Solar firms resist bank guarantees and 7-year warranty in 50-billion-baht scheme
Thai solar firms warn guarantees and seven-year service costs could raise household prices, while the Finance Ministry defends consumer choice.
- Solar installers are resisting Thailand's 50-billion-baht rooftop solar program due to requirements for financial guarantees and a seven-year service warranty.
- The disputed conditions mandate installers to provide multiple bank guarantees (up to 50,000 baht per job) and a seven-year obligation that includes an installation warranty, fire insurance, and annual maintenance.
- Firms argue these requirements will increase their costs and strain working capital, which could lead to higher prices for households and reduce the benefit of the government's subsidy.
- As a result of these conditions, several solar companies have announced they will not participate in the program, or will severely limit their involvement, if the rules are not changed.
Thailand’s 50-billion-baht rooftop solar programme, launched on October 27, 2026, is facing resistance from installers over financial guarantees and seven-year service obligations. Comsys Solar and BNME Energy warn the additional costs could push up prices and reduce the benefits of household subsidies.
Finance Ministry permanent secretary Lavaron Sangsnit says households will be able to choose their own installers and benefit from competition on prices and services. His response, however, did not indicate whether the disputed guarantees, insurance requirements and after-sales obligations would be reviewed.
The government’s household solar programme targets one million homes, offering 50,000 baht towards each eligible installation. The Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) are responsible for implementing the scheme.
Solar vendors face guarantees and seven-year obligations
The household solar programme’s vendor handbook sets out bank guarantees alongside seven years of warranty, fire insurance and after-sales obligations. Some installers say the requirements could strain working capital and add insurance costs, particularly when handling several installations at once.
Under the solar vendor handbook, installers must arrange a bank guarantee of 50,000 baht for each job, valid for six months. The guarantee may be forfeited if the contractor fails to complete the work within the stipulated period.
A separate 10,000-baht bank guarantee must be submitted by participating solar installers within 15 days of receiving permission to connect the system to the grid. This guarantee covers liability for defects in installation work over seven years.
Participating solar installers must also provide a seven-year installation warranty, maintain fire insurance throughout that period, and carry out maintenance and panel cleaning at least once a year.
Finance Ministry defends competition and a 140,000-baht benchmark
Lavaron said the solar programme was unlikely to favour large contractors because enough installers were registered with the electricity authorities and households could select their own providers. The MEA and PEA would offer standard 5-kilowatt installation packages priced at no more than 140,000 baht, providing a benchmark to encourage competition on price and service quality, he said.
“One million homes taking part in the programme is enough to create competition among operators, whether through better services or better prices for households,” Lavaron said of the household solar programme. “People choose their own vendors; we cannot dictate their choice.”
Lavaron said additional vendors could join the solar programme at any time and the Labour Ministry was training more workers for the sector.
Solar firms opt out or put limits on participation
WAY SOLAR has ruled out joining the household solar programme, while Comsys Solar says it will cap its programme work at 20 homes if the final rules retain the draft’s key conditions.
WAY SOLAR cited risks to the long-term stability of its business in explaining its decision not to join the solar programme. The company said it would continue offering inspections, repairs, maintenance and system care to customers whose installations were completed through the government programme, subject to its own service conditions.
Comsys Solar said that, if the draft conditions remained, its 20-home cap on household solar programme work would include customers already promised installations, and it would stop taking further jobs once that limit was reached. The company has already installed systems at about 2,000 homes and said it must consider its ability to support customers and employees over the long term.
Comsys Solar said it already provides a 10-year warranty and after-sales service, but the household solar programme’s additional guarantee and insurance requirements would add costs. Raising prices to cover those obligations could prevent households from receiving the full benefit of the subsidy, the company warned. Comsys Solar said it would honour existing customer offers and reconsider additional work if the requirements changed.
BNME Energy Co Ltd said it would not participate in the household solar programme if the final rules retained the draft’s key conditions, citing guarantees, insurance, operating expenses and long-term responsibilities. The company warned that higher costs could feed through to household installation prices, while stressing that it supported clean energy and would reconsider joining if the criteria were revised appropriately.
Solar Hub criticised the household solar programme’s vendor handbook dated October 27, questioning the 140,000-baht reference price for a standard 5-kilowatt system, guarantee requirements and seven-year installation warranty. The company indicated that it did not wish to accept work under those conditions.
BigOneSolutions, through BigOneSolarcell, announced on October 28 that it would not participate in the household solar programme, citing concerns about transparency, fair competition and consumer choice of products, providers and system configurations. The company called for the criteria to be reviewed and clarified to build confidence and prevent potential conflicts of interest. Its statement did not claim that any actual conflict of interest had been identified.
Solar registration runs until January 31, 2027, or funds run out
Registration for Thailand’s household solar programme runs from October 27, 2026, to January 31, 2027, or until the allocated funding is exhausted. Beneficiaries must apply for grid connection by August 31, 2027, and complete connection by September 30, 2027.
Under the PEA’s published programme conditions, residential solar installations must have a capacity of at least 5 kilowatts and no more than 10 kilowatts per electricity meter. Households must use the MEA, PEA or an installer registered with either electricity authority.
The PEA prepared household and vendor registration systems for the solar programme before its launch. On October 22, deputy governor Pradit Fuangfoo said more than 1,000 operators were on its list, although the eligibility criteria and participation conditions had not yet been formally announced.
The PEA announced the October 27 registration opening on October 26. The government formally launched the solar programme and released participation criteria and manuals on October 27, the same day the Cabinet approved the 50-billion-baht allocation.
The number of solar installers that registered for the household solar programme and subsequently withdrew formally remains unconfirmed.
