Thailand’s new tax break for rooftop solar installations offers a rare triple win: lower taxes, smaller electricity bills, and the chance to be part of the country’s push toward a more sustainable future.
If you’re living in Thailand for most of the year, you’re likely considered a Thai tax resident—and that means you’re probably looking for ways to make the most of the available deductions. This new incentive, recently approved by the Thai Cabinet, is a practical opportunity to do just that.
Note: Although these incentives have been announced and approved by the Cabinet, detailed Royal Decrees confirming the specifics have not yet been released. It’s essential to verify all details once official documentation becomes available. Sign up for our tax alerts to get the latest news direct to your inbox.
What’s on Offer?
The Thai government has approved a generous tax deduction for individuals who install rooftop solar systems on their homes. You can deduct up to THB 200,000 (including VAT) from your gross income, effectively lowering the amount of income that’s taxed.
Here’s what you need to know:
- Who qualifies: Any individual (not a company) who installs a system on their residential property. You must be the same person named on the electricity meter.
- What qualifies: Grid-connected solar systems up to 10 kWp, installed by certified providers, with full documentation and approvals.
- When: Applies to expenses from 24 June 2025 through 31 December 2027. You’ll claim the deduction in the tax year the system is installed.
This isn’t just about reducing your tax bill. A solar system also means smaller energy bills and the potential to sell excess power back to the grid.
Can You Claim It?
Yes—if you’re a tax resident and you file an annual return, you can make use of this deduction. It doesn’t matter what nationality you are, but you do need to own or lease a property where solar can be installed.
If you own a condo, you’ll need to check if rooftop installation is possible and approved. If you lease a home, you may be eligible to claim the deduction if the landlord agrees and the necessary paperwork is completed correctly. Getting the installation registered and grid-connected can involve hurdles, so professional help is often a good idea.
You can also stack this tax break with others, like the THB 100,000 mortgage interest deduction or ESG investment allowances of up to THB 300,000.
How Much Can You Save?
Let’s say you spend THB 150,000 installing a 5 kWp rooftop solar system. If you’re in the 20% tax bracket, that means a potential tax saving of THB 30,000. Spend the full THB 200,000 and you could save up to THB 40,000, depending on your income.
And that’s just the tax saving. Add in lower monthly electricity bills and potential income from selling excess power, and the financial benefits are even more compelling.
A Real Example
You’re retired and living in Chiang Mai. You install a THB 150,000 solar system on your home. You claim the full amount as a deduction on your 2025 return, saving THB 30,000 in tax. Over time, you cut your electricity bill in half and may even earn a small return from feeding energy back to the grid.
It’s a smart investment—and a simple way to align your finances with your values.
What to Watch
Like any tax incentive, there are a few things to be careful about:
- Getting approval: The system must be grid-connected and properly registered.
- Documents matter: You’ll need complete, accurate invoices and installation approvals.
- Property rules: Foreigners can’t own land, but you can own condos or lease homes. You may need to obtain landlord cooperation and find a workaround for grid registration.
- Audit risk: If you remit foreign funds to pay for the system, make sure they’re declared correctly.
If you are interested in this tax incentive, we can help ensure everything is filed correctly.
Final Thoughts
Thailand’s renewable energy tax incentives present a compelling opportunity for Airbnb operators to:
- Reduce tax on rental income
- Cut monthly operating costs
- Attract more guests with sustainable listings
With incentives running through 2027 (or 2028 for businesses), now is the time to start planning. Speak with a tax advisor to ensure you meet the criteria, gather the right documentation, and maximise the return on your investment.
By going solar, you’re not just saving money, you’re making your property more competitive in an evolving market and contributing to Thailand’s transition toward a greener future.
To keep up with the latest news on Thai tax and how it affects you, sign up for our tax alerts, and if you have any questions on this or other tax matters, book a free call to speak with our team.
