General Peer reveals that the Electricity Generating Authority of Thailand has initiated an investigation into the practice of pressuring solar rooftop contractors to lower prices, refuting claims of kickbacks, and noting that 70,000 registrations have been received against a target of 1 million.

“Polpear” refutes allegations regarding the solar power program for the general public, insisting that the initiative does not favor large enterprises. He emphasized that a 50,000-baht guarantee is in place to protect the public. Addressing concerns over the 110,000-baht installation cost, he stated that an investigation committee has already been established. He revealed that the number of registrations has surpassed 70,000, with nearly 40% of participants not requiring bank loans.

On November 2, Parn Suwannachai, Deputy Minister of Interior, told Matichon that the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA) have been designated as the primary agencies to handle registration, coordination, and public services for the Solar for the People project, addressing private sector concerns. He explained that both electricity authorities function as a One Stop Service to facilitate public access and verify that vendors meet the required qualifications and standards, ensuring that the public can trust and safely use solar rooftop installation services. Regarding performance guarantees, the Ministry of Finance has already analyzed the relevant conditions. Since households are entitled to a government subsidy of 50,000 baht, vendors are required to post a 50,000 baht guarantee to protect the public’s rights.

“If a vendor accepts a job from a citizen but fails to complete it, the citizen’s rights would be compromised. Therefore, the deposit the vendor has placed with the electricity authority can be seized to ensure the service is delivered, with another vendor taking over the work,” Parn said.

Mr. Poonphair stated that regarding the allegation that the project's participation conditions may favor large operators and exclude small ones, he confirmed that this is not the case. However, some operators may seek to take on more work than their company's capacity allows. He clarified that small operators can gradually take on work according to their capabilities, without the need to accept thousands or tens of thousands of rooftops at once. "If you have the capacity to do five rooftops, just do five. After completing those five, you can proceed to the sixth through the tenth. And once those are done, you can then work on the eleventh through the fifteenth."

Furthermore, operators can provide security deposits based on the volume of work they are responsible for, without the need to set a target for a large volume of work from the outset. Currently, the cost of issuing a bank guarantee is approximately 500 baht per year for a coverage amount of 50,000 baht, or a rate of about 1 percent, which is considered low when compared to the long-term protection of the public. This project must prioritize the interests of the public, especially those who need to take out loans to participate and must make repayments over a period of seven years. Therefore, it is essential to ensure that installers can maintain the system throughout the warranty period. If, after two years of installation, panels are damaged or a fire occurs, there must be a party responsible for taking care of the public.

Polpir stated that regarding the view held by some private sector participants that the installation fees under the project's terms offer little to no profit or insufficient incentive to participate, he posed the question of whether the state is obligated to design the project to maximize private sector profits. He affirmed that the government must prioritize the public interest. Furthermore, he noted that numerous operators are capable of meeting the project's requirements. "Why are other companies able to do it?" he asked.

He advised operators to assess their own capacity and readiness. If a company can install five systems, it should start with five and take on additional work only after completing the initial jobs. He emphasized that it is the public, not the government, who selects the operators. Citizens are free to choose the company they wish to hire for installation. As for the role of the electricity utility, it will serve as a one-stop service intermediary. Once the public has completed the system installation, the utility will handle grid connection, meter replacement, and the purchase of electricity back from the public.

Polpir stated that regarding the document from the Northern Regional 1 office of the Provincial Electricity Authority (PEA), which surveyed contractors to undertake the installation of 5-kilowatt solar systems at a price of 110,000 baht, despite the project’s benchmark price being 140,000 baht, the PEA Governor has already established an investigation committee to determine the reasons for setting the price at 110,000 baht and to verify whether any damage has occurred to the electricity utility. He clarified that the document was prepared solely at the regional or branch level in Chiang Mai to assess the capacity of contractors to undertake installations and serve the public, and was not approved or certified by the central office. The resulting damage, if any, pertains to the electricity utility, not the government.

“Why is the price 110,000 baht? I do not understand it either. The PEA Governor has already appointed an investigation committee to determine why the price is 110,000 baht when the project’s benchmark price is 140,000 baht,” Polpir said.

Polpir explained that the 140,000 baht benchmark price is an estimated cost calculated based on standard-compliant equipment, including solar panels, circuit breakers, wiring, and inverters. However, the 140,000 baht benchmark is not a mandatory price. Contractors are permitted to submit lower bids, provided they can procure equipment and perform installations in accordance with the specified standards. The public has the right to select services from contractors offering lower prices.

“We are not forcing the sale at 140,000 baht. We stated that 140,000 is the appraised price, a benchmark price we calculated based on the assumption that the solar panels, circuit breakers, electrical wiring, and inverters all meet the required standards. We can deliver the project at this price. And if operators can offer a lower price, the public is free to choose the cheaper option,” Mr. Ploypair said.

Mr. Ploypair stated that regarding the project’s progress, approximately 70,000 individuals have registered to participate. Of this number, about 35%, or nearly 40%, are paying in full without taking out bank loans. The Community Solar Power Project is a beneficial initiative that empowers citizens to generate their own electricity and own small-scale household power plants. This helps reduce energy expenses, particularly for households with high electricity bills. If a household can generate 500 units of electricity, it would save approximately 2,000 baht, an amount the public can save immediately. If they can save around 2,000 baht per month, they would save 24,000 baht annually. Over the long term, this translates into significant savings that help alleviate the financial burden on households.

For households with low electricity consumption or those who do not use electricity during the day, participation in the program is still possible. The electricity generated during the day that is not consumed within the home can be sold back to the utility company, providing additional income from the installation of solar panels. The government aims to ensure that the public benefits from the energy transition, both through reduced household electricity costs and income from selling surplus electricity back to the utility. It is also confirmed that the program will allow the public to choose service providers according to their preferences, with all operations conducted under established standards.

"I would like to assure the public that this is indeed a beneficial program. It allows citizens to become their own electricity producers and to own their own small-scale power plants. For those with high monthly electricity bills, solar panels can help reduce household expenses. Even for those with lower electricity usage or who do not use electricity during the day, they can still install this system. The electricity they generate can be sold back to the utility, providing them with additional income from the solar panel installation as well," Mr. Poonphee stated.