Vietnam Electric Power Group (EVN) said that in the past two years, only 1,800 homes have installed rooftop photovoltaic systems with a total installed capacity of 30 MW, which is a small figure compared to the potential installed capacity.
Since the policy of selling electricity to EVN is not clear, the initial investment is high and people are not willing to install a rooftop photovoltaic system. In addition, the power company cannot sign a contract with the family for ordering electricity because there is no provision for the payment method.
However, both the Ministry of Industry and Trade (MOIT) and EVN have vowed to develop solar energy, as this will help save money on transmission networks, including transmission lines and substations, and reduce the burden on the distribution network.
People from the Ministry of Industry and Trade's New Energy and Renewable Energy Department said that the government has issued Resolution No. 02 to answer the existing questions.
Of course, in order to see solar energy booming as expected, more incentives are needed.
Dinh Quang Tri, deputy general manager of EVN, said that the government has been asked to provide partial investment funds for families installing photovoltaic systems. He also proposed to establish a third-party investor mechanism, and requested the Ministry of Industry and Trade to issue a notice to amend the current regulations, paving the way for EVN and family signing.
So far, EVN has signed many agreements for home purchases, but there are no formal contracts.
Dinh Quang Tri also said that KfW has approved the provision of 14 million euros of solar development assistance to Vietnam. EVN is negotiating with KFW and seeking permission from the government to use the funds to stimulate the installation and use of rooftop photovoltaic systems.
If everything goes as planned, households installing rooftop PV systems will receive a subsidy of 2-6 million VND, depending on the installed capacity of the system.
In addition, the Ministry of Industry and Trade of Vietnam is drafting a policy to encourage rooftop photovoltaic power generation. It plans to set four price ranges for the purchase of photovoltaic power, which is applicable to four different regions.
The highest price of 2486VND/KWh will apply to the northern provinces of Vietnam (Zone 1) with a minimum price of 1803VND/KWh and will apply to Zone 4 (including Ninh Thuan, Binh Thuan and Khanh Hoa provinces). The current price is 2086VND/KWh, or equivalent to 9.35 cents/KWh.