An older demographic and greater use of electric vehicles (EV) are the driving forces behind the solar power business in Thailand, says New Energy Plus Solutions Co (NEPS), which expects 66% growth in its earnings this year from sales of rooftop solar panels and installation.
The country became an "aged" society in 2022, meaning the number of people aged 60 and above comprises more than 20% of the country's population of 71 million, according to the Thai Health Promotion Foundation.
The accumulated number of registered battery EVs was 105,631 units as of Feb 29, said the Department of Land Transport.
These two factors lead to more electricity consumption at homes because people need to charge batteries, which require a lot of power, and many elderly people enjoy house-based lifestyles, including watching TV, said Treerat Sirichantaropas, chief executive of NEPS.
More power demand comes as electricity bills are expensive, so people look for alternative energy like solar power to depend less on electricity from the state grid.
Previously the installation of rooftop solar panels was mainly seen at factories and commercial buildings, but now homeowners are following suit, increasing the proportion of NEPS's revenue in the household sector to 10-15%, up from 5% of total earnings in 2022, he said.
The company, the distributor of solar panels made by Shanghai-based Jinko Solar Holding, expects its total revenue to stand at 500 million baht in 2024, up from 300 million baht last year.
Mr Treerat attributed the increase to more demand for rooftop solar panels, following a surge in power bills in 2022 as a result of expensive fuel prices after the Russian invasion of Ukraine and the impact of the Covid-19 pandemic which forced people to work from home during the lockdown periods.
In the hot season, people not only consider buying more air conditioners but also think of ways to better manage monthly electricity bills. Using solar power is one solution, he said.
The popularity of solar power promises a good business prospect for NEPS, but it would also lead to fierce competition among rooftop solar panel sellers.
"But we will never enter a price war. If we compete with rivals by offering lower prices, we may need to compromise the quality of materials to control our costs," said Mr Treerat.
NEPS will compete with other companies by offering a solar power system that is designed to generate appropriate levels of electricity. Too much power generation capacity means higher costs for buyers and a longer time for a return on investment, he said.