Key Takeaways
- Rooftop solar subsidy: THB 50,000 per eligible person for up to one million homes installing systems of 5 to 10 kW. Installers will need to be on the utilities' approved vendor list. Registration details have yet to be announced.
- Smart meters: Two projects with a combined budget of approximately THB 21.6 billion, covering some three million meters, have been approved for the period October 2026 to September 2027. No tender notice has yet been issued.
- Floodway: Acceptance of a USD 3.51 million World Bank grant to prepare a THB 165 billion floodway was approved, for signature by 31 October 2026. No land expropriation decree has been issued.
- Disaster insurance: The budget is increased to THB 16.55 billion because the residential premium must include VAT.
- Not yet law: The income tax and import duty exemptions proposed for the solar programme have yet to be drafted.
1. Rooftop Solar Subsidy of THB 50,000 per Home; Vendor Conditions Set
Relevant to: solar installers, suppliers of panels and inverters, and homeowners.
Status: approved by the Council of Ministers; operating rules to be announced by the electricity utilities; related tax and customs exemptions not yet drafted.
The Council of Ministers approved the Ministry of Interior's THB 50 billion "Solar for the People" programme. Each eligible person will receive THB 50,000 towards a rooftop system of 5 to 10 kilowatts per electricity meter, comprising at least panels and an inverter. Applicants must be Thai individuals on the residential tariff, the meter must be registered in their own name, and each person may claim once. Holders of state welfare cards must forgo welfare electricity assistance on all their meters for 20 years. Registration is to be made online or at offices of the Metropolitan Electricity Authority (MEA), which serves Bangkok and two neighbouring provinces, and the Provincial Electricity Authority (PEA), which serves the rest of the country. The loan screening committee requested a registration period of 27 October 2026 to 31 January 2027; the Cabinet summary does not confirm that registration has opened.
Only MEA, PEA or a vendor on their Approved Vendor List may carry out installations. Vendors will be assessed on their management and engineering team, financial standing, experience over the past four years and reliability, with a pass mark of 70 percent. They must use the utilities' standard contract, provide a bank guarantee of THB 50,000 per installation for six months, which is forfeited if the work is not delivered within that period, and give a seven-year installation warranty, seven-year fire insurance and annual panel cleaning for seven years. The standard 5 kW package is capped at THB 140,000 inclusive of VAT. It excludes batteries, roof reinforcement and rewiring, and any additional work must be priced and approved before it begins. The subsidy is paid to the homeowner by PromptPay or, where the installation is financed, to the lending bank (GSB, GHB or BAAC). It is not paid to the installer. Tax invoices must be dated on or after the opening of registration.
A participant may not also claim, in whole or in part, the income tax exemption for solar equipment and installation under Royal Decree No. 805 B.E. 2569. Surplus electricity may be sold to the utility at THB 2.20 per kilowatt-hour. The Council of Ministers directed the Revenue Department to prepare an income tax exemption for the subsidy itself, and the Customs Department to prepare, where necessary, an import duty exemption for raw materials used to manufacture solar equipment in Thailand. Neither instrument yet exists.
Recommended action (now, before vendor registration opens): assemble documentation on the team, financial standing and four-year track record, confirm bank guarantee capacity, and apply when MEA or PEA announces vendor registration.
2. Smart Meter Projects Approved for MEA and PEA
Relevant to: suppliers of meters, communication modules, metering software and installation services.
Status: projects and budgets approved; procurement by MEA and PEA to follow; no tender notice yet.
MEA will acquire 1.31 million smart meters with communication modules (THB 6,200 million) and a supporting system (THB 4,585 million), a total of THB 10,785 million. PEA will acquire 1.7 million smart meters (THB 7,241.60 million) and supporting infrastructure (THB 3,570 million) in 15 high-demand areas, a total of THB 10,811.60 million. PEA's request for transformer meters and battery storage, valued at THB 4,279.50 million, was deferred for consideration alongside a separate grid battery project. The meters record electricity flowing in both directions and are intended for homes with solar panels or electric vehicle chargers. The project period runs from October 2026 to September 2027, with disbursement to be completed by 31 December 2027.
Both utilities were directed to promote locally produced goods and services and to establish a mechanism for obtaining users' consent before other agencies may use smart meter data, having regard to personal data protection and data security.
Recommended action (now): prepare evidence of Thai-made content and data protection readiness, and monitor MEA and PEA procurement announcements.
