installing rooftop or ground-mounted systems — roughly equivalent to three months' wages for a factory worker in the central region.
The scheme operates alongside a personal income tax deduction of up to ฿200,000 for solar installations completed between March 2026 and December 2028. The Metropolitan Electricity Authority (การไฟฟ้านครหลวง) and the Provincial Electricity Authority (การไฟฟ้าส่วนภูมิภาค) opened registration for installers and certified equipment from August 3 to September 30.
Households participating in the "People's Solar" net billing programme can sell surplus electricity to the national grid at ฿2.20 per kilowatt-hour for systems under 10 kilowatts peak. Contracts run 10 to 20 years. A new 500-megawatt quota opened on July 1, 2026, as part of an expanded target bringing cumulative capacity from 5,000 to 10,000 megawatts.
Policy push to revive idle factories
Thailand's Board of Investment offers eight years of corporate income tax exemption for solar projects classified as A2 priority activities. Machinery imports for equipment not yet produced domestically qualify for import duty waivers.
Officials are now discussing lowering tariffs on upstream components Thailand cannot currently manufacture, such as solar cells. A Ministry of Labour training programme is preparing Thai workers for solar panel assembly, installation, and maintenance roles.
The government expects these measures to help seven to eight existing Thai factories resume production and capture a larger share of the growing domestic market, rather than leaving the expanding demand solely to imports.
Chinese cost advantage stems from integrated supply chains
Chinese solar panels dominate imports because manufacturers there control the full supply chain from polysilicon to finished modules. China produced more than 95% of global polysilicon in 2024 and over 91% of solar cells, allowing massive scale economies that pushed production costs below ¥0.69 per watt.
Under the China-ASEAN Free Trade Agreement, properly certified components may enter Thailand at reduced or zero tariff rates, further widening the cost gap. Thai manufacturers, lacking comparable scale or domestic upstream supply, face structural disadvantages despite growing demand.
Industry observers note that several major Chinese manufacturers including Trina Solar and Jinko Solar have already established production facilities in Thailand, partly to serve regional markets and partly to navigate trade barriers in other export destinations.
Standards tightened as market expands
The Thailand Industrial Standards Institute is expanding mandatory certification requirements for dc circuit breakers, solar-specific fuses, cabling, and lithium battery storage systems. All imported equipment must meet IEC international standards and align with Thai Industrial Standards (มอก.).
The Ministry of Industry stated that safety regulations for installation personnel would also be strengthened, both to protect consumers and to build confidence in the long-term economics and safety of residential solar systems.
Looking ahead, the draft Power Development Plan 2026 targets 50% clean energy in the generation mix within ten years and 70% by 2050. Solar capacity is projected to reach 33 gigawatts by 2037 under the plan, with distributed rooftop systems playing a central role.
Throughout 2026, Thailand has approved 449 renewable projects totaling 1,607 megawatts, including roughly 400 solar initiatives split between rooftop installations and solar farms. EGAT, the state utility, is separately developing floating solar projects on three major reservoirs with combined capacity of 1,638 megawatts.
A carbon tax of ฿200 per tonne took effect in February 2026, adding regulatory pressure on heavy users to shift toward cleaner electricity sources.
