BANGKOK — Thailand is preparing a major financial programme to encourage households to install rooftop solar systems as the government seeks to expand renewable energy and reduce pressure on the country’s electricity system.

Finance Minister Ekniti Nitithanprapas said the government plans to provide 50 billion baht, equivalent to roughly US$1.5 billion, to support consumers installing rooftop solar panels. The programme is expected to begin in mid-October.

The initiative will also include tax exemptions for certain imported solar-panel components, with the government aiming to make rooftop systems more affordable for consumers.

Thailand’s renewable-energy push comes as electricity demand continues to increase. Rising temperatures can further increase consumption because households and businesses use more air conditioning and cooling equipment.

By encouraging households to generate electricity themselves, the government hopes to reduce reliance on conventional power generation and strengthen energy security.

Rooftop solar could also provide consumers with greater control over their electricity consumption and potentially reduce electricity costs over the longer term.

The programme forms part of Thailand’s wider efforts to expand clean-energy generation and encourage investment in renewable technologies.

Government policy has increasingly focused on balancing economic growth with environmental sustainability. Renewable energy is expected to play a larger role as Thailand works toward reducing its dependence on fossil fuels.

The planned support could also stimulate demand for solar equipment, installation services and related technologies, creating additional business opportunities within the country’s clean-energy sector.

Thailand’s government is simultaneously working on broader economic policies designed to improve competitiveness and encourage investment.

The renewable-energy initiative is therefore expected to have both environmental and economic effects, particularly if large numbers of households adopt rooftop solar.

The programme will begin later this year, with the government expected to provide further details on eligibility, application procedures and the structure of the financial support.

Thailand’s latest move signals a stronger push toward decentralised renewable electricity and could accelerate the growth of rooftop solar across the country.