Prime Minister and Interior Minister Anutin Charnvirakul signed the proposal on Oct 1, approving the plan to seek B75bn in loan funding for the ‘People’s Solar’ project.

The proposal has now been sent to the subcommittee responsible for screening the use of loan funds under the emergency borrowing decree for consideration.

The budget would be divided into two phases, with B50bn allocated for the first phase and B25bn for the second.

Under the revised plan, each participating household would receive a subsidy of up to B50,000 towards the installation of a solar power system.

The first phase would cover 1 million households, with a further 500,000 households added in the second phase.

The scheme was initially designed for rooftop solar installations but has been expanded to include ground-mounted and floating systems.

Deputy Interior Minister Deputy Interior Minister Polapee Suwunchwee, who oversees the Provincial Electricity Authority (PEA) and Metropolitan Electricity Authority (MEA), said the change was intended to allow households and farmers whose roofs are unsuitable for solar panels to participate.

Households may instead install panels on suitable land around their homes, while those with ponds or other suitable water areas may install floating solar systems.

“Not every house is suitable for rooftop solar installation,” Polapee said. “Therefore, if a house has ample space to receive sunlight, they can install an on-ground system, or if they have a large pond, they can install a floating system.”

Participants must have an electricity meter, he said.

Households will be allowed to install systems with a generating capacity of up to 10 kilowatts. However, the government will purchase surplus electricity from each household up to a maximum of 5kW.

The buyback rate will be B2.20 per kilowatt-hour under a 20-year contract, using a net-billing arrangement.

Smart meters required for the two-way electricity system will be installed free of charge by the Electricity Generating Authority of Thailand (EGAT), according to the project details.

Three state financial institutions – the Government Housing Bank, Government Savings Bank and Bank for Agriculture and Agricultural Cooperatives – will also provide solar installation loans at an interest rate of 2.5% per year, with repayment periods of up to seven years.

Revenue from electricity sold back to the grid would be deducted directly from loan instalments. Any remaining amount could be used by participants to repay existing bank debts.

The government also plans to impose requirements on companies installing the systems. Contractors will have to meet international standards, employ resident engineers, demonstrate financial stability and be registered on the relevant electricity authority’s approved vendor list.

The requirements are intended to reduce the risk of fraud and ensure installations meet technical standards.

The project is expected to open for public registration from Nov 1, although the date remains subject to an official announcement and approval of the loan proposal.

Deputy Interior Minister Polapee previously said more than 2,300 specialised installation companies had registered to participate.

The state electricity authorities would be able to handle installations for an estimated 300,000 to 400,000 households, with private companies expected to undertake the remainder, according to the ministry.