New Energy looks to tax perk
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New Energy looks to tax perk

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These rooftop solar panels designed by LONGi are to be marketed in Thailand.
These rooftop solar panels designed by LONGi are to be marketed in Thailand.

The cabinet's recent resolution to grant a tax reduction of up to 200,000 baht to each purchaser of rooftop solar panels is expected to boost the solar energy market, benefiting the state's plan to save energy and boosting revenue for suppliers.

Among the sellers is New Energy Plus Solutions, which sells solar panels made in China, including those produced by Xian-based LONGi Green Energy Technology.

The tax incentive was implemented while New Energy Plus Solutions announced it had teamed up with Huawei, the Chinese telecom equipment manufacturer. Under the partnership, New Energy Plus Solutions and Huawei have jointly launched a sales promotion campaign for premium rooftop solar panels.

New Energy Plus Solutions has just opened its first showroom in Bangkok. The company hopes to benefit from the government's solar energy policy which will help people to be able to afford to pay for cleaner energy.

"The policy allows Thais to access solar panel technology more easily, which will become part of their sustainable lifestyles in the long term," said Treerat Sirichantaropas, chief executive of New Energy Plus Solutions.

The tax reduction for households installing rooftop solar panels was proposed by Energy Minister Pirapan Salirathavibhaga, who is offering people an alternative way to deal with expensive power bills.

Energy officials are working on plans to ease the financial burden on people as electricity prices are tending to increase.

"This tax incentive is aimed to help change the lifestyles of householders as it will encourage them to use energy more sustainably," said Mr Pirapan, referring to the use of solar power in place of fossil fuel-derived energy.

"People can reduce their electricity bills and help the country import less liquefied natural gas [LNG]."

Thailand increasingly depends on LNG imports despite facing price fluctuations due to a decline in domestic gas supply.

Up to 90,000 houses are expected to join the tax reduction policy between 2025 and 2026, according to Department of Alternative Energy Development and Efficiency.

This scheme, which requires a budget of 20.2 billion baht, could help the country save electricity consumption of up to 585 million kilowatt-hours a year.

Such a decrease in power demand could reduce LNG imports by 9,000 tonnes a year, worth 2.1 billion baht, as well as cut greenhouse gas emissions by 0.28 million tonnes.

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