Financial measures for promoting residential rooftop photovoltaics under a feed-in tariff framework in Thailand

Thanapol Tantisattayakul and Premrudee Kanchanapiya

Energy Policy, 2017, vol. 109, issue C, 260-269

Abstract: A feed-in tariff (FiT) framework has been implemented in Thailand since 2007 to encourage and stimulate the development of renewable energy. As a result, the capacity of solar photovoltaics (PVs) has increased significantly and has reached 1902MW. Nevertheless, the installation of PVs on rooftops in the residential sector accounts for only a minute percentage (0.003%) of the total capacity of installed PVs. In this paper, a feasibility analysis of grid-connected solar PV rooftops for households under the present feed-in tariff framework was performed. The results demonstrate that the current feed-in tariff is not sufficient to promote investment in PV rooftops in the residential sector under the current market situation. Moreover, in order to support the current framework, additional supportive measures including (1) an appropriate feed-in-tariff rate, (2) personal income tax exemptions, (3) carbon trading, and (4) low interest rate loans, were proposed, and their effects were evaluated. The low interest rate loan appears to be the best measure for promoting and stimulating investment in residential-scale PV rooftops without additional subsidy. The leverage effect of debt, with different debt portions, loan terms and interest rates, was investigated to suggest a suitable policy.

Keywords: AEDPAlternative Energy Development Plan Alternative Energy Development Plan; EGATElectricity Generating Authority of Thailand Electricity Generating Authority of Thailand; FiTFeed in tariff Feed in tariff; Ft The Fuel Adjustment Charge at the given time; GHGGreenhouse gas greenhouse gas; IRRE Internal rate of return on equity; MEAMetropolitan Electricity Authority Metropolitan Electricity Authority; NESDNational Economic and Social Development Plan National Economic and Social Development Plan; NPVNet present value Net present value; PDPPower Development Plan Power Development Plan; PEAProvincial Electricity Authority Provincial Electricity Authority; PVPhotovoltaic Photovoltaic; REDPRenewable Energy Development Plan Renewable Energy Development Plan; RPVRResidential photovoltaic rooftop system Residential photovoltaic rooftop system; SPPSmall power producer Small power producer; T-VERThailand voluntary emission reduction program Thailand voluntary emission reduction program; VSPPVery small power producer Very small power producer; Grid connected rooftop photovoltaics; Feed-in tariff; Financial measures; Residential sector (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421517304159
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:109:y:2017:i:c:p:260-269

DOI: 10.1016/j.enpol.2017.06.061

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().