Thailand approves new tax incentives to boost energy efficiency

Published On - 18 December, 2025

Valentin Moriceau Thailand

Thailand has taken a significant step toward expanding clean-energy adoption with a new package of tax incentives approved by the Cabinet in 2025. The measures – covering household solar rooftop systems and energy-efficient machinery -are designed to lower upfront investment costs, reduce electricity consumption, and support the country’s long-term sustainability goals. The tax scheme will become effective upon its publication in the Royal Gazette and will remain in force through December 2028.

  1. Personal Income Tax Deduction for Solar Rooftops

Homeowners installing on-grid solar rooftop systems can now claim a tax deduction of up to THB 200,000, including equipment and installation costs.

Key conditions:

  • Taxpayer must be a residential “Type 1” electricity user.
  • Electricity meter name must match the taxpayer.
  • Solar system must be on-grid (i.e. connected to MEA or PEA grid), with capacity up to 10 kWp.
  • Only one installation per household is eligible.
  • A full VAT e-Tax Invoice is required.
  1. 150% Tax Deduction for High-Efficiency Machinery

Companies and individuals earning income under Section 40 (5) – (8) of the Revenue Code upgrading to certified high-efficiency machinery or building materials can deduct 150% of the actual cost from their taxable income.

Eligibility notes:

  • Equipment must be new, used in Thailand, and certified (e.g., 5-star energy label).
  • Must be installed and operational by 31 December 2028.
  • A full VAT e-Tax Invoice is required.
  • Cannot be combined with overlapping incentive schemes for the same asset (e.g. the THB 200,000 personal income tax deduction).
  1. Practical Points to Keep in Mind
  • Incentives shall only become effective upon publication in the Royal Thai Government Gazette.
  • Proper documentation—especially VAT e-Tax Invoices and certification proof—is essential.
  • Solar systems above 10 kWp, off-grid systems, or non-certified equipment do not qualify.
  • Taxpayers should also monitor potential updates from the Ministry of Energy and/or the Revenue Department as implementation guidelines evolve.

The Thai government regularly introduces new tax-incentive schemes to encourage investment, tourism, energy efficiency, and overall economic development. Please feel free to contact us (contact@orbis-alliance.com) if you would like additional guidance or updates on these measures.