Vietnam Plans To Introduce Subsidies For Household Solar-plus-storage Systems

 

Vietnam plans to introduce subsidies for household solar-plus-storage systems, offering investment support of up to 3 million VND and loans of up to 40 million VND without government guarantees.

 

The Ministry of Industry and Trade of Vietnam has proposed providing financial support for household solar-plus-storage systems. Households installing these systems for their own use could receive up to 3 million VND in investment funds or 40 million VND in preferential loans. The draft stipulates that household solar systems without energy storage could receive an investment subsidy of 1 million to 1.5 million VND per household, while adding energy storage systems could receive an additional subsidy of 1 million to 1.5 million VND. However, the minimum system configuration must be 1 kW of solar power and 2 kilowatt-hours of storage, and users must commit to at least three years of operation.

 

The preferential loan program allows households to apply for loans of up to 40 million VND at an annual interest rate of 8.4% for a 36-month term. The loan amount for photovoltaic systems will not exceed VND 4 million per kilowatt, with a maximum support capacity of 5 kilowatts. An additional VND 20 million loan amount will be allocated for energy storage systems, with a loan limit of VND 2 million per kilowatt-hour, up to 10 kilowatt-hours. Local power companies will provide technical guidance on installation and grid connection, while commune-level governments will be responsible for implementation and oversight.

 

The proposal also regulates the installation conditions for two-way meters and requires households to negotiate transaction terms with surplus electricity purchasers. According to Vietnam's electricity development strategy, 50% of office buildings and 50% of residential buildings will use self-generated rooftop photovoltaics by 2030. This plan aims to reduce grid load, ease pressure on national capital investment, and improve the efficiency of residential land use. The proposed mechanism is scheduled to take effect in early 2026 and last until the end of 2030. The draft has been submitted to the Ministry of Justice for review.

 

According to the International Renewable Energy Agency, Vietnam's cumulative installed photovoltaic capacity reached 18.66 GW by the end of 2024, with 79 MW added in 2024. In September 2024, the government introduced a new net metering policy for rooftop photovoltaics, limiting the proportion of surplus power connected to the grid to no more than 20%. In April of the same year, the new on-grid electricity price for centralized photovoltaic power stations was announced.