Vietnam’s Ministry of Industry and Trade is proposing a set of financial mechanisms to support the deployment of residential solar and storage installations designed for self-consumption.
The ministry’s draft amendment sets out plans to offer households VDN 1 million ($37.97) to VDN 1.5 million in investment capital for home solar systems without battery storage. An additional VDN 1 to 1.5 million will be available if an electricity storage system is also installed, as long as the minimum capacity of the system is 1 kW of solar and 2 kWh of storage.
The household must commit to using the system for at least three years to be eligible for the direct support.
The proposal also includes plans for preferential loans, allowing households to borrow up to VDN 40 million at an interest rate of 8.4% per year and a loan term of 36 months.
From this VDN 40 million figure, up to half is available for the installation of solar systems, with the loan limit standing at VDN 4 million/1 kW, applicable to systems up to 5 kW in capacity.
The other VDN 20 million is available for electricity storage system installations, with a loan limit of VDN 2 million/1 kWh of storage capacity up to an available 10 kWh, on top of the loan for the solar system.
The ministry says local power units will provide technical guidance on installations and electrification connections, while local authorities at the commune level providing guidance on implementation.
The draft proposals also set out conditions for installations of two-way electricity meters, stipulating that households would negotiate with the excess electricity buyer.
However, Vietnam’s main target remains to increase the number of home solar and storage installations used for self-consumption. The country’s Electricity Development Strategy sets a target of having 50% of office buildings and 50% of residential houses using self-produced and self-consumed rooftop solar power by the end of the decade.
A statement from the ministry has highlighted the goal as a way of reducing the load on local power grids and the national transmission system, reducing investment pressure from state capital and increasing the efficiency of residential land use.
According to the ministry’s draft amendment, the proposed financial mechanisms would take effect from the beginning of 2026 and run to the end of 2030. The draft proposal has been sent to Vietnam’s Ministry of Justice for further review.
According to the International Renewable Energy Agency (IRENA), Vietnam's cumulative solar capacity stood at 18.66 GW by the end of last year, with around 79 MW added in 2024.
The majority of the country's installed solar was deployed through an expired feed-in tariff scheme that supported small-scale and utility-scale installations. In September 2024, the government announced a new net-metering scheme for rooftop solar, limiting the sale of excess electricity to the grid to 20%, and in April, published new feed-in tariffs for utility-scale solar plants.
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