Solar Financial Support: 9 Million VND (đồng) Compares With Vietnam Solar Cost
House owners in Vietnam can now get financial support for rooftop solar energy installations, Ministry of Industry & Trade (MOIT) said on 25 July. Is solar energy profitable now? How much is the support compared to solar investment? Suntiki has the answers.
- House owners installing rooftop solar energy get:
- 3 million đồng/1 kWp
- Up to a maximum cap of 9 million đồng
- This financial support program runs from 2019 to 2021.
- The subsidy is about 10 – 15% for installations up to 5 kWp. For larger solar panel systems the subsidy proportion is less and therefore not attractive.
What is solar financial support in Vietnam?
MOIT officially launched the program to promote the development of rooftop solar power in Vietnam on 25 July 2019. It means that you can get financial support of 3 million đồng/ 1 kWp and up to 9 million đồng to install solar panels on rooftop. The program is for any house owner nation-wide but is only active until 2021.
How much do I actually save compared to the price of solar energy system?
We said cost of solar is on average 90 million đồng for a 5 kWp solar energy system in Vietnam all inclusive package from installers. Because it is 5 kWp, this solar package is eligible for 9 million đồng financial support (which is around 10% of the solar cost) and the lowered final cost is 81 million đồng in total.
A solar investment in 5 kWp system will normally break-even after 5 years. With financial support, the payback period will reduce to around 4 years which is great for house owners thinking about investing. However, for larger pv systems the financial support is smaller compared to the cost of solar panel system because there is a 9 million đồng cap on how much financial support a house owner can receive. Refer to below table to see how much your system is eligible for.
Table 4: Solar financial support by pv system size:
|System Size||Solar panel system cost||Subsidy||Percent|
Percent = 6m / 56m = 11%
23.200 đồng = 1 USD
How do you qualify for the solar financial support?
The process is automatic according to Mr. Dũng, Business Manager of Vietnam Electricity (EVN) who further says:
Any household who completes installation of rooftop solar power, signs power purchase agreement will receive immediate support. Apply to all households who install rooftop solar PV.
So all you need to do is to install the solar panel system and apply for EVN to install 2-way meter.
Has anyone received financial support yet? If not, when do we expect this? And how reliable is the promise of solar financial support?
EVN is currently setting up its monitoring software system to ensure financial support is provided expediously and the process is transparent. So house owners who consider to invest in solar can expect more announcement soon. For solar energy industry, announcements from MOIT and EVN have been quite reliable.
Furthermore, the program is backed by international banks and organisations such as German Reconstruction Bank (KfW), the World Bank, USAID and EU.
When is the latest I should install to not miss out on this opportunity?
The process of getting solar energy can take everything from 3 days to 2 months depending how much time you take to shop around to get the best deal. Once you have installed solar panels, it will take you an additional 1-2 weeks to get 2-way meter installed and EVN contract signed. So, to give yourself ample of time, the latest you should begin looking for solar energy is August 2021 if you want to qualify for the solar financial support which is only valid between 2019 to 2021.
Vietnam Solar Energy Policy Discussion:
The above program was approved by MOIT Decision No. 2023/QD-BCT (05 July 2019) and is lead by the Department of Electricity and Renewable Energy Authority (EREA) who had the kick-off workshop on 25 July. The English name for the program is “Rooftop Solar PV Promotion Program (RTS)”
The goal of the program is to have 100,000 rooftop solar energy systems (or about 1000 MWp) installed by end of 2025.
To put this goal in perspective, the total installed systems according to EVN July report was 9,314 rooftop installation (198 MWp) of which 204 were on power buildings and 7,550 were households with capacity 40.46 MWp.
This means Vietnam has almost reached 10% of its 2025 program rooftop solar energy target when counting number of rooftop (not its capacity).
Furthermore, we know from EVN’s official letter No.3832/EVN-KD that they intend to double the planned RTS by the end of 2019, which means we can expect 18,600 rooftop solar energy installations with capacity of 400 MWp, which is 20% of the 2025 target.
Other organisations involved in this solar energy policy:
- GET-FiT program = Global Energy Transfer Feed-in-tariffs for developing countries. The program is funded by the German Reconstruction Bank (KfW) with a total grant of 14.5 million euros.
- World Banks Energy Assistance Program,
- USAID Low Emission Energy Program (V-LEEP)
- EU and GIZ German Cooperation Organization.
- Viet Nam Energy Partnership Group:
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