Household 'net energy metering' plan put on hold
A study commissioned by government to examine the implementation of a solar power project for households known as net energy metering has concluded that Thailand is not yet ready for such a scheme.
Instead, the government will continue to allow consumers to sell the excess electricity to the utility at a rate of 2.20 baht.
Net Energy Metering (NEM) is a billing mechanism that credits households that have installed rooftop solar panels for the electricity they supply to the electricity grid. For example, if a residential consumer has a rooftop solar panel system, it may generate more electricity than the home uses during daylight hours. The NEM scheme serves to promote renewable energy use and conservation of non-renewable energy at the consumer level.
The Energy Ministry reported that the study identified several challenges that prevent households from exporting excess electricity to offset their electricity bills. These challenges include regulatory and legal issues, technical considerations, and overall impacts on the quality and stability of the electricity grid.
With regard to the regulatory and legal aspects, the offsetting of households’ excess electricity with electricity suppliers is currently not supported by regulations and laws. Calculating the value-added tax for such transactions requires a tax base exemption from the Revenue Department.
In terms of technical aspects, the fluctuating and uncertain nature of solar-generated electricity can lead to imbalances in the electricity grid, causing damage to electrical devices and reducing overall efficiency and lifespan.
If a significant amount of solar-generated electricity flows back into the grid, the protective equipment in the electrical system may need to be resized and adjusted to accommodate the increased electricity production. Control and management systems must also be implemented to ensure the quality and reliability of the electricity system as a whole.
Additionally, there will be an increased burden on electricity producers from solar energy installations, requiring the replacement of traditional meters with digital meters to monitor the quality and amount of electricity flowing back into the grid.
Regarding the overall impacts on the country and the general public, it was found that the cost of electricity units sold by the utility fluctuates with the fuel costs at different times, resulting in an increased financial burden on electricity consumers, particularly those with low incomes or households that cannot install Solar Rooftop systems.
This is because the additional cost from purchasing solar-generated electricity will be distributed back to the electricity tariff, leading to increased prices, and may affect the stability of the electricity system.
In the meantime, the government will continue to promote the production of electricity from solar rooftop installations using the existing scheme. If there is an increase in solar rooftop installations for self-consumption within households, the tariff structure will be adjusted to reflect hidden costs, such as value-added tax. The government will also study the feasibility of further promoting and supporting additional photovoltaic installations.
