SPR revenue to soar as solar rooftops heat up

SPR revenue to soar as solar rooftops heat up

SPCG subsidiary aims to book B4bn in 2018

A solar rooftop on a mall in Nakhon Ratchasima. Similar systems are growing in popularity with consumers.
A solar rooftop on a mall in Nakhon Ratchasima. Similar systems are growing in popularity with consumers.

SET-listed SPCG Plc, Thailand's largest solar power operator, expects four-fold revenue growth from subsidiary Solar Power Roof Co (SPR) to 4 billion baht next year as consumers warm to solar rooftops.

SPCG chairwoman and chief executive Wandee Khunchornyakong said factories and other businesses have been active in installing solar panels and solar rooftop systems as they seek to lower power bills and greenhouse gas emissions.

SPR, which operates fully integrated services for solar rooftops, has a backlog of projects worth almost 4 billion baht.

Revenue from the backlog is to be booked next year, putting it well above the 1 billion baht expected for the whole year of this year, Ms Wandee said.

She said SPR's incentives granted by the Board of Investment will expire at the end of 2017, meaning the company will rev up investment to tap rising demand for solar rooftops among Thai consumers.

Solar panel costs have fallen sharply in the past few years, and demand is likely to jump if energy policymakers finalise regulations allowing residents to have their own solar rooftops and sell power back to state utilities.

Meanwhile, the commercial operation date of SPCG's solar farm project in Japan, with a capacity of 30 megawatts, will be delayed from early next year to the second quarter, Ms Wandee said.

The US$140-million solar farm in Tottori prefecture is SPCG's first overseas project after developing 34 solar farms in Thailand with power-generating capacity of 260MW.

SPCG expects total revenue to rise by 10% to 6 billion baht this year. The company is also partnering with four Japanese firms to develop one of Asia's largest solar farms in Japan.

Project details will be officially announced in the first quarter of 2018, Ms Wandee said.

SPCG is preparing for the project by increasing registered capital to 1.01 billion baht, up from 923 million baht, through the issue of 92 million units of debenture.

Ms Wandee said there is room for solar power to grow in Japan as policymakers seek renewable power to replace nuclear after the 2011 Fukushima Daiichi disaster.

The joint venture in Japan will be a valued asset as SPCG looks to double capacity to 500MW by 2019.

SPCG shares closed yesterday on the Stock Exchange of Thailand at 23 baht, down 60 satang, in trade worth 123.9 million baht.

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