Vietnam’s draft policy is considered to provide limited subsidies and loans for residential solar installations. (Photo: iStock)
To reduce strain on the national power grid, the Vietnamese government is set to introduce new legislation encouraging households to install rooftop solar systems for self-consumption.
However, experts argue that the Ministry of Industry and Trade (MOIT) must offer clearer guidelines to protect consumers and achieve meaningful outcomes. Some solar developers also warn that the current policy draft may lack sufficient incentives.
Vietnam pushes home solar with subsidies and loans
According to the draft, eligible households will receive subsidies based on installed capacity, up to VND 500,000 (about USD 19) per kilowatt-peak (kWp), capped at VND 2.5 million (about USD 95) per home. Those opting to include battery storage will also be eligible for preferential commercial loan rates.
Under the proposed scheme, household loans will be offered with a three-year repayment term. Based on short-term interest rates from the State Bank of Vietnam, the maximum loan per kilowatt-peak would be VND 7 million (around USD 267), with a total loan cap of VND 35 million (around USD 1,334) per household.
The program will be funded by provincial development budgets, and local People’s Committees must submit proposals aligned with regional demand. In addition to financial support, local power companies will provide technical assistance within five working days, guiding residents on grid connection, system control, monitoring, and safety.
For households interested in selling excess power to the national grid, local utilities will help install or replace bidirectional meters and finalize power purchase agreements.
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If users intend to sell excess electricity to the national grid, the local utilities can assist with installing a bidirectional meter. (Photo: EVN)
Reaction to the draft has been mixed. Ngo Tuan Kiet, Director of the Institute of Energy Technology at Hanoi University of Science and Technology, welcomed the government’s support for self-consumption, saying it could boost grid flexibility and reduce blackout risks. He noted it helps reduce strain on the national grid.
Ngo emphasized that solar irradiance is lower in northern Vietnam, and system installation costs are relatively higher. Thus, financial incentives could accelerate rooftop solar adoption in Hanoi. However, he urged EVN and MOIT to provide more comprehensive guidance, such as detailed installation procedures and panel quality standards, to reduce misleading advertising and protect consumers from poor-quality products.
Rooftop solar scheme faces mixed industry reaction
The level of subsidies and loan incentives has drawn criticism. Energy expert Dao Nhat Dinh said the proposed financial support is too limited to attract the average household.
He cited an example: a 20 kW rooftop system with a single-phase inverter can generate 600–650 kWh per month, requiring 45 square meters of roof space, and costs between VND 90 million and VND 100 million (USD 3,432–3,814). With battery storage included, the price rises to VND 260 million (around USD 9,920).
Dao noted that most households are not at home during the day, meaning batteries are essential for storing midday solar generation for evening use. However, he argued the current incentives don’t make storage viable—solar panel costs alone already exceed what most households can afford.
Bui Van Thinh, a renewable energy company director in Lam Dong province, said most household systems are small in scale and tend to require storage. He suggested that subsidies should be calculated as a percentage of total investment, rather than capped per kilowatt.
Tran Dinh Ba, a senior analyst at the Vietnam Economic Science Association, cautioned against household-scale storage due to cost and safety concerns. Instead of offering limited subsidies, he proposed that households be allowed to export more excess power to the grid during the day and offset their bills using a net metering mechanism. He believes it is a more effective way to scale rooftop solar adoption nationwide.
Source: VIR、Vietnam.vn
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