Decentralised solar undercuts grid costs in rural Southeast Asia

GoRental systems deliver power at a fraction of the grid cost.

Decentralised solar microgrids are replacing grid extension in rural Southeast Asia as high infrastructure and fuel costs make traditional power networks uneconomic.

“In Northern Thailand, decentralised solar microgrids emerged as the primary alternative, delivering power at 10% of the cost of traditional grid extension,” Colin Peh, founder and CEO at GoRental Global Pte. Ltd., told Asian Power.

“For a single village of 31 houses, this transition translates to a total saving of nearly $250,000 in projected electricity bills and avoided fuel costs,” he said via Zoom.

The company’s modular systems bypass long-distance transmission by generating and storing power locally. Peh said decentralised systems could deliver electricity at about $0.03 per kilowatt-hour over 10 years, compared with tariffs of as much as $0.30 per kilowatt-hour in some areas.

Fuel shortages have reinforced the shift. Peh said parts of the Philippines and Thailand face supply constraints that limit generator use.

“Right now, they can’t even afford the fuel to use the generator,” he said, adding that solar-plus-battery systems have become essential in some communities.

The systems use lithium iron phosphate batteries with a lifespan of 15 to 18 years and a charge cycle of about 6,000, with low annual degradation.

“Current deployments provide 1.2 to 1.5 kilowatts per household, maintaining a near-constant utilisation rate of 80% to 100%,” Peh said.

Barriers remain. Thailand imposes a 25% tax on battery products, whilst transporting equipment to remote areas can require hours of travel over difficult terrain.

Peh said the systems are designed for resilience. “We have deployed our IP54 and IP55-rated, waterproof systems in harsh disaster zones like Cambodia and Japan.”

Interest is expanding beyond rural use cases. Commercial clients such as data centres and event operators are exploring decentralised systems, whilst some urban households are adopting smaller units.

“Even residential consumers are sourcing systems from us to put on their balconies, as it only costs about $2,000 and can power laptops, computers, and fridges,” he said.