{"id":43144,"date":"2025-10-03T14:40:55","date_gmt":"2025-10-03T07:40:55","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=43144"},"modified":"2025-11-04T12:44:10","modified_gmt":"2025-11-04T05:44:10","slug":"vietnam-sets-new-rules-to-reward-clean-energy-producers","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/vietnam-sets-new-rules-to-reward-clean-energy-producers\/","title":{"rendered":"Vietnam sets new rules to reward clean energy producers"},"content":{"rendered":"

Vietnam\u2019s government has passed new regulations allowing homeowners and landlords to sell solar power back to the national grid for the first time, marking a further shift towards greener energy<\/p>\n

\"\"
Ho Chi Minh City is one of the most exposed cities in Asia to climate change. xuanhuongho\/Shutterstock<\/figcaption><\/figure>\n

Located in central Dien Binh province, a recent project installed by Quynh An Solar Power Installation illustrates the current trajectory of rooftop solar in Vietnam. Completed in August last year\u2014two months before the central government issued a landmark new decree on producing and selling rooftop solar power\u2014the project features a seven-kilowatt photovoltaic system, installed on the roof of a luxury villa and imported from China.<\/p>\n

Like many of the growing number of rooftop projects installed on roofs across Vietnam, it is primarily intended for onsite consumption. Promotional materials for the project do not mention selling excess electricity back to the grid, the unit price for which has yet to be agreed between the government and state utility EVN. However, recent reforms have made it legal to produce and sell solar power back to the national grid in Vietnam\u2014 mirroring legal changes in neighbouring China a decade ago that spurred its solar boom.<\/p>\n

The initiative marks a crucial step in Vietnam\u2019s broader energy overhaul. It is expected to influence demand from buyers and developers for residential and commercial buildings equipped with solar panels and photovoltaic systems.<\/p>\n

In April, the central government unveiled the latest version of its energy strategy\u2014 Power Development Plan 8\u2014which set a new target of 73 gigawatts of installed solar capacity by 2030. This represents a fivefold increase on its previous goal set just two years earlier. The upward revision appears to be motivated by Vietnam having already reached the original 2030 target, with total installed solar capacity hitting 18.6 gigawatts by the end of 2023, according to data from REN21, a group that monitors global renewable energy progress.<\/p>\n

\u201cThe speed of increase in solar has been outstanding since the first plants were installed in 2018,\u201d says Gavin Smith, director of Clean Energy Advisors, a consultancy focused on solar and other green energy solutions in Vietnam. \u201cSolar energy is abundantly available, equipment prices have dropped dramatically, and batteries and control systems have become more affordable and reliable.\u201d<\/p>\n

This introduces a new income stream, making solar panel investments more financially attractive. Decree 58 is expected to have significant and largely positive impacts on homeowners and property owners in Vietnam<\/p><\/blockquote>\n

A greater focus on renewables makes sense for a tropical country home to Southeast Asia\u2019s largest river delta\u2014the Mekong. Climate change is a pressing issue in Vietnam. In its recent global report on climate risk and other market drivers, published in June, Savills identified Vietnam as particularly vulnerable to flooding and other climate-related impacts. \u201cIn a global context, Ho Chi Minh City is one of the most exposed cities to climate change,\u201d says Troy Griffiths, deputy managing director of Savills Vietnam. \u201cAs an extension of the Mekong Delta, it regularly experiences flooding from tidal surges and heavy monsoon rains.\u201d<\/p>\n

Vietnam\u2019s pivot to renewables is also driven by local concerns over energy supply and fast-rising demand, Smith notes. In 2019, EVN began importing more gas and coal to keep pace with rising consumption, leaving the national utility exposed to volatile global energy prices. He adds that the cost of solar power in Vietnam is currently around 20 percent lower than grid-supplied electricity from EVN.<\/p>\n

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Recent reforms have made it legal to produce and sell solar power back to the national grid in Vietnam. AndreNery\/Shutterstock<\/figcaption><\/figure>\n

New rooftop solar legislation promises cleaner and more affordable electricity for Vietnam\u2019s fast-growing economy\u2014 GDP is forecast to grow by nearly seven percent this year, according to the World Bank. But despite the legislative progress, crucial pricing details for selling solar power back to the grid remain unresolved, says Vu Thanh Minh, head of the Hanoi office at law firm LNT & Partners. After issuing initial regulations to promote rooftop solar in October 2024, the government passed a replacement decree in March this year\u2014Decree 58\u2014which, for the first time, stipulated that building owners would receive financial compensation.<\/p>\n

\u201cThis introduces a new income stream, making solar panel investments more financially attractive,\u201d says Vu. \u201cDecree 58 is expected to have significant and largely positive impacts on homeowners and property owners in Vietnam.\u201d<\/p>\n

For developers, investors, and homeowners, the new regulations provide the first legal framework for rooftop solar in Vietnam following years of ambiguity. Since 2018, the uptake of rooftop solar\u2014 particularly for commercial and industrial use\u2014\u201d has been enormous,\u201d says Smith. He adds that the reforms reflect efforts by the government \u201cto catch up with the conditions on the ground, where every form of investment in solar has been rapidly taken up and executed.\u201d<\/p>\n

Although pricing mechanisms remain pending, the clearer legal framework has already sparked foreign investor interest. Just days after the government affirmed building owners\u2019 rights to sell electricity back to EVN, Thailand\u2019s Banpu Next and Vietnam\u2019s SolarBK signed a joint venture agreement to install at least 390 megawatts of rooftop solar power across the country.<\/p>\n

Despite the lack of clarity around EVN\u2019s plans to purchase solar power, the future of solar in Vietnam looks bright, says Smith. \u201cSolar costs are stable and predictable, and the cost-benefit of installing it in domestic or commercial buildings is very clear.\u201d<\/p>\n

T<\/em>his article was originally published on\u00a0asiarealestatesummit.com<\/a>. Write to our editors at\u00a0propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Vietnam\u2019s government has passed new regulations allowing homeowners and landlords to sell solar power back to the national grid for the first time<\/p>\n","protected":false},"author":9,"featured_media":43147,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[97,92],"tags":[135],"class_list":["post-43144","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-magazine","category-news","tag-vietnam","news_country-vietnam","news_author-steve-finch"],"acf":[],"yoast_head":"\nVietnam sets new rules to reward clean energy producers | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.asiapropertyawards.com\/en\/vietnam-sets-new-rules-to-reward-clean-energy-producers\/\" 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