Vietnam rooftop solar: Essential 2024 growth is impressive
Vietnam is reigniting its rooftop solar market with decisive policy action in 2024, aiming to overcome recent stagnation and unlock immense potential for distributed energy generation. After a period of uncertainty that slowed development, new regulations are paving the way for significant expansion, positioning rooftop solar as a cornerstone of the nation’s energy security and decarbonization strategy.
The centerpiece of this renewed push is Decree 135/2024/ND-CP, a landmark policy that directly addresses the challenges faced by the commercial and industrial (C&I) sectors following a policy vacuum from 2021 to 2024. This decree formally enables rooftop solar installations for self-consumption, a critical step for businesses seeking to lower energy costs and improve their carbon footprint. According to Pham Dang An of Vu Phong Energy Group, the policy is a major catalyst, as it removes previous capacity limits for systems equipped with backflow prevention and eliminates cumbersome operating permit requirements, thereby streamlining the adoption process.
This new regulatory clarity is vital, given the market’s history. Vietnam experienced an explosive boom in rooftop solar capacity, growing from just 28 MW in 2017 to over 9.3 GWp by the end of 2020, largely driven by attractive feed-in tariffs. However, the expiration of these incentives without a clear successor policy led to investor uncertainty and stalled growth, particularly for larger C&I projects.
Despite the slowdown, the latent potential remains enormous. By the end of 2022, rooftop installations accounted for over 9,000 MW of the country’s total solar capacity. Furthermore, advanced analysis using machine learning has identified approximately 6.93 GW of existing rooftop capacity nationwide, with a significant 71% located on commercial and industrial buildings. This highlights a vast, untapped resource that the 2024 policies are designed to mobilize.
Looking ahead, the government’s strategy extends beyond self-consumption. Guidelines are also being developed to facilitate third-party energy sales through Direct Power Purchase Agreements (DPPA), a model expected to spur new projects, particularly in the energy-hungry northern provinces. By creating a stable and predictable policy environment, Vietnam is not only addressing immediate grid strain but also building a resilient, decentralized energy system to power its future economic growth.
Sources for Vietnam rooftop solar: Essential 2024 growth is impressive
- Developing Sustainable Rooftop PV in Vietnam
- Opportunities and Challenges in the Rooftop Solar Market in Vietnam
- Vietnam’s Decree 135/2024/ND-CP Boosts Rooftop Solar Power
- Challenges for rooftop solar systems in Vietnam in 2024
- Snapshot.VIET NAM – REN21
- Mapping Vietnam’s rooftop solar landscape with machine learning
