Thailand has decided to install 5 GW of rooftop solar panels within a year, using a 200 billion-baht ($6.07 billion) energy transition emergency fund to protect citizens from soaring liquefied natural gas (LNG) prices drive by the Iran War, Energy minister Akanat Promphan said on September 2.

The move makes Thailand the third major Asian LNG importer to turn to rooftop solar as a hedge against volatile gas prices, following similar pushes in the Philippines and Bangladesh.

Government data from the six months to June showed that renewable, including solar, account for about 10% of Thailand's electricity generation. Gas, on the other hand, accounts for over 60%. Over a quarter of the gas used for electricity is imported, and Thailand buys about half its LNG on the spot market, making it vulnerable to price shocks.

The 5 GW target will be included in Thailand's long-term power development plan due next month. TransitionZero, an energy modelling firm, estimates that the country's small-scale solar capacity will double if the target is met. Residential rooftop solar accounts for 1.4 GW of that capacity.

Thailand was Southeast Asia's largest solar adopter until 2018, before installations slowed and Vietnam overtook it. Ekniti Nitithanprapas, the Finance Minister, said last month that the government will provide a financial assistance of 50,000 Baht per household, along with loans to install rooftop solar panels.

Akanat said the government is also seeking new domestic gas sources in offshore fields and new long-term LNG purchase agreements to diversify imports.

He added that PTTEP, the exploration arm of state energy giant PTT, has set aside a budget for exploring new gas fields in the Andaman Sea and Myanmar.