Income Tax Exemptions for Solar Power Systems and Energy-Efficient investments


Thailand: Income Tax Exemptions for Solar Power Systems and Energy-Efficient investments
The Thai government has issued Royal Decree No. 805 B.E. 2569 (2026), introducing new personal and corporate income tax exemptions to promote renewable energy and energy‑efficient technologies. The incentives cover investments in solar power systems and high‑efficiency machinery or equipment, with specific conditions and qualification requirements.
Tax Exemption for Solar Power Systems
As per the prescribed conditions for the personal income tax (PIT) exemption, the taxpayer shall incur expenses for the purchase of equipment and installation costs of one solar power system installed on a roof, rooftop, or any part of a building that a person may occupy or use.
  • The solar power system must be connected to the electricity grid of the Metropolitan Electricity Authority (MEA) or the Provincial Electricity Authority (PEA).
  • The exemption applies to actual expenses paid, capped at Baht 200,000.
  • The PIT exemption shall be exercised only once in the taxable year in which the connection to the electricity grid is successfully completed.
Tax Incentives for Energy-Efficient machinery and equipment
The Royal Decree also provides tax benefits for:
  • Individuals earning assessable income under Section 40(5)–(8) of the Revenue Code, and
  • Companies or juristic partnerships investing in energy‑efficient machinery or equipment.
Taxpayers are eligible for a 50% income tax exemption on the amount paid for investments in high-efficiency machinery or equipment for energy conservation that results in energy savings.
To qualify the machinery or equipment must be certified with a 5-star energy efficiency label by Department of Alternative Energy Development and Efficiency (DEDE), and Electricity Generating Authority of Thailand (EGAT).

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