On 27 October, Thailand's Cabinet approved the THB 50 billion "Solar for the People" project, offering a subsidy of THB 50,000 per household with registration open until 31 January 2027; smart meter projects of the two electricity authorities must give priority to local products. On the same day, excise tax on B20 diesel and E20 gasoline was cut for three months.
Home Solar: THB 50,000 per Household, Up to 1 Million Households
According to the Cabinet meeting summary, the "Solar for the People" project totals THB 50 billion (approx. RMB 11 billion), funded under the Emergency Decree on borrowing to address the energy crisis B.E. 2569 (2026). Under the details published on the government website on 29 October:
The subsidy is THB 50,000 per household, for up to 1 million households;
Registration runs from 27 October 2026 to 31 January 2027, through the Provincial Electricity Authority (PEA) and the Metropolitan Electricity Authority (MEA);
Applicants must be Thai individuals, using electricity for residential purposes and holding the electricity meter in their name; systems must be 5-10 kW and installed by contractors registered with the electricity authorities;
Grid connection applications must be submitted by 31 August 2027, with connection completed by 30 September 2027;
The subsidy cannot be combined with the personal income tax deduction for rooftop solar under Royal Decree No. 805 (up to THB 200,000).
The Cabinet also instructed the Revenue Department to draft legislation exempting the subsidy received by individuals from personal income tax, and the Customs Department to study a related import duty exemption; both must be submitted separately to the Cabinet and have not yet been enacted.
Smart Meters: Two Projects Totalling About THB 21.7 Billion
MEA: smart meters and infrastructure, THB 10.885 billion, including THB 6.2 billion for 1.31 million meters;
PEA: smart meters and energy storage, THB 10.8116 billion, including THB 7.2416 billion for 1.7 million meters.
Both projects require priority to be given to local products. The Ministry of Labour also received a budget of about THB 972 million for training in solar system design and installation skills.
Fuel Excise Tax: Cut for Three Months
According to the Excise Department's press release, the Cabinet agreed on 27 October to reduce excise tax: B20 diesel from THB 5.953 to THB 0.431 per litre and E20 gasoline from THB 6.000 to THB 0.358 per litre, for the period 28 October 2026 to 27 January 2027; the carbon price remains unchanged at THB 200 per tonne of carbon dioxide equivalent.
Key Points
The home solar subsidy is THB 50,000 per household, with registration until 31 January 2027, open only to Thai individuals.
Installation must be carried out by contractors registered with the electricity authorities, and the subsidy cannot be combined with the rooftop solar personal income tax deduction.
The personal income tax exemption for the subsidy and the import duty relief have only been assigned for drafting and have not yet been enacted.
The two smart meter projects require priority to be given to local products.
The excise tax cut on B20 and E20 runs until 27 January 2027.
Z&X Insight
Solar and power equipment businesses may watch for orders arising from the contractor registration and local product requirements, while checking in advance the business scope of their Thai company, VAT treatment and tax cost estimates for imported equipment. As the tax exemptions have not yet been enacted, they should not be factored into quotations in advance. Z&X Annual Finance & Tax Advisory Retainer has seven advisory modules, including "In-Depth Application of Thai Tax Law", and can advise on the tax impact of new policies on businesses.
Sources
สรุปข่าวการประชุมคณะรัฐมนตรี 27 ตุลาคม 2569 (Summary of the Cabinet Meeting, 27 October 2026) | Secretariat of the Prime Minister | 2026-10-27 | https://www.thaigov.go.th/th/news/170594
รัฐบาลหนุนติดตั้งโซลาร์ครัวเรือน 50,000 บาท เปิดลงทะเบียนถึง 31 ม.ค. 70 (Government Supports Household Solar Installation with THB 50,000, Registration Open Until 31 January 2027) | Royal Thai Government | 2026-10-29 | https://www.thaigov.go.th/th/news/170633
กรมสรรพสามิตบรรเทาค่าครองชีพประชาชน ปรับลดภาษีสรรพสามิตน้ำมัน B20 และ E20 (Excise Department Eases Cost of Living by Cutting Excise Tax on B20 and E20 Fuel) | Royal Thai Government | 2026-10-27 | https://www.thaigov.go.th/th/news/170569
The Cabinet meeting summary notes that the official resolutions of the Secretariat of the Cabinet prevail.
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