Thailand could significantly reduce its dependence on imported liquefied natural gas (LNG) by reforming policies that have slowed rooftop solar development, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA).
Declining domestic gas production has increased Thailand’s reliance on imported LNG, exposing the economy to volatile global prices. The government now aims to generate 60% of electricity from clean energy by 2050, double its previous target.
Rooftop solar accounted for about 3.6 GW of Thailand’s solar capacity in early 2026, but high installation costs, low electricity buyback rates, restrictive quotas and policy uncertainty have limited growth.
Rooftop systems cost around $936 per kW, nearly 50% higher than in some regional markets.
IEEFA said the current buyback rate of THB 2.20 ($0.07) per kWh is significantly below the average retail electricity tariff of about THB 3.88/kWh. The residential solar payback period is therefore around six to seven years.
The report recommends shifting from net billing to net metering, raising solar buyback rates, removing restrictive quotas, streamlining tax incentives and accelerating rooftop solar combined with battery storage.
