Opportunities in Vietnam's Rooftop Solar Market

Vietnam’s rooftop solar market is experiencing unprecedented growth, positioning the country as a leader in renewable energy within Southeast Asia. Supported by favorable government policies, attractive incentives, and rising investment from both local and international players, the sector has quickly evolved into a vital part of Vietnam’s energy landscape.

In this blog, we will explore the current state of the rooftop solar market, highlight key industry players, examine technological advancements, and uncover future opportunities shaping Vietnam’s solar-powered future.

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Current Landscape of the Rooftop Solar Market in Vietnam

The rooftop solar market in Vietnam has witnessed remarkable growth, with the total capacity for solar power reaching approximately 16,567 MW by the end of 2022. Notably, rooftop solar alone contributes over 9,000MW to this figure, underscoring the significant role of rooftop installations in the nation’s renewable energy portfolio. This growth trajectory is expected to continue, with projections indicating that the Vietnam Solar Energy Market capacity will reach 29.43 bn KWh by 2025.

In the bustling urban centers of Vietnam, rooftop solar systems are indispensable. These systems help balance energy consumption and reduce electricity costs for consumers, particularly in densely populated areas. Urban households and businesses can significantly reduce their electricity bills and contribute to a greener environment by installing solar panels on rooftops.

Vietnam’s geographical diversity supports the widespread adoption of rooftop solar power systems. Solar panels can be installed efficiently across various terrains, including urban rooftops and coastal areas, making them a versatile renewable energy solution. This flexibility allows residential and commercial entities to harness solar energy effectively, regardless of location.

Vietnam’s journey toward a sustainable energy future highlights the critical role of rooftop solar. The government’s commitment to renewable energy project development positions rooftop installations as a cornerstone of the nation’s energy strategy, driving economic growth and environmental sustainability.

Government Policies Driving Rooftop Solar Power Adoption

Government policies have significantly driven the adoption of rooftop solar power in Vietnam. The aim is to achieve a solar power capacity of 20.6GW by 2030 as part of a broader renewable energy commitment. The National Power Development Plan and the Power Development Plan VIII (PDP8) support this goal by seeking to increase renewable energy to 30% by 2030, influencing market dynamics and attracting substantial investments.

A series of favorable government policies have been introduced to encourage the adoption of rooftop solar power systems. For instance, the introduction of feed-in tariffs has provided stable financial returns for investors, spurring the rapid expansion of the rooftop solar market. Additionally, Direct Power Purchasing Agreements (DPPA) are being rolled out to further bolster investment in the renewable energy sector. These initiatives have played a crucial role in elevating Vietnam’s rooftop solar capacity from a modest 28MW to over 9.3GWp between 2017 and 2020.

The government has issued a new decree to promote the use of solar energy. This decree simplifies regulations for homeowners and businesses who want to install rooftop solar panels for their own use. It eliminates the need for registration for systems that are not connected to the grid and allows homeowners to sell excess solar power back to the national grid, with a cap of 20% of the system’s capacity.

These measures simplify installation procedures and create favorable conditions for foreign investors, accelerating the growth of rooftop solar installations nationwide.

Key Players in Vietnam’s Rooftop Solar Market

The growth of Vietnam’s rooftop solar market can be attributed to the efforts of key players, both local and international. Among the prominent local companies are SolarBK, TTC Group, and Sao Mai Group, which have established themselves as leaders in the solar energy sector. These companies have been instrumental in developing and deploying rooftop solar power systems, thereby enhancing the nation’s renewable energy capacity.

International firms, such as SunPower and First Solar, have also made significant inroads into the Vietnamese market. By bringing advanced technology and expertise, these companies are partnering with local developers to navigate the regulatory landscape and drive the adoption of rooftop solar panels. These collaborations have proven to be mutually beneficial, combining local market knowledge with international technological prowess.

Companies that provide end-to-end solar installation services are essential to driving the growth of rooftop solar energy. These providers manage the entire process—from consultation and system design to installation and ongoing maintenance—making it easier for both homeowners and businesses to switch to solar power. By offering a complete solution, they not only encourage wider adoption but also help ensure that solar systems remain efficient and reliable over time.

