SET-listed SPCG, a pioneer in solar farm development in Thailand, expects revenue this year to be on par with last year, although it has lost money through the expiry of adder tariffs granted to its solar farms.
Revenue from sales of electricity from its solar farms as well as fuel tariffs added to the electricity it sells to the Electricity Generating Authority of Thailand will offset part of the lost revenue, said Rungfah Larbyoenyong, SPCG's vice-president for accounting and budgeting.
SPCG posted revenue of 4.4 billion baht last year, an increase of 2.3% over 2021.
The company operates 36 solar farms in Thailand with a combined capacity of 260 megawatts. As of the end of June, the company recorded a loss of 386 million baht after adder tariffs applicable to 21 of its solar farms expired.
The 8-baht tariff, introduced by the government to encourage investors to build solar farms, is added to the electricity rate, allowing SPCG to sell electricity to the state grid at a higher price for a period of seven years after the operating dates.
Ms Rungfah said the loss had fallen to roughly 138 million, enabling SPCG to post revenue of 1.74 billion baht in the first half of this year, down from 1.87 billion baht in the corresponding period last year.
The company's 13 other solar farms will see adder tariffs expire next year, leading the company to boost its investment in Japan and increase sales of rooftop solar panels in Thailand to generate more revenue.
Among the company's solar farm investments in Japan are the 30-MW Tottori, the 23-MW Miyako North, the 44-MW Miyako South and the 30-MW Tottori Yonago Mega Solar Farm.
SPCG also owns a 17.9% share in the 480-MW Ukujima Mega Solar Farm which is currently under construction. It is scheduled to start commercial operations by July 2025.
The company will invest another ¥4.7 billion in this project within October 2023.
In the rooftop solar panel business, the company continues to enjoy good sales after solar power systems received a warm welcome from housing developers, factory operators and homeowners.
Pipat Viriyatranon, director of SPCG's financial department, said the company plans to increase sales to new residential projects as electricity bills remain costly this year.
The Energy Regulatory Commission announced in July that the power tariff, which is used to calculate power bills, will drop by 5.3% to 4.45 baht per kilowatt-hour (unit), but the tariff remains high if compared with previous rates of less than 4 baht a unit.
According to SPCG's wholly-owned subsidiary Solar Power Roof Co, which runs the rooftop solar power business, this business generates 15-20% of SPCG's total revenue, with the remainder contributed by solar farms.
Solar Power Roof expects its revenue to reach 1 billion baht this year.