Leasing and renewable energy firms launch JV to promote solar rooftops
Saksiam Leasing (SAK), a Thailand personal loan provider, has formed a joint venture with TC Renewable Energy to form with the goal of entering the solar rooftop system installation business and providing financing to Thai households nationwide.
The joint venture, Saksiam TC Energy Co Ltd, will have a registered capital of 50 million baht, with SAK and TC Renewable Energy Co Ltd holding 35% and 65%, respectively. This joint venture is scheduled to launch in January 2023.
Siwaphong Boonsalee, SAK's managing director, said at a press conference on Thursday that the joint venture is a significant step in expanding the service of providing loans for the installation of solar rooftop systems at residential properties, and supporting the public’s access to solar power as a clean and widely available source of energy.
He said the decision was made after SAK saw the potential for growth of the solar rooftop installation business in the future because of the government's policy to promote the use of clean energy in the business and household sectors.
Furthermore, as the system has already proved effective in lowering electricity bills, the demand for solar rooftop from households is increasing.
According to TTB Analytics, the solar rooftop market in Thailand is expected to grow at 22% per year, reaching 6.7 billion baht by 2025.
However, Siwaphong pointed out that one of the biggest challenges for installing solar rooftop panels right now is a lack of funds.
"The cost of installation is approximately 200 thousand baht, which is quite high. So, after partnering with TC Renewable Energy, SAK will provide an eight-year soft loan with a low interest rate for households, particularly upcountry, to have their own solar rooftop," he said.
He explained that each household could repay the loan with money saved from their electricity bills.
In an era when utility prices, particularly for electricity, are rising, SAK is confident that loans for the installation of home solar rooftop systems will help reduce costs for the public, thereby strengthening household economies, he added.
SAK will be in charge of marketing and providing solar rooftop loan services to interested parties through more than 1,029 branches across the country by the first quarter of 2023. Saksiam Leasing's loan portfolio promotes diversity and responsiveness to public needs.
Phurit Laocharoen, chief operating officer of TC Renewable Energy, noted that the company has more than 10 years experience in solar rooftop design and installation. This partnership is a significant step for the company in transferring that knowledge from the business sector to the residential sector.
He explained that currently there are two types of solar rooftop systems available, but the more popular option is the On Grid system, which must be connected to a local Electricity Authority's power grid.
If the solar panels generate more electricity than is needed during the day, the meter owner may sell the excess to the government. The current purchase price is 2.20 baht per unit.
"On average, the installation of solar panels helps customers save electricity costs by at least 70% per billing cycle, or around 2,000 - 7,000 baht per monthly electricity bill," said Phurit. "A single solar panel can last 30 years. So, using a solar rooftop will be beneficial in the long run.”
The goal of the collaboration between SAK and TC Renewable Energy is to instal solar rooftops covering at least 100,000 households within the next three years. Besides, this joint venture will be able to generate approximately 500 megawatts of electricity from solar power, with a revenue of around 1 billion baht.
