Rooftop systems account for just 3.6 GW of its 11.8 GW solar capacity.

Thailand could reduce its dependence on imported liquefied natural gas (LNG) by reforming rooftop solar policies, according to the Institute for Energy Economics and Financial Analysis (IEEFA) report.

In a 19 August report, IEEFA recommended that Thailand shift from net billing to net metering, raise rooftop solar buyback rates, remove capacity limits and self-consumption thresholds, streamline tax incentives, and accelerate solar-plus-battery energy storage system deployment.

The reforms could shorten payback periods for residential rooftop solar installations to about 5.5 years for 5-kilowatt (kW) systems and 4.5 years for 10 kW systems, compared with the current six to seven years.

Thailand relies on natural gas for 66% of its electricity generation. Declining domestic gas production has increased the country's reliance on LNG imports, exposing its power sector to global fuel price volatility and supply disruptions.

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The Electricity Generating Authority of Thailand, the state utility and buyer of last resort, had more than $1b in losses from past energy crises by March 2026.

“Thailand has significant solar potential, but weak financial incentives and policy uncertainty have constrained rooftop solar deployment,” said Haneea Isaad, Energy Finance Specialist at IEEFA.

Isaad added that strengthening the policy framework would allow consumer-led solar adoption to play a greater role in Thailand’s energy transition.

Thailand had about 11.8 gigawatts (GW) of solar capacity as of early 2026. Utility-scale, ground-mounted installations accounted for 8 GW, whilst rooftop solar accounted for 3.6 GW.

IEEFA said high installation costs, low buyback rates, restrictive quotas, and policy uncertainty have limited rooftop solar adoption. Rooftop solar installations cost about $936 per kW in Thailand, nearly 50% higher than in Pakistan, Malaysia, and Vietnam.

Thailand's “Solar for Thai People” net billing scheme pays $0.07 per kilowatt-hour (kWh) for exported electricity, below average retail electricity tariffs of about $0.12/kWh.

The 90-megawatt (MW) residential quota under Thailand's 2019 net billing scheme was fully used by 2024, despite being intended to run until 2030.

“Removing regulatory and financial barriers, similar to Pakistan, could boost the scale of rooftop solar adoption in Thailand, support the growth of a domestic solar installation and service industry, reduce electricity costs, and provide consumers with greater energy independence,” Isaad said.

IEEFA cited Pakistan as a case study for rooftop solar expansion.

Pakistan has deployed 38 GW of solar capacity since 2018 after removing trade barriers, avoiding strict capacity caps, and implementing a net metering framework that compensates excess generation on a kWh-to-kWh basis.

Pakistan's policies, combined with lower solar module prices and high electricity tariffs, reduced payback periods for net-metered systems to less than two years. The country had more than 350,000 connections by the end of 2025.

Thailand uses separate mechanisms for different solar segments, including a residential rooftop solar net billing scheme, feed-in tariffs for ground-mounted projects, and a community solar initiative capped at 1,500 MW.

IEEFA said Thailand's compensation rates and buyback mechanism favour self-consumption, which gives households and businesses with higher shares of on-site solar consumption greater savings and shorter payback periods.

“The government should consider adjusting its regulatory framework to improve project economics for consumers,” Isaad said.