Decentralized Electricity Generation from Solar PV

Blue solar panel

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Decentralized Electricity Generation from Solar PV
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Through B2B and B2C models, companies can offer solar PV installation services to households, communities and other businesses to make revenue from selling the equipment involved, service fees, or from selling the electricity to the grid. This IOA will help customers reduce energy cost by substituting fossil fuel energy with solar energy, help remote communities and low income households gain access to clean and affordable energy, and help the planet by reducing greenhouse gas emissions. Investors can invest money in equipment and other capital that companies will utilize to offer solar PV installation services to customers. Companies active in this space are:

Leonics is a microgrid technology company in Thailand, renewable energy technical expertise since 1991. Leonics offers services in ASEAN to set up both on-grid and off-grid solar energy systems at various scales, including household, village, big business, and community. Leonics can also provide an energy trading platform for community micro-grids using blockchain. Many of the projects include an energy storage system and back-up generator using diesel (1).

SCG Solar Roof Solutions (Siam Ceent Group) and GRoof (Gunkul Engineering) are two examples of Thai companies that offer solar panel installation services for households. SCG Solar Roof Solutions is a service under the SCG that has expertise in construction for over 80 years and focuses on innovative solutions and digital tools (7).

SENA is a real estate developer that partnered with a solar rooftop retailer and installer to sell houses that already have solar rooftops installed. SENA launch the SENA Solar ENergy company in 2015. The solar rooftop innovations are installed on most projects of SENA’s real estate USD 213.6 million (THB 7.1 billion) sale value in 2021 (15).

Expected Impact

This IOA helps replace fossil fuels with renewable sources in energy production, decrease greenhouse gas emissions, and help individuals reduce energy costs.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in GPM)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Affordable and Clean Energy (SDG 7)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13)
Sector Sources
  • 1) https://sustainabledevelopment.un.org/content/documents/279482021_VNR_Report_Thailand.pdf 2) http://www.eppo.go.th/images/POLICY/PDF/PDP2018.pdf 3) https://www.pier.or.th/abridged/2018/16/ 4) https://www.boi.go.th/upload/content/alt_energy_5a4faa2f9dc0b.pdf 5) https://www.krungsri.com/en/research/industry/industry-outlook/Energy-Utilities/Power-Generation/IO/io-power-generation-21 6) https://www.trade.gov/energy-resource-guide-thailand-renewable-energy 7) https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2017/Nov/IRENA_Outlook_Thailand_2017.pdf 8) https://policy.asiapacificenergy.org/sites/default/files/Alternative%20Energy%20Development%20Plan%202018-2037%20%28AEDP%202018%29%28TH%29.pdf 9) http://www.eppo.go.th/images/Infromation_service/EppoAnnualReport/EPPOAnnualReport2014.pdf 10) https://www.sei.org/perspectives/thailands-energy-transition 11) https://mediamanager.sei.org/documents/Publications/Bangkok/SEI_2017_Report_USAID-CleanPowerAsia-GenderEquality-WhitePaper.pdf 12) https://www.boi.go.th/upload/content/alt_energy_5a4faa2f9dc0b.pdf 13) https://krungthai.com/Download/economyresources/EconomyResourcesDownload_457Solar_Rooftop_ภาคครัวเรือน_แหล่งรายได้เสริมของผู้พัฒนาอสังหาฯ_31_03_64.pdf 14) http://www.nso.go.th/sites/2014en/Survey/social/household/household/2019/Summary_2019.pdf
IOA Sources
  • 1) https://www.leonics.com/index.php 2) https://krungthai.com/Download/economyresources/EconomyResourcesDownload_457Solar_Rooftop_ภาคครัวเรือน_แหล่งรายได้เสริมของผู้พัฒนาอสังหาฯ_31_03_64.pdf 3) http://www.eppo.go.th/images/POLICY/PDF/PDP2018.pdf 4) https://sustainabledevelopment.un.org/content/documents/279482021_VNR_Report_Thailand.pdf 5) https://uk.practicallaw.thomsonreuters.com/1-628-5906?transitionType=Default&contextData=(sc.Default)&firstPage=true 6) https://www.krungsri.com/en/research/industry/industry-outlook/Energy-Utilities/Power-Generation/IO/io-power-generation-21 7) https://www.gunkul.com/th/our-business/groof/groof 8) https://www.sei.org/perspectives/thailands-energy-transition/" 9) https://mediamanager.sei.org/documents/Publications/Bangkok/SEI_2017_Report_USAID-CleanPowerAsia-GenderEquality-WhitePaper.pdf 10) https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2021/Apr/IRENA_RE_Capacity_Statistics_2021.pdf 11) https://data.worldbank.org/indicator/SP.POP.TOTL?locations=TH 12) https://www.ucsusa.org/resources/environmental-impacts-solar-power 13) https://www.boi.go.th/upload/content/alt_energy_5a4faa2f9dc0b.pdf 14) https://www.boi.go.th/upload/content/BOI-A%20Guide_EN.pdf 15) https://www.prachachat.net/property/news-782922 16) https://www.irena.org/publications/2016/Jun/End-of-life-management-Solar-Photovoltaic-Panels 17) http://www.eppo.go.th/images/POLICY/PDF/EEP2015.pdf 18) https://www.iea.org/policies/1233-energy-conservation-promotion-fund-encon-fund 19) https://www.oecd.org/env/GFE-Gender-Issues-Note-Session-5.pdf 20) https://asianinsiders.com/renewable-energy-in-thailand-to-double-by-2030/