Thailand’s rising electricity costs are not just a concern for businesses; they are placing a financial burden on schools. In 2023, a local business daily, Bangkok Biz, reported that many schools were struggling with high electricity liabilities.
For example, Mahidol Wittayanusorn School, located on the Salaya Campus of Mahidol University in Nakhon Pathom province, faces monthly electricity bills exceeding 1 million baht. Some large schools receive annual government subsidies of 15 million baht, but 80% is used to pay for electricity. This leaves little room for investment in other educational resources.
The good news is that a solution is literally within reach or, rather, right above us. Solar photovoltaic rooftop systems provide a way for schools to generate electricity at a cost that is 20–30% lower than the grid. With Thailand’s abundant sunlight, schools could become energy self-sufficient, reducing their reliance on the national grid and long-term expenses.
Despite the clear benefits, high upfront costs remain a significant obstacle. A 300kWp solar PV system, suitable for a medium-to-large school, costs over six million baht. This initial investment is simply unaffordable for most schools. Six million baht might not be a big investment for private and international schools in Bangkok. But what about cash-strapped public schools that rely on the government’s budget?
My question is: Why are there no financing mechanisms to help these public schools get money to invest in clean and renewable energy that can also help reduce long-term costs?
A successful model for overcoming this financial hurdle has already been proven in the UK. The Solar for Schools initiative helps schools install solar panels without upfront costs. More than just an energy solution, the programme integrates sustainability education into the curriculum, providing students with hands-on learning about climate change and renewable energy. What is a better way to teach students about sustainability than making schools’ rooftops able to generate electricity?
Since 2016, the initiative has installed over 11.5MW of solar power on school rooftops in the UK. The process begins with the technical assessment of the school’s roof capacity, energy potential, and electricity consumption pattern. The preliminary study ensures that the system maximises savings and financial viability.
If the project is feasible, the next step is securing financing. Some schools in the UK have the funds to invest in solar outright, but crowdfunding offers an innovative alternative for those that don’t.
Crowdfunding is a financing method that raises funds from many individuals, each contributing a relatively small amount, often through online platforms. It allows projects to access capital outside of traditional banking or investment channels.
Non-profit crowdfunding platforms like Ethex have successfully raised funds for solar schools in the UK. Ethex raised £1.5 million (50.5 million baht) by issuing bonds that offer investors an attractive return — an annual return of 2% plus inflation at 3% as maximum.
In short, this model allows bondholders to fund solar installations.
Under this financial model, school staff do not have to worry about management and energy production as the local non-profit Solar for Schools Community Benefit Society owns the solar panel system and provides maintenance. Schools then sign long-term power purchase agreements to buy electricity at a competitive price. The revenue from these agreements covers operating costs and repays investors over 20 years.
Under this model, schools only provide rooftop space, purchase cleaner solar electricity, and may even receive a share of any surplus profits with minimal risk and little to no upfront cost.
This win-win approach is highly relevant for Thailand, and I always wonder why our policymakers and education ministry have not used such a financial model to help public schools get solar electricity.
Thailand has plenty of sun. Solar panels and related systems have become increasingly affordable, and the government has pledged to increase the ratio of renewable energy. Indeed, installing renewable energy, like solar panels, can help governments and consumers deal with the rise of utility bills in a long-term manner.
But let me offer another point about grid electricity — the Thai grid depends heavily on imported LNG, which drives electricity prices volatilities. Solar rooftops can reduce price volatility and dirty fossil fuels.
Indeed, the private sector in Thailand has already begun to adopt this model, with large manufacturing firms signing private power purchasing agreements with solar developers. These agreements allow companies to install solar panels with no upfront cost, committing instead to purchasing solar-generated electricity at a lower rate than the grid.
Unfortunately, solar adoption in public buildings, especially schools, is limited and rare due to regulatory barriers. Implementing the UK model here is difficult due to the state’s rigid procurement regulations for government buildings.
A notable attempt to implement this model in the kingdom is the Thailand Solar Fund, which supports school solar projects through donations. While commendable, donation-based models struggle to secure consistent funding for widespread adoption.
Operating as a social enterprise, the Thailand Solar Fund consortium has asked the government to revise the rules, making installing solar panels on government buildings easier and faster. Policymakers should clear the red tape. Until it is done, this remains a missed opportunity.
Indeed, innovative financing models such as crowdfunding are nothing new here. Thailand’s Securities and Exchange Commission already allows crowdfunding. As of 2022, SMEs raised over 3.8 billion baht through crowdfunding platforms. But almost none of this has gone toward solar projects. In contrast, crowdfunding has successfully financed thousands of renewable energy projects in Europe.
The potential of solar expansion should not be limited to schools. Other government buildings could also benefit from similar initiatives. Electricity usage data from Thailand’s Provincial Electricity Authority shows that government buildings peak in energy demand between 9am and 3pm, perfectly matching solar generation patterns.
Thailand could replicate the UK’s Solar for Schools model with the right policy support, investor engagement, and regulatory adjustments. Policy change can help us reduce electricity costs for schools and government buildings, reduce CO₂ emissions, and expand solar rooftop adoption.
The question is why we haven’t done it yet.
First published on the ฺBangkok Post.
