Solar Panel Installation Costs in Vietnam for 2025: Opportunities and Challenges

In 2025, the cost of solar energy installation in Vietnam varies widely by capacity and installation conditions, from homes to large enterprises.

Installation Costs by System Capacity

The installation cost of home solar systems in Vietnam depends on the system capacity, ranging from 35 to 150 million VND based on kWh. A 3 kWp system can produce 360-400 kWh/month, costing around 35–45 million VND, while a 10 kWp system generates 1,200 kWh/month, priced between 90 and 150 million VND. For businesses, solar installation is more cost-effective, ranging from 8 to 10 million VND/kWp for systems below or above 100 kWp.

Cost by Solar System Capacity

The primary factor in solar installation cost is the system capacity chosen. With average costs from 10 to 25 million VND/kW, solar energy systems are optimized for both efficiency and installation space.

Here is a reference price list for several common capacities:

• 3 kWp System: Costs 35 – 45 million VND, produces 360 kWh/month, needs about 18 m² of roof space.
• 5 kWp System: Costs 55 – 65 million VND, produces 550-600 kWh/month, requires 25-30 m² of roof space.
• 8 kWp System: Costs 80 – 90 million VND, generates 960 kWh/month, needs about 40 m².
• 10 kWp System: Priced at 90 – 100 million VND, produces 1200 kWh/month, needs around 50 m².
• 15 kWp System: Between 135 – 145 million VND, delivers 1800 kWh/month, requires 75 m².

Factors Influencing Installation Costs

Key factors influencing solar installation costs include:

• System Type: Choice between on-grid, off-grid, or hybrid systems.
• System Size: Larger capacities have lower per kWp costs due to economies of scale.
• Location and Roof Area: Minimum requirement from 6-8 m² per kWp.
• Equipment Quality: High-performance solar panels typically cost more.
• Construction Costs: Depend on site conditions and installation techniques.

Efficiency and Economic Value

A 1 kW solar power system can generate around 4-5 kWh per day, varying by region and light conditions. With EVN’s rooftop solar purchase price estimated at 1,940 VND/kWh, the cost benefits are apparent for households with monthly electricity costs over 1.5 million VND.

Factors Affecting Solar Costs

Numerous factors influence the cost of solar energy systems, including installation location, roof structure, product type, and solar panel technology. Generally, 6-8 m² is required per kWp. Higher quality and technology lead to increased costs but offer better efficiency and durability.

Understanding solar energy pricing necessitates considering several important cost-influencing factors.

1. System Scale and Capacity

• System Capacity: Higher capacity results in larger initial costs but increases electricity generation capability, providing long-term benefits.
• System Size: Larger systems require higher investment but deliver greater energy savings over time.

2. Component Quality

• Solar Panels: Type and quality significantly affect cost and performance. High-quality panels from ABB and Schneider offer superior efficiency and lifespan.
• Inverters and Hardware: Components like inverters from LS and Eaton, though expensive, ensure system reliability and durability.

3. Location and Installation Conditions

• Geographical Location: Climate and sunlight conditions at the location affect performance and costs.
• Roof Structure: Roof structure impacts installation convenience and cost.

4. Government Policies and Regulations

• Support Policies: FIT prices and support policies can enhance investment viability.
• Planning and Price Framework: National electricity planning and pricing influence investment decisions.

5. Market and Global Economic Situation

• Raw Material Costs: Raw material supply challenges increase production costs.
• International Tax and Trade Policies: Tariffs and trade policies impact equipment import costs.

6. Social Demand and Consumer Trends

• Environmental Protection Perspective: Interest in environmental protection boosts demand for solar energy.
• Sustainable Consumption Trends: Shift to clean energy promotes development of solar panel technology.

Solar energy costs are not simply a matter of price but are influenced by a combination of factors, including capacity, technology, installation location, and system performance.

Government Support Policies

The Vietnamese government is proposing financial support for rooftop solar systems, up to 500,000 VND per kWp but not exceeding 2.5 million VND per household. This policy helps reduce actual installation costs, encouraging households and businesses to invest in renewable energy.

Vietnam’s government is implementing support policies to benefit businesses, particularly SMEs, in remote areas, and social-impact entities. With renewable energy development, short and medium-term solutions are outlined to address legal obstacles, reduce enterprise costs, and enhance access to state-supported preferential funds, especially in green investment.

• Short-term: Focus on resolving legal challenges to enhance business operations, provide financial support, and ensure a continuous supply chain. Additionally, focus on training and enhancing workers’ skills to stabilize employment.
• Medium- and Long-term: The government pushes to improve the investment environment, drive digital transformation, and restructure labor to improve human resource quality in the context of Industry 4.0. These policies also boost competitiveness for businesses during international integration.

Regarding financial support, a 2%/year preferential interest rate policy has been applied for private enterprises and individuals investing in green projects. This not only helps save costs but also encourages adherence to ESG standards in business operations. Detailed guidance from the State Bank and Ministry of Finance will ensure effective implementation of this policy by 2025.

Newly issued decrees also significantly contribute to the development of supporting industries like Decrees No. 188/2025/ND-CP, 205/2025/ND-CP, and 200/2025/ND-CP. These documents detail beneficiaries, health insurance contributions, and distribution of relief resources to improve disaster response and sustainable development.

Currently, with government support policies, Vietnam is creating a favorable environment for businesses to grow, overcome challenges, and achieve sustainable development.

Investing in solar energy offers numerous benefits, from reducing operational costs to enjoying government incentives. With technological advancements, solar energy systems are not only a sustainable step forward but also a cost-effective long-term solution.

Contact QuangAnhCons at Hotline: +84 9 1975 8191 for advisory and to select the most suitable solar energy solution for your needs.

QuangAnhCons specializes in providing and installing high-quality solar energy systems, offering flexible capacity options and professional after-sales service.