Thailand’s solar rooftop developments

Thailand's solar rooftop developments

Thailand's solar rooftop developments

From self-consumption through rent-a-rooftop schemes to grid-connected solar rooftop developments and blockchain-based peer-to-peer energy trading

Self-consumption: Solar panels installed on the own rooftop for self-consumption “behind-the-meter” are widely popular in Bangkok as well as the various production plants in the Eastern Seaboard. The owners of factories, buildings, and residences have installed self-financed solar rooftops to produce their own electric power and cut back on expenses. Reductions in technology prices and innovative financing structures help to make government subsidy programs unneeded and obsolete and made photovoltaics competitive with fossil fuels energy sources.

Third-party ownership: The existing legal environment allows solar service providers to agree with commercial and industrial rooftop owners to sell and construct solar rooftop panels and enter into a long-term service contract to keep the panels operational. Depending on the agreements, the facility owner can finance the solar investment by the savings in electricity costs only.

Private PPA: Alternatively, a solar developer can rent the rooftop to install its own solar panels to build, own and operates the system (BOO) and produce electricity in a third-party ownership model. The electricity is sold to the rooftop owner under a private power purchase agreement. The license requirements (inclusive Regulated Energy Production License) for such a venture as well as BOI investment promotion options have to be taken into consideration.

Grid-connection: Previous governmental announcements predicted to allowed to sell electricity, generated by privately owned solar rooftops, to state utilities. Solar rooftop development installations on commercial, industrial, governments, public institutions (e.g., schools and hospitals), residential, and any other type of buildings are going mainstream with the introduction of non-utility offtake deals and the opening of the energy market to sell rooftop electricity on demand into the grid.

Peer-to-peer energy trade: Thailand plans to open its energy market to allow private electricity trading. The traditional power distribution is transformed from large power plants into a decentralized blockchain system utilizing the national electricity grid as the submission line. Details are described at “Prosumer, blockchain and the Thai power grid”.

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Seven contracts for the solar rooftop development

#1. Sale or lease: To install the solar panels and inverters on the rooftop, a sale or a lease agreement has to be agreed.

#2. Construction agreement: The solar developer needs access to the rooftop to install the panels and accomplish the commissioning procedures.

#3. Service contract: Under a service contract the solar facilities had to be maintained in an operational status.

#4. C&I PPA: If the solar developer is the power producer, the electricity is sold to the rooftop owner under a power purchase agreement with a duration between 15 and 25 years. The PPA might include a guaranteed yield performance and a transfer of ownership at the end of the contract.

#5. EPC contract: The solar developer typically outsources to an EPC contractor the tasks engineering, procurement, and construction. A split of the turnkey contract into service and delivery contract might be required for a tax#efficient structure. For the technical design, standardized ERC Mini Code of Practice (Mini-CoP) could be agreed.

#6. O&M contract: Also, the solar developer typically outsources to an O&M contractor the tasks to operate and maintain the installment. EPC contractors typically offer O&M services.

#7. Governmental implications: The long-term solar energy project has to take into consideration the future liberalization of Thailand’s energy industry and the possibility to sell energy to the grid. Electricity production license requirements and a possible total capacity limit might have an impact as well. Also, the opening of the energy market by allowing blockchain-based peer-to-peer trade of solar rooftop electricity has to be taken into consideration.

Players list for industry stakeholders

Are you a commercial or industrial rooftop owner and interested in getting into contact with the solar industry to discuss the utilization of your asset? Register for the Players List curated by PUGNATORIUS Ltd. to enable a business matchmaking with other stakeholders in Thailand’s solar rooftop industry or foreign investors interested in the Thai solar market. Please do not contact us for townhouse rooftop projects.

Your handpicked project is put in front of the right business partner for the highest caliber opportunities. Real projects, real investors creating real transactions. The law firm will contact you only for a specific business opportunity. No marketing messages, no service offers, no newsletter, no spam.

Professional service offer on solar energy projects

Solar energy and other forms of renewable energy are one of the law firm’s areas of competence, long-standing experience, and unique market reputation. The scope of services cover these seven main activities:

  • Scouting of market opportunities
  • Corporate structures
  • BOI investment promotion
  • Acquisition support
  • Commercial contracts
  • Deal arrangements
  • Legal opinions

Details are described at “Legal advice, tax structuring, transaction support services and business matchmaking on Thailand’s renewable energy markets.”

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Disclaimer: A little knowledge is a dangerous thing. This low-resolution high-level outlook constitutes neither legal advice nor an attorney-client relationship.

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