Solar Energy Costs in Vietnam 2025: Pricing Framework and Policy Trends

In 2025, solar energy costs in Vietnam are clearly outlined by the Ministry of Industry and Trade’s policy decisions. Factors like regional pricing frameworks and plant types, along with the policy shift from a FIT mechanism to competitive bidding, play crucial roles in guiding these costs amid the dynamic energy market.

2025 Solar Pricing Framework

The 2025 solar pricing framework under Decision 988/QD-BCT of the Ministry of Industry and Trade is categorized by plant type and geographic region. Prices exclude VAT and reflect variance in solar potential and operational costs across regions. Higher prices incentivize solar developments with storage systems to optimize resource use effectively.

Decision 988/QD-BCT, issued by the Ministry on April 16, 2025, introduces a new solar generation pricing framework in Vietnam. This change affects both traditional and floating solar systems, including those with and without storage solutions.

To gain deeper insight, we must consider each aspect of solar pricing carefully.

• Non-Storage Ground Solar:

• Northern Region: 1,382.7 VND/kWh

• Central Region: 1,107.1 VND/kWh

• Southern Region: 1,012.0 VND/kWh

• Non-Storage Floating Solar:

• Northern Region: 1,685.8 VND/kWh

• Central Region: 1,336.1 VND/kWh

• Southern Region: 1,228.2 VND/kWh

Differential pricing across regions highlights the variations in renewable energy potential and operational costs, notably in floating solar in the North, which involves more geographical and solar radiation challenges.

Storage Systems

Another critical aspect of the 2025 pricing framework is the encouragement of storage system integration. This not only enhances power stability but also optimizes economic efficiency. Specific requirements for storage systems include:

• Capacity: At least 10% of the solar plant’s capacity.
• Storage/Discharge Time: Minimum of 2 hours.
• Electricity Charge Ratio: 5% of the plant’s total output.

With this push, storage systems from renowned brands like Schneider and ABB may become indispensable in new solar projects, enhancing effective power balancing.

In summary, the 2025 solar pricing framework represents a significant step forward in managing and developing sustainable renewable energy resources, motivating investors to integrate storage technologies for optimized profitability and power stability.

Policy Trends and Impact on Solar Costs 2025

2025 marks a pivotal shift as Vietnam transitions from FIT pricing to competitive bidding for solar projects. This evolution not only fosters transparency among contractors but also optimizes investment and operational costs. Notably, tax incentives and transmission fee reductions continue driving high-efficiency projects with markedly reduced investment costs.

Key governmental decrees brought foundational shifts in 2025 solar energy policy impacts, particularly with Decree 58/2025/ND-CP strongly supporting rooftop solar, enabling surplus electricity sales back to the grid, along with financial and land incentives.

Legal Framework and Support Policies

• Decree 56/2025/ND-CP details energy market planning, enhancing transparency and efficiency via **Energy market regulations**.
• Electricity Plan VIII with Decision 500/QD-TTg promotes refined management of solar investments, focusing on improving legal aspects pertinent to investment processes.

Surplus Electricity and Production Regulations

With new **solar energy regulations**, households and businesses owning systems below 100 kW may sell up to 20% surplus electricity, promoting efficient energy exploitation and commercialization.

Solar Pricing with Storage Incentives

According to the Ministry of Industry and Trade, the 2025 solar pricing with storage can reach up to 1,875 VND/kWh, higher than traditional solar. This unveils new **Sustainable energy incentives** with the stability and versatility of renewable sources.

Impact on Solar Costs

• Financial incentives and land cost reductions significantly reduce initial investment costs.
• **Renewable energy policies** allow surplus sales, boosting revenue and cutting production costs, encouraging storage investment.
• Clarified energy development and investment processes save unnecessary costs, enhancing solar investment effectiveness.

Sustainable Development Directions

This policy prioritizes integrating solar within carbon emission reduction and Net Zero goals, aligning with global trends and placing Vietnam on the clean energy map.

Investment Costs for Solar System Installation

The investment for solar system installation remains stable, estimated at 13-15 million VND for a 100 kWp system. Costs may fluctuate based on panel type, storage features, and varied regional technical demands. Pricing policy and tax incentives relieve financial pressure, encouraging more rooftop solar installations, offering economic and environmental benefits.

Considering solar energy investment, solar rooftop systems are gradually becoming an optimal choice for homes and businesses in Vietnam. Here are the investment details based on typical capacities.

1. **Cost by Capacity for Rooftop Solar Systems**
   – **3 kWp**: Price about 35 – 58 million VND, with 7 to 9 panels, generating around 360 kWh monthly.
   – **5 kWp**: Price range 50 – 85 million VND with 12 panels, producing 600 kWh monthly.
   – **10 kWp**: Costs between 95 – 150 million VND with 23 panels, generating about 1,200 kWh.
   – **15 kWp**: Cost approximately 135 – 145 million VND with 34 panels, a capacity of 1,800 kWh monthly.
   – **20 kWp**: Ranges from 160 – 240 million VND, suitable for larger farms or businesses.
   Sales prices include equipment, installation, and rack systems, excluding VAT and maintenance fees.
2. **Cost per kWp**
   – Solar costs average from 10-20 million VND/kWp, depending on system type (grid-tied or storage) and equipment quality.
3. **Components of Cost Structure**
   A solar system typically includes:
   • Solar panels: Major cost, with mono, poly, and multi-crystalline types.
   • Inverter: Converts DC to AC electricity.
   • Support structures: Fix panels on roofs or ground.
   • Electrical cabinet and cables: Protection and connectivity systems.
   • Construction, transportation, installation costs.
4. **Maintenance and Operation Costs**
   – Solar systems incur low maintenance costs, estimated at about 1 million VND annually for regular cleaning and inspection.
5. **Factors Influencing Costs**
   Factors affecting solar costs include:
   • Component quality and brand: Brands like Mitsubishi, ABB, or Schneider may be costlier.
   • Installation location: Terrain and infrastructure affect construction costs.
   • System type: Storage systems cost more than grid-tied systems.
   • System scale: Larger capacities lower per kWp cost due to scale economies.
6. **Efficiency and Energy Yield**
   – A 1 kWp system can generate 4-5 kWh/day, enough for basic needs of a small household.

Investment costs for solar systems range from 35 million to 240 million VND for systems from 3 kWp to 20 kWp, influenced by factors like capacity, equipment quality, and system type. This is an optimal solution for effective renewable energy usage in Vietnam.

New solar energy cost regulations for 2025 provide a clear price framework and encourage storage technology development, while tax incentives maximize investment benefits. Policy changes are poised to enhance project efficiency and provide sustainable returns for businesses and consumers.

Contact QuangAnhcons for detailed solar investment consultations at the hotline: +84 9 1975 8191.

QuangAnhcons specializes in installations, consulting, and implementing solar projects under the latest regulations, helping clients maximize government incentives.