Siam Commercial Bank has collaborated with PTT Oil and Retail Business PCL (OR) to initiate a solar rooftop loan project tailored for PTT gas station dealers. Under this program, eligible dealers can secure a loan for up to 100% of their solar investment, with a maximum repayment period of 10 years. The loan offers a principal-free period of one year and a fixed interest rate of 3.99% per annum during the initial year, supporting the Net Zero strategy that aligns with OR’s vision.
The joint effort aims to launch a nationwide campaign encouraging PTT stations to adopt solar energy, generating electricity for station usage. This transition toward clean energy underscores PTT’s commitment to being a leading service provider reducing its environmental impact while aligning with PTT Station’s business ethos, symbolized as a “station that spreads joy.” By embracing clean energy solutions, PTT stations intend to grow sustainably alongside the people, society, communities, and the environment. The target is to convert the first 200 PTT stations into green stations with solar rooftop loans by the end of 2023.
During the collaboration announcement, Pikun Srimahunt, Senior Executive Vice President and Chief SME Banking Officer at Siam Commercial Bank, emphasized the challenge faced by Thai SMEs in adopting sustainable business practices, particularly in reducing carbon dioxide emissions from their production processes. She noted that failure to address these issues promptly could lead to a decline in competitiveness for SMEs in the future. To overcome this challenge, it is crucial for banks and large corporations with an understanding of the process toward Net Zero to join forces and assist SMEs in transitioning to solar energy, which offers a swift and highly efficient approach to curbing carbon emissions.
To facilitate this transition, the Bank offers SCB SME Green Finance solutions, providing a credit line to support business sustainability and financing for technology investments aimed at enhancing production efficiency and cost management across various industries. This commitment aligns with the Bank’s core goal of achieving net-zero emissions by 2030 and eliminating emissions from lending and investments by 2050.
“Recognizing the importance of curbing carbon emissions among PTT station operators, PTT Oil and Retail PCL (OR) is actively promoting the adoption of solar rooftops by gas station dealers. To support this initiative, the Bank has introduced the SCB SME Green Finance program, offering solar rooftop loans to PTT station dealers. The loans enable them to invest in solar rooftops, leading to energy savings and a significant reduction in carbon emissions, thereby contributing to a more environmentally friendly nation.
The credit limit for these loans ranges from 2 million to 5 million baht, with a flexible repayment period of up to 10 years. The first PTT station dealer to use this solar rooftop loan is the PTT Station in Chonburi Province, managed by Lert Prasert Oil Co., Ltd. The Bank anticipates around 200 PTT station dealers will apply for solar rooftop loans by the end of 2023,” said Pikun.
Piman Poolsri, Senior Executive Vice President of Oil Retail Business at PTT Oil and Retail Business PCL, stressed the importance of installing solar rooftops at PTT stations as a vital environmental initiative that aligns with their vision of being a “station that spreads joy,” fostering sustainable growth alongside people, society, communities, and the environment, in harmony with OR’s SDG concept, G-Green, aimed at creating a cleaner society.
OR is committed to equipping over 2,000 PTT stations nationwide, managed by OR, and more than 1,600 dealers, with solar rooftops, leading the way as a leader in clean energy service stations. This initiative will not only reduce environmental impacts but also enhance operational efficiency, resulting in cost savings for businesses. The effort is in line with OR’s ambitious target to generate 18 MW of electricity from clean energy via solar rooftops by 2030, while concurrently striving for carbon neutrality by 2030 and ultimately achieving net zero carbon emissions by 2050 from its business operations.
The collaboration with Siam Commercial Bank to provide financial solutions to station dealers is pivotal in making PTT Station a prominent figure in clean energy service stations and supporting OR in realizing its goals successfully.
Kornsinee Waivong, the Managing Director of Lertprasert Oil Co., Ltd., shared that her company operates two PTT stations located in Nong Yai and Nong Yai-Wang Chan NY344 stations in Chonburi province. Situated in community areas near factories and industrial estates, these gas stations cater to a large number of users, and being in the Eastern region, they serve as a gateway to tourism.
Consequently, the electricity consumption within these stations is considerable, prompting the company to seek more efficient cost management solutions. In alignment with OR’s initiatives, Siam Commercial Bank’s solar roof loans, with favorable terms, offer the necessary flexibility for liquidity management for Lertprasert Oil Co., Ltd. With the loan, the company successfully installed solar panels on the station’s roofs, resulting in a significant reduction of over 20% in electricity costs. The company takes pride in contributing to the country’s efforts in mitigating climate change by curbing greenhouse gas emissions.
The Solar Rooftop Loan is part of SCB SME Green Finance Solutions, offering a credit line of up to 100% of the investment, with a maximum repayment period of 10 years, including a 1-year grace period. The fixed first-year interest rate stands at 3.99% per year.
Entrepreneurs interested in applying for a loan can do so between August 2, 2023, and December 31, 2023.