What Is UGT2 — Understand in 40 Seconds
UGT2 (Utility Green Tariff Phase 2) is Thailand's official program letting electricity users buy renewable power (solar/wind/biogas) directly through the MEA/PEA utility, with a Renewable Energy Certificate (REC) bundled on one bill, on a 10-year contract, regulated by the ERC. It suits factories needing verified green power for RE100 — no roof or capex required.
UGT2 = Buy green power + REC through the utility, one bill, 10-year term
The core of UGT2 is simplicity: no PPA to negotiate, no land to find, no roof needed — you simply enroll through your utility and pay for renewable power plus the REC bundled on one monthly bill. The physical electricity flows through the grid, while the REC is tracked on the I-TRACK / I-REC registry, which is RE100- and CDP-compliant and therefore audit-ready for customer and supply-chain ESG reviews. UGT2 is delivered through all three utilities — EGAT (generation), MEA (Bangkok metro), and PEA (provincial, covering most industrial estates). Unlike Phase 1 (UGT1), which draws on existing hydro, UGT2 uses new renewable plants and lets you select your energy source.
UGT1 vs UGT2 — What's the Difference
Buyer takeaway: UGT2 lets you choose new renewables (solar/wind/biogas) and lock a 10-year contract, whereas UGT1 is existing hydro on an annual contract with no source selection. The table below compares both phases per official data and news reporting (rates are approximate by period — verify the current rate with the ERC).
| Dimension | UGT1 | UGT2 |
|---|---|---|
| Energy Source | Existing state hydro (7 plants) | New solar/wind/biogas (incl. solar+BESS) |
| Source Selection | No | Yes (state or private portfolio) |
| Contract Term | Annual (1 year) | 10 years (fixed) |
| Capacity | ~2,000 GWh/yr (est. 2025) | ~4,000 GWh/yr/portfolio + 175 solar & wind plants (estimated at full COD) |
| Project COD Timeline | Existing assets | Coming online 2024–2030 |
| Rate (incl. REC) | ~4.21 THB/kWh (2025); 0.0375 THB green premium = PROPOSED for 2026 (not yet adopted) | ~4.55–4.56 THB/kWh (Portfolio A 4.5475 / B 4.5622, per ERC draft criteria + news reports Mar 2026) |
| Best Fit | SMEs / short commitment | Large industrial & commercial |
Rate set by the ERC — verify current period. Figures above are approximate per draft criteria and news reporting; subject to change by ERC announcement.
Who Can Apply — Eligibility for Factories
Good news for most factories: nearly all qualify, because UGT2 is open to tariff Type 3 (Medium General Service), Type 4 (Large General Service), and Type 5 (Specific Business Service) — which are the standard rate classes for factories and commercial operations already. There are three main conditions:
Before applying, it helps to understand your bill structure and tariff class and your current demand charge / TOU to model total cost under UGT2.
How to Apply for UGT2 — 6 Steps (First-Come, First-Serve)
UGT2 allocation is first-come, first-serve — portfolio quotas are limited, so interested factories should prepare documents and apply early. There are six main steps:
Register / verify identity
Complete the application
Place your booking
Await allocation result
Confirm documentation
Service commences + Bundled RECs activate
Tip: because allocation is first-come-first-serve, preparing your consumption data and tariff class in advance helps you file faster than competitors.
UGT2 vs Direct PPA vs On-site Rooftop vs IREC — What to Choose
This is the most important section — there are several ways to green a factory, but they differ in cost, complexity, and whether you get physical power or just a certificate. The table below compares five options. Read more: [Direct PPA for factories](/knowledge/direct-ppa-thailand-factory), [What is PPA](/knowledge/what-is-ppa), [PPA providers in Thailand](/knowledge/ppa-providers-thailand-comparison), and [what is an IREC](/knowledge/irec-renewable-energy-certificate-thailand).
| Mechanism | UGT2 | UGT1 | Direct PPA | On-site rooftop | IREC-only |
|---|---|---|---|---|---|
| Capex required | None | None | None (developer-owned) or low | High (or 0 with PPA) | None |
| Roof / land needed | No | No | Depends | Yes | No |
| Indicative cost | ~4.55–4.56 THB/kWh (reported) | ~4.21 THB/kWh | Negotiated, often below grid | ~2 THB/kWh (LCOE) | Certificate fee only (no power) |
| Physical green power | Yes (bundled REC) | Yes | Yes | Yes | No — certificate only |
| RE100 / CDP valid | Yes | Yes | Yes | Yes (with REC) | Yes |
| Contract term | 10 yr | 1 yr | Typically 10–25 yr | Asset life ~25 yr | Per purchase |
| Source selection | Yes | No | Yes | Self | N/A |
| Best for | Large factories greening grid-import | SME short-term | Large load with negotiation | Any factory cutting cost first | Cheapest paper-only RE100 fix |
Rates approximate, as reported 2026; the ERC sets official tariffs — verify the current period.
Is UGT2 Worth It for Your Factory?
Let's be honest: UGT2 is not the cheapest path. At ~4.55–4.56 THB/kWh (reported), UGT2 is a premium over conventional grid power and well above your own on-site solar cost (LCOE ~2 THB/kWh). So UGT2 does not replace rooftop solar — it complements the kWh your roof can't reach.
The Right Strategy: Rooftop First, Then UGT2 to Top Up to RE100
The smartest sequence for a factory is: (1) maximize rooftop solar first — it has the lowest cost (~2 THB/kWh) and fastest payback; (2) for the kWh you can't self-generate — night-time load, insufficient roof, or demand beyond roof capacity — use UGT2 to convert that grid-import into verified green power. Result: 100% renewable without overbuilding your roof, and the 10-year contract helps hedge Ft / fuel volatility. See the factory net-zero journey and compare with net metering / net billing for surplus you can sell back.
~4.55–4.56 vs ~2 THB/kWh — UGT2 greens what your roof can't reach
How CapSolar Can Help
CapSolar designs and installs factory rooftop solar, backed by 80+ MWp / 150+ projects in Thailand, 100+ clients, and 85,000+ tons of CO₂ avoided. We help you plan both layers: maximize the roof first (lowest cost), then assess whether the remaining grid-import is best topped up with UGT2, Direct PPA, or IRECs for your RE100 goal. Not sure where to start? Let us assess your roof and remaining grid-import for free.
Rooftop First, Then UGT2 to Top Up — Start a Free Assessment
Consult CapSolar experts for free — we analyze your roof and remaining grid-import.