Royal Gazette publishes up to 200,000 baht tax relief for home solar

Royal decree published under Revenue Code

The Royal Gazette website has published a royal decree granting income tax relief of up to 200,000 baht for the installation of home solar power systems. The decree states that His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua has graciously commanded that it be promulgated.

The decree was issued on the grounds that it is appropriate to exempt income tax for individuals and companies or juristic partnerships in certain cases, under Section 175 of the Constitution of the Kingdom of Thailand and Section 3(1) of the Revenue Code, as amended by the Revenue Code Amendment Act (No. 20) B.E. 2496 (1953).

Decree title and effective date

The measure is formally titled the “Royal Decree Issued under the Revenue Code on Tax Exemption (No. 805) B.E. 2569 (2026)” and takes effect from the day following its publication in the Royal Gazette.

Up to 200,000 baht relief for rooftop solar systems

Under Section 3, an income tax exemption is granted to individuals (excluding ordinary partnerships, groups of persons that are not juristic persons, or undivided estates) for assessable income equal to actual payments made for equipment purchase and installation of a solar electricity generation system installed on a roof, rooftop terrace, or any part of a building that may be occupied or used.

The system must be connected to the electricity grid of the Metropolitan Electricity Authority (MEA) or the Provincial Electricity Authority (PEA). The exemption is capped at a combined maximum of 200,000 baht.

One system only, claim once, and must complete grid connection

Eligibility applies only to the purchase and installation costs of one solar electricity generation system, paid from the date the decree takes effect until December 31, 2028.

The exemption may be claimed once, in the tax year in which the grid connection is successfully completed. The same costs must not be used to claim an income tax exemption under Section 4, whether in whole or in part.

Separate incentive for energy-efficient machinery and equipment

Section 4 provides an income tax exemption for:

• individuals with assessable income under Section 40 (5), (6), (7) and (8) of the Revenue Code, and
• companies or juristic partnerships,

covering assessable income equal to 50% of income corresponding to expenses paid for investment in high-efficiency machinery or equipment, or energy conservation materials or equipment that result in energy savings.

To qualify, the items must have a Level 5-star energy efficiency label certified by the Department of Alternative Energy Development and Efficiency (DEDE) and the Electricity Generating Authority of Thailand (EGAT). The eligible expense period runs from the effective date of the decree until December 31, 2028.

Conditions: VAT-registered sellers, e-tax invoices, no double-claiming

Section 5 sets key conditions, including:

• payment must be made to a VAT-registered operator, with an electronic tax invoice issued under the relevant Revenue Code provisions;
• expenses used under this decree must not be used again under other tax-exemption decrees or ministerial regulations, whether in whole or in part;
• expenses must not be used in activities receiving corporate income tax exemptions under laws on investment promotion, targeted-industry competitiveness, or the Eastern Economic Corridor (EEC); and
• further requirements may be set by announcement of the Director-General.

Section 6 states the Minister of Finance is responsible for enforcement.

Summary of main conditions for the 200,000-baht home solar tax relief

Claim period: March 3, 2026 to December 31, 2028
Maximum relief: up to 200,000 baht for a residential home

Conditions:

• must be a new installation and an on-grid system (a battery may be added);
• installed capacity must be no more than 10 kWp per household;
• the claimant must be the same person named on the e-tax invoice and the electricity meter owner;
• the system must be purchased, installed, and approved for grid connection from March 3 onwards;
• no retroactive claims for installations completed before this date.