The IEEE Power and Energy Society (Thailand) is asking the government to allow more households and businesses to join its new tax reduction scheme for people installing rooftop solar panels in order to stimulate the use of clean energy.
The scheme, aimed at granting tax privileges to 90,000 households between 2024 and 2027, is scheduled to receive the final say within the second half.
Any household that purchases solar panels with a power generation capacity of less than 10 kilowatts at a cost of less than 200,000 baht can participate, according to the Department of Alternative Energy Development and Efficiency.
Authorities should consider increasing the number of participants because demand for solar power is currently high, said Nipon Ketjoy, a member of the IEEE Power and Energy Society and director of Naresuan University's School of Renewable Energy and Smart Grid Technology.
Under the 2024 national power development plan, which is set to be approved by the government next month, Thailand has set a goal to have renewable power make up 51%, or 73.2 gigawatts, of total power supply by 2037, up from 20% last year.
Small and medium-sized enterprises (SMEs) should be allowed to participate in the tax reduction scheme to help provide them with relief in terms of electricity expenses during the economic slowdown, said Mr Nipon.
"Power bills are part of their operating costs. The government should not ignore their participation to benefit from the tax reduction," he said.
The Finance Ministry may be reluctant to help SMEs because some of them can afford to pay for solar power technology, but other SMEs need financial help, said Mr Nipon.
If the latter is given the aid, they could better deal with energy costs, which could lead to business growth and higher tax collection for finance officials, he said.
Prime Minister Paetongtarn Shinawatra and her cabinet must decide whether to adjust the tax reduction scheme to cover SMEs, said an official from the Department of Alternative Energy Development and Efficiency.
The scheme, which requires a budget of 20.2 billion baht, would be able to reduce electricity consumption by 585 million kilowatt-hours per year, according to the department.
New Energy Plus Solutions Co, a local distributor of solar panels, said earlier it agrees with the tax reduction scheme as a tool to help reduce carbon dioxide emissions.