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| Author | Jenny Lin |
| Updated | February 07, 2025 |
As the global energy transition accelerates, Southeast Asia has become a key market for renewable energy development. According to InfoLink’s latest data, PV demand in the region is estimated at 8–12 GW in 2024 and is projected to reach 9–15 GW in 2025. This growth is driven by supportive policies and market liberalization in various countries. In light of these optimistic demand forecasts, InfoLink analyzes the current status and future trends of Southeast Asia’s top four PV markets.
Source: InfoLink Consulting database
Thailand: Ground-mounted PV prevails; residential demand accelerates
Thailand's PV demand in 2024 was 1.5-3.5 GW and is projected to reach 2-3.7 GW in 2025. Thailand plans to initiate regular utility-scale renewable energy tenders from 2022 to 2030. The latest progress involves the second phase of renewable energy tenders in 2024, with PV projects making up about 2.6 GW. These utility-scale projects will likely provide long-term support for overall demand beyond 2025.
Thailand officially launched the trial phase of the Direct Power Purchase Agreement (DPPA) in June 2024, setting a green electricity procurement cap of 2,000 MW for high electricity users. This policy aims to boost PV demand from C&I users. Beyond the DPPA trial, the Thai government has introduced a series of supportive policies, including the 2022-2030 FiT (Feed-in Tariff) program and a residential PV scheme. These initiatives will likely drive the long-term growth of Thailand's PV market.
Philippines: Renewable energy policies are well-established grid integration remains a challenge
The Philippine PV market saw nearly fivefold growth in 2024, with demand surging from the MW level in 2023 to 2–2.4 GW by late 2024, positioning the Philippines as a leader in the Southeast Asian PV market. Demand is expected to reach 2.2–3 GW in 2025.
The market growth has been mainly driven by the Green Energy Auction Program (GEA), launched in June 2022. By the second auction round in July 2023, a total of 3.24 GW in PV projects had been awarded, sparking significant developments. However, renewable energy progress in the Philippines has faced setbacks due to policy uncertainties. In June 2024, the government suspended new project applications to revise guidelines for renewable energy development, resuming only in late November 2024.
Despite clearer policies, the Philippines faces significant challenges in grid integration. Insufficient grid absorption capacity may limit market growth, and substantial upgrades to existing infrastructure have become increasingly urgent.
Malaysia: PV market grows steadily; policies facilitate liberalization and residential demand boost driven by policies
Malaysia’s PV demand reached 1.2–1.8 GW in 2024 and could rise slightly to 2 GW in 2025. While overall growth is modest, recent policy changes highlight the government’s commitment to PV development.
For residential projects, the expanded NEM 3.0 (Net Energy Metering) quotas are expected to boost small-scale PV installations. For ground-mounted projects, Malaysia launched the fifth Large Scale Solar (LSS 5) in April 2024, with projects totaling 2 GW of PV capacity. The CRESS (Corporate Renewable Energy Supply Scheme), which started in September 2024, allows large C&I users with additional electricity needs to negotiate power purchase and supply agreements directly, bypassing Tenaga as an intermediary. This is anticipated to promote market liberalization.
By the end of 2024, regulations for self-consumption projects were further relaxed, providing industrial and agricultural users with more flexibility.
The Solar for Rakyat Incentive Scheme (SolaRIS), implemented in March 2024, offers a 350 MW tax exemption for projects to be completed by March 2025, likely to stimulate a shipment peak in early 2025. These initiatives are set to help Malaysia achieve its 2050 goal of 70% renewable energy generation, reflecting the PV market’s steady growth potential.
Vietnam: FIT reform and DPPA drive PV market growth
Vietnam is quickly becoming a major player in Southeast Asia’s PV market. The halt of the FIT (Feed-in Tariff) scheme in 2021 had slowed renewable energy growth. However, with Decree 19 in late 2023, the FIT system shifted to annual reviews, reactivating subsidies and boosting the market.
In 2024, new policies provided additional support. The DPPA (Direct Power Purchase Agreement) allows businesses to buy power directly from developers, reducing dependence on the national grid and encouraging more PV investments. Notice No. 356/TB-VPCP, effective in July 2024, simplified the self-consumption rooftop PV application process and eased capacity limits, making installations easier for households and small businesses. By 2024, PV demand reached 1–1.6 GW, with 2025 demand expected to rise to 1.4–2.4 GW, growing 40–50%. Vietnam is showing faster growth than most other Southeast Asian markets.
PV demand will surge by over 70% by 2028, requiring grid upgrades
Southeast Asia's PV market is growing steadily, despite weaker demand in some countries. Singapore, limited by geography, has turned to cross-border green power trade through the ASEAN’s LTMS-PIP initiative since 2022 and plans to import 4 GW of green electricity by 2035. Improved transmission technology is driving discussions on undersea cables and regional power connectivity.
Indonesia faces challenges with weak infrastructure and the end of rooftop net metering in 2024, affecting residential demand. However, demand can still be boosted by utility-scale project tenders and abundant hydropower resources. According to Indonesia's Ministry of Energy and Mineral Resources, 14.7 GW of potential floating PV capacity offer growth opportunities.
PV demand in Southeast Asia is expected to rise by over 70% by 2028, but issues remain regarding grid capacity, slow approvals, and policy hurdles. Governments must enhance cooperation, upgrade grids, and accelerate projects to support the energy transition.
Source: InfoLink Consulting database