Construction materials producer SCG Cement-Building Materials aims to achieve sales of more than 1 billion baht in solar roof solutions this year, double the tally recorded last year, based on rapidly increasing demand.
Wachirachai Koonamwattana, head of smart system solution business at the company, said alternative energy sources are increasingly popular, driving the growth of the solar rooftop market.
"Electricity usage during midday is rising, leading to an average increase of 30-50% in electricity costs," he said. "This is causing the majority of consumers to turn to alternative energy sources, which are up to 12-15% of total electricity consumption."
Globally, the proportion of renewable energy consumed is projected to increase to 85% by 2050, said Mr Wachirachai.
Solar energy usage is rising because of several factors, including a significant increase in the use of electric vehicles, consistently rising electricity rates over the past few years, and the government's automatic adjustment of variable electricity tariffs, he said.
The increasing popularity of solar energy is also being fuelled by the decreasing costs of materials, equipment and installation technologies.
Property developers are also integrating solar systems as basic equipment for their residential projects.
"The government can promote the use of solar energy through measures such as tax incentives," Mr Wachirachai said. "Another potential method is solar energy trading, which involves the exchange of electricity between households and is expected to occur in the future."
SCG entered the solar rooftop market in 2021 and sales have doubled every year since.
The company aims to double sales to 1 billion baht in 2023 from 500 million last year.
"The sales target for 2023 covers 2,000 houses and more than 100 projects," he said. "Sales more than doubled from the same period last year in the first four months, driven by high electricity bills."
Based on current electricity prices, the break-even point for installing solar rooftops typically ranges from 7-10 years, depending on factors such as the size of the system, weather conditions and electricity usage behaviour.
"Our solar rooftop solutions are suitable for those who pay electricity bills ranging from 3,000-20,000 baht per month," said Mr Wachirachai. "The initial cost savings can typically amount to 600-800 baht per month."
Most customers choose to stay on the public grid because of lower costs. The average price for SCG's solar rooftop system is 10-30% higher than competitors because it covers after-sales services and a roof health check.
The installation period takes three days, but it takes three months to survey and design a system and another three months to get permission from three agencies: the local authority, an electricity distributor and the regulator.