Technological Advancements in Rooftop Solar Systems

Technological advancements drive the evolving rooftop solar market in Vietnam. Emerging technologies like next-generation solar panels and smart inverters are defining the growth and efficiency of installations. These innovations enhance system performance, making them more reliable and cost-effective for residential and commercial users.

As rooftop solar installations surge, energy storage is becoming increasingly crucial. To optimize the use of solar power, incentives for integrating battery storage with solar systems are likely to increase. Declining battery costs are making these solutions more affordable, enabling homeowners and businesses to store excess solar energy generated during the day for use during peak demand periods.

High irradiation levels in southern Vietnam have also significantly benefited rooftop solar installations. The optimal sunlight conditions in these regions make solar projects economically viable and highly efficient. This geographical advantage, combined with technological advancements, positions Vietnam as a promising market for rooftop solar power development.

Opportunities for Investment in Rooftop Solar Projects

Vietnam’s rooftop solar market presents significant investment potential, particularly with new legislation. Companies specializing in the installation and maintenance of residential and commercial solar systems are well-positioned for substantial growth as demand for solar energy continues to increase.

Investing in software for monitoring and optimizing solar energy usage is another promising area. As efficiency becomes a priority, technologies that enhance performance and reliability are expected to thrive. These software solutions enable real-time tracking and management of solar energy production, helping users maximize their return on investment.

Commercial and industrial consumers are looking to set up rooftop solar projects to reduce operating costs and enhance energy independence. By investing in solar energy, these entities can achieve significant savings on electricity bills while contributing to the green energy transition. This trend underscores the growing appeal of solar projects as a viable and sustainable investment option.

Challenges Facing the Rooftop Solar Market

Despite promising growth, Vietnam’s rooftop solar market faces several challenges. A primary issue is the lack of consumer awareness and understanding of solar technology. Many potential customers are unaware of the benefits and feasibility of rooftop solar power systems, hampering market penetration.

Regulatory framework issues also pose significant hurdles. Gaps in the implementation and enforcement of regulations can delay project timelines and create uncertainty for investors. Addressing these regulatory challenges is essential to fostering a more conducive environment for rooftop solar power development.

Integration with the national grid is another critical challenge. While rooftop solar systems are crucial for alleviating pressure on Vietnam’s national grid, particularly during peak energy demand, they also face integration challenges. Ensuring seamless connectivity and stability between rooftop solar installations and the grid is essential for maximizing the benefits of solar energy.

Future Outlook for Rooftop Solar Power Development

The future of rooftop solar power in Vietnam looks promising. The government’s commitment to renewable energy is evident in its goal to achieve a solar power capacity of 20.6GW by 2030. By 2050, the country aims to generate 52.1 – 291.5 billion kWh of electricity from solar sources, targeting households to utilize rooftop solar panels.

The ongoing urbanization trend is expected to drive demand for rooftop solar installations, especially in major cities like Hanoi and Ho Chi Minh City. As more people migrate to urban areas, the need for efficient and sustainable energy solutions will become important. Rooftop solar power systems offer a viable solution to meet this growing demand.

Advancements in solar panel efficiency and emerging technologies like perovskite solar cells and bifacial panels are set to further enhance the viability of rooftop solar projects. These innovations, coupled with improved battery technologies, will play a pivotal role in driving the future growth of Vietnam’s rooftop solar market.

How InCorp Vietnam Can Help?

InCorp Vietnam provides essential support to businesses and investors interested in tapping into Vietnam’s rapidly growing rooftop solar market. With expertise in local regulations, renewable energy policies, and investment procedures, InCorp Vietnam assists clients in navigating the complexities of entering this dynamic sector.

InCorp Vietnam is a leading provider of global market entry services. We are part of InCorp group, a regional leader in corporate solutions, that encompasses 8 countries in Asia-Pacific, headquartered in Singapore.