Rooftop solar: New segment helps investors diversify investment portfolios in Vietnam

Rooftop solar power has been designated as an emerging energy segment in Vietnam that enables investors to expand their business.

Rooftop solar power gains popularity in Vietnam. Photo: SolarBK

Rooftop solar in Vietnam has received growing attention in terms of both policy making and capital investment over the past years as part of the government’s efforts to increase the country’s power capacity for the double-digit annual energy growth.

As of September 2020, Vietnam is home to some 50,000 operational rooftop solar projects with a combined capacity of about 1,200 MWp, according to Vietnam Electricity (EVN).

Half of the project with capacity of 758.2 MWp were installed in the first eight months of 2020.

Industry insiders revealed that rooftop solar installation prices have dropped by half in the last three years to VND14-VND18 million (US$608-US$782) per kWp now and this has prompted increasing demand.

Mr. Sven Ernedal, Project Director of the Renewable Energy and Energy Efficiency (4E) Project in Vietnam. Photo: GIZ Vietnam

To meet the need for understanding and overview in this sector, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH launched in October 2020 “Investment Guidelines for Commercial-Industrial Rooftop Solar Systems in Vietnam.”

The instruction is aimed to provide factual, practical and up-to-date information to developers or investors of commercial or industrial rooftop solar systems.

In a latest move, GIZ for the first time cooperated with Ho Chi Minh Hepza Businesses Association (HBA) to organize a workshop titled “Innovative Industrial & Commercial Solar Rooftop PV Power Solutions for Vietnam.”

Mr. Tran Viet Nguyen, Vice President of Business Department of EVN. Photo: GIZ Vietnam

The workshop that was held earlier this week introduced the guidelines discussed investment opportunities for rooftop solar systems (RTS) for industry and commerce.

Main contents of the guidelines presented during the workshop included information on the development of the new RTS market in Vietnam, current policies and legal frameworks, and guidance on choosing the most suited business investment model.

The guidelines also describe all critical steps of RTS project development, and provide practical tips and insights based on the experience of companies in Vietnam that have developed rooftop solar projects in the past.

At the workshop, EVN introduced EVNSOLAR (http://solar.evn.com.vn/) – a rooftop solar platform providing a comprehensive solution for household and business investors with a roof and interested in RTS projects.

Speaking at the workshop, Mr. Tran Thien Long, HBA’s deputy chairman emphasized that businesses are paying great attention to rooftop solar after noticing the impressive market grown during the past year and a half.

Mr. Sven Ernedal, Project Director of the Renewable Energy and Energy Efficiency (4E) Project in Vietnam, expressed hope to contribute to the development of solar energy as a reliable, affordable and sustainable energy source for industry and commerce in Vietnam.