Vietnam raises solar feed-in tariffs with energy storage, regional incentives

Vietnam’s solar policy update highlights growing role of energy storage. (Photo: iStock)

Vietnam’s Ministry of Industry and Trade (MOIT) has announced a new round of feed-in tariffs (FIT) for solar power, introducing location-based pricing and, for the first time, incorporating energy storage systems.

The updated scheme highlights the growing importance of storage in stabilizing the grid and enhancing energy autonomy. However, some developers argue that despite the rate increases, the new tariffs may still fall short of spurring large-scale investment.

Energy storage included in Vietnam’s latest solar policy shift

Under the revised tariff framework, solar installations are categorized into ground-mounted and floating types, and are further segmented by region—North, Central, and South Vietnam.

Rates are adjusted based on factors such as solar resource availability, cost structure, and local grid demand. The inclusion of storage also affects pricing. The tariff breakdown is as follows:

Conditions for systems with storage include a minimum storage capacity of 10% of the solar plant’s installed capacity, a charge/discharge time of 2 hours, and at least 5% of total generation used for charging the storage system. Overall, projects with storage receive higher FIT rates.

Previously, Vietnam’s FiTs were relatively low. In January 2023, the top rate was NT$1.49/kWh for ground-mounted solar and NT$1.89/kWh for floating solar, with no regional or storage-based distinctions.

Revised feed-in tariffs draw mixed reactions from industry

Supa Waisayarat, Vietnam’s adversary consultant at Thailand’s Super Energy Corporation, noted that the new scheme supports the adoption of storage and provides developers and investors with more transparent pricing, which could encourage more power purchase agreements (PPAs) and improve financing confidence.

However, some industry players remain skeptical. They argue that the revised rates still lack the strength to trigger significant investment. With tariffs denominated in Vietnamese dong while financing often relies on USD, currency risks could undermine profitability. Delays in issuing renewable energy certificates (RECs) also remain a concern.

Beyond solar, MOIT also released new FIT rates for other power sources: hydropower has a cap of USD 0.043/kWh, while natural gas combined cycle (NGCC) thermal power plants are set at USD 0.12/kWh.

Source: Vietnam Energy Online