The Evaluation of Feed-in Tariff Models for Photovoltaic System in Thailand

¹ Division of Energy Technology, School of Energy, Environment and Materials, King Mongkut’s University of Technology Thonburi, 126 Pracha Uthit Road, Bang mod, Thung khru, Bangkok 10140, Thailand
² Division of Energy Management Technology, School of Energy, Environment and Materials, King Mongkut’s University of Technology Thonburi, 126 Pracha Uthit Road, Bang mod, Thung khru, Bangkok 10140, Thailand

Abstract

Thailand is targeted to reach 6,000 MW of total installed PV capacity by 2036. Feed-in tariff (FIT) was one of the most successful PV mechanisms of Thailand for promoting PV generated electricity. The evaluation of the FIT models for PV in Thailand which was designed 3 models such as premium price FIT model (Adder) in the first FIT policy to motivate attention on investment in PV power plant. After that used fixed price FIT model for PV ground-mounted and front-end loaded FIT model for solar rooftop. In addition to, Thailand has project-specific tariff design which FIT rates are differentiated tariff payment levels by technology, capacity size, and quality of the resource. As result of FIT policies, the PV installation is 1,287 MW of cumulative capacity in 2014. Furthermore, the financial evaluation of FIT for PV project in Thailand found that Net Present Value (NPV) 32.97 million Baht, Internal Rate of Return (IRR) 13.22%, payback period 8.86 years and B/C ratio was 1.66 which must be implemented in conjunction with other financial support measures such as low interest loans, tax benefits, etc. The several incentives to promote PV in Thailand especially FIT shown as PV projects are to be profitable and incentives to investors.