Brighter savings, greener living: Thailand advances tax incentives to promote household power generation and renewable energy use

Aiming to encourage households to generate electricity for their own use, reduce the electricity cost burden on citizens, and promote wider adoption of clean energy nationwide, the measures also support Thailand’s long-term goal of achieving carbon neutrality while advancing a sustainable energy transition. 

First measure: Household solar rooftop tax deduction 

Individual taxpayers, excluding ordinary partnerships or groups of persons, who own residential properties and install an on-grid Solar Rooftop system with a capacity of not exceeding 10 kilowatts (kW) may claim a personal income tax deduction based on the actual expenses incurred, including VAT, for the purchase and installation of a Solar Rooftop system up to THB 200,000, subject to the following conditions:  

• The taxpayer’s name must match the electricity meter holder.  
• The tax benefit is limited to one person per one meter per one system.  
• Installation must occur from the effective date of the law until 31 December 2028.  
• Grid connection approval from the relevant electricity authority is required, and a full electronic tax invoice (e-Tax Invoice) must be issued for purchase and installation, showing seller details, beneficiary information, invoice date, item description, and total amount.  
• The expenses cannot be claimed under any other tax incentive scheme, either in whole or in part.  

Second measure: Installation of energy conservation equipment  

Individuals with assessable income under Section 40 (5)–(8) of the Revenue Code, such as business owners and freelancers, as well as companies or juristic partnerships, may deduct expenses at 1.5 times with a 50% income tax exemption on the actual expenses incurred for the purchase of energy efficient machinery, equipment, or materials, subject to the following conditions:  

• The machinery, equipment, or materials must be energy-efficient products, certified with a five star energy efficiency label.  
• The items must be new, unused, and ready for use by 31 December 2028.  
• A full electronic tax invoice (e-Tax Invoice) must be issued for the purchase.  
• The expenses must not be claimed in any other tax incentive scheme.  

Reference (in Thai): 

• The Revenue Department News No. PorChorSor 3/2569. Retrieved from the Revenue Department. 

Disclaimer: The measures are currently pending enactment into law.