3. World Bank Grant Approved for the Chainat-Pasak-Gulf of Thailand Floodway
Relevant to: engineering consultants, contractors, and landowners in the nine affected provinces.
Status: acceptance of the grant approved; agreement to be signed by 31 October 2026; no land expropriation decree issued.
The Council of Ministers approved the Ministry of Finance's acceptance of a USD 3.51 million World Bank grant for preparation of the floodway, together with the grant agreement, the procurement plan and arbitration as the means of resolving disputes between Thailand and the World Bank. The Ministry of Finance, the Ministry of Foreign Affairs and the Office of the Council of State considered the agreement a treaty that does not require parliamentary approval, since it can be performed under existing law. The Royal Irrigation Department will lead the preparatory work and must complete procurement and disbursement within 18 months of signature.
The floodway is a THB 165 billion project scheduled for 2027 to 2034 across Chai Nat, Nakhon Sawan, Lop Buri, Saraburi, Phra Nakhon Si Ayutthaya, Pathum Thani, Nakhon Nayok, Chachoengsao and Samut Prakan. In approving it in principle on 29 September 2026, the Council of Ministers asked that local content be made a key condition in negotiating foreign loans, and the Ministry of Finance urged that a royal decree defining the land to be expropriated be issued before work begins.
Recommended action (after signature on 31 October 2026): consultants should monitor procurement notices issued under the World Bank procurement plan; landowners need take no step until a royal decree defines the land concerned.
4. Disaster Insurance Budget Increased to THB 16.55 Billion
Relevant to: insurers and brokers participating in the government disaster insurance scheme.
Status: budget increase approved; residential premium not yet paid.
The Council of Ministers increased the budget for the government-purchased group disaster insurance policies from THB 15.5 billion to THB 16.55 billion. The Office of Insurance Commission advised that the residential premium must include VAT, which the earlier figure of THB 15 billion did not; the residential policy now stands at THB 16.05 billion. The accident policy remains at THB 500 million, which has been paid, and now includes a THB 200,000 benefit for permanent total disability. The scheme covers approximately 30 million homes against flood, windstorm and earthquake.
Recommended action (upon release of the additional THB 1.05 billion from the central emergency reserve):participating insurers should reconcile premium invoices to the VAT-inclusive amount.
5. Selection Committee Appointed for the Energy Regulatory Commission
Relevant to: power producers and energy investors.
Status: selection committee appointed with effect from 27 October 2026; no new commissioners yet.
The Council of Ministers appointed an eight-member committee to select members of the Energy Regulatory Commission. Its members include a former Permanent Secretary of the Ministry of Energy, two former Permanent Secretaries of the Ministry of Finance, a former Secretary-General of the national economic and social development agency, and representatives of industry, the engineering profession, public universities and a non-profit organisation. The Cabinet summary also records that the National Energy Policy Council approved in September a policy to expand household solar sales to the grid to 10,000 megawatts, with purchase contracts of 20 years in place of 10. That is a policy decision. The purchase rules have not been published.
Recommended action (no deadline): none at present. We will report when the new commissioners are named.
Other Matters
The Council of Ministers designated Thailand's ASEAN Chairmanship in 2028 a national agenda for 2027 and 2028, approved ratification of the Agreement on the Establishment of the ASEAN Centre for Climate Change, allocated THB 972.2 million to the Ministry of Labour for solar design and installation training, and confirmed an official Cabinet meeting in Udon Thani on 3 November 2026.
How Dej-Udom & Associates Can Assist
- Corporate & Commercial: review of the utilities' standard contract and bank guarantee terms, installer agreements with homeowners, supply contracts, and consent and data handling arrangements for smart meter data.
- Taxation: monitoring of the proposed income tax and customs exemptions and their interaction with Royal Decree No. 805.
For further information, please contact us at +66 (0)2 233 0055 or [email protected].
Source: Secretariat of the Cabinet summary of the meeting of 27 October 2026, as republished by the National Innovation Agency (nia.go.th/news/page/detail/15461/). The summary is provisional, and the formal Cabinet resolution should be confirmed before any reliance is placed on it.
Disclaimer: This publication is intended for general informational purposes only and does not constitute legal advice. The information contained herein should not be relied upon as a substitute for specific legal counsel. For advice tailored to your circumstances, please contact Dej-Udom & Associates directly.