Vietnam solar PV market is expected to cross $ 3.7 billion by 2025. Continuously growing electricity demand from C&I and residential sector, favorable Feed-in-Tariffs (FiT) and rising government concerns towards greenhouse emissions to drive Vietnam solar photovoltaics equipment through 2025.
Electricity demand in Vietnam has grown by around 30% since 2000 and is expected to continue growing through 2030. During 2020-2025, the country’s solar photovoltaic equipment market is anticipated to witness robust growth on account of increasing investments on solar projects and government focus on reducing carbon emissions in the country.
In 2019, Vietnam solar photovoltaic equipment market is dominated by polycrystalline type of module due to its cheap price. However, monocrystalline type of module is forecast to grow at a high CAGR through 2025 on account of higher efficiency in solar systems for energy generation. Over the last few years, the government has taken various initiatives in the solar power sector such as upgradation of power development plan, introduced net metering scheme for solar rooftop projects, and revised FiT for solar projects. The government is now considering moving from FIT to a competitive bidding scheme for solar projects that would increase the installed capacity and create thousands of new jobs in Vietnam. In 2017, the government introduced FiT of $ 9.35 cents/kWh, which generated interest in solar projects, majorly in the southern regions of Vietnam. In 2019, the government revised the FiT, varying from $ 6.67-10.87 cents/kWh, dependent on solar power technology and region of deployment. As a result, cumulative solar capacity of the country reached 5.5 GW in 2019 from 237 MW in 2018.
A brief study of the major players operating in Vietnam solar photovoltaic equipment market was conducted, which included the analysis of information such as ongoing projects, followed by the details of expected year of commissioning and estimated investments along with the expansion plans of various projects in the country. Moreover, detailed and in-depth scrutiny of information was done to understand each policy or external or internal factor which could increase or decrease the demand for solar power in Vietnam.