PPA vs Self-Investment: Which Solar Model Suits Your Thai Business?

When Thai businesses decide to go solar, one of the first questions they face is: should you buy the system outright, or use a Power Purchase Agreement (PPA)? Both models have distinct advantages, and the right choice depends on your financial position, operational needs, and long-term goals.

What Is a Solar PPA?

A Power Purchase Agreement is a financing model where a third-party developer installs, owns, and maintains the solar system on your property. You simply buy the electricity at an agreed rate — typically 10-30% lower than grid price. Zero upfront cost, and the developer handles everything.

For a detailed explanation, read our guide: What Is Solar PPA?

What Is Self-Investment?

Self-investment means your business purchases the solar system outright. You own all equipment from day one and keep 100% of electricity savings. Typical cost: 25,000-35,000 THB per kWp installed. Payback period: 3-5 years in Thailand.

Key Differences

Upfront Cost: PPA = zero. Self-investment = 25,000-35,000 THB/kWp.

Monthly Savings: PPA saves 10-30% off grid rate. Self-investment saves 30-60%.

Ownership: PPA = developer owns system. Self-investment = you own it.

Maintenance: PPA = developer handles it. Self-investment = your responsibility.

BOI Incentives: PPA = developer claims them. Self-investment = you claim them directly.

25-Year Savings: PPA delivers lower but guaranteed savings. Self-investment delivers nearly double the lifetime savings.

When PPA Makes Sense

Choose PPA when capital is constrained, you prefer zero risk, you might relocate within 10 years, or you need ESG compliance without capital commitment.

When Self-Investment Wins

Choose direct purchase when capital is available, you own your facility long-term, you want maximum ROI, or you qualify for BOI tax incentives (CIT exemption + import duty waiver).

Financial Example: 300 kWp System

PPA: Zero upfront, 90,000 THB/month savings (22% reduction), 27 million THB over 25 years.

Self-Investment: 9 million THB upfront, 180,000 THB/month savings (45% reduction), 45 million THB over 25 years. With BOI: payback drops to 3.2 years, savings reach 52 million THB.

Compare Your Options

The right choice depends on your specific situation. Use these free tools to model both scenarios:

CapSolar offers both PPA and direct purchase options for commercial and industrial clients across Thailand. Visit capsolar.co.th for a free consultation.

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