Home News & Analysis Policy

Vietnam may cut FIT for large-scale PV up to 20%

Source:PV Men

Vietnam pledged in the Paris Agreement to achieve 20% of solar in the nation’s renewable energy mix by 2030. The country is well on the way to meet this target, having exceeded the 2025 goal of 4 GW of solar PV—set under its 2020–2030 plan for installed capacity—ahead of June 30*, 2019.

*June 30 is the deadline for the country’s first FIT scheme, which compensates PV projects at VDN 2156/kWh or USD 0.0935/kWh.

The sheer volume of PV capacity to be commissioned poses a challenge to the capacity of Vietnam’s grid and prompts Vietnam Electricity, the state-owned utility company, to adjust the feed-in-tariff (FIT) rate.

According to Vietnam’s Energy Conservation Center, the Ministry of Industry and Trade (MOIT) has recently proposed a draft proposal to cut the FIT by 20% for large-scale PV, meaning that the FIT level will be reduced to VND 1620/kWh (USD 0.0709/kWh) for ground-mounted PV and VND 1758/kWh (USD 0.0769/kWh) for floating PV, while maintaining the rate at VND 2156/kWh (USD 0.0935/kWh)** for rooftop PV. The government estimates that nearly 5 GW of PV had been installed nationwide under the expired FIT scheme. The VND–USD exchange rates here are presented in non-real time terms

**The VND–USD exchange rates here are presented in non-real time terms.

While higher tariffs are proposed for northern provinces where solar irradiation is lower to encourage solar adoption, the proposed FIT levels are meant to apply to all provinces of the nation.

Vietnem larfe-scale project

Graph: According to stats, Vietnam has deployed 5 GW of solar under old FIT scheme

Under the draft plan, the 20-year FIT levels exclude value-added tax, which is adjusted according to the VND–USD exchange rate. The new FITs would be applied to PV projects that are grid-connected between July 1, 2019, and December 31, 2021. Meanwhile, the old FIT rate of USD 0.0935/kWh is still applicable for projects under development in the province of Ninh Thuan until the end of 2021. On August 31, 2018, the first FIT policy, which was supposed to end on June 30, 2019, was extended for twelve months.

The MOIT’s draft plan for FIT does not cover rooftop PV because the FIT rates that span the period from July 1 this year to June 30, 2021 had been adjusted earlier in July under a program to promote rooftop PV. This program sets a target of bringing a cumulative 1 GW of rooftop PV online by the end of 2025.

191008_3_en_Vietnem rooftop PV FiT

With nationwide electricity demand growing by 10% each year, Vietnam needs to add an annual 3.5–4 GW of new generation capacity. It leverages the domestic PV industry and projects in pipeline to achieve its PV installation targets over the past years. If the draft plan for FIT reduction becomes a working one and gets implemented, it will encourage developers to bring large-scale projects online before the FIT rate is reduced.

Previous Go Back Next

欢迎您光临PV InfoLink网站(http://www.pvinfolink.com,以下简称“本网站”),请您详阅下方的本网站的使用条款、以保障双方权益,若使用本网站则表明您已知悉并完全接受这些条款。

§ 1 免责声明

本网站合法获取信息,并尽可能以可靠、准确、完整的信息为基础,但不保证本网站信息的绝对准确性和绝对完整性,亦不对任何人的市场操作、投资建议负任何责任。PV InfoLink保留随时补充、修订或更改有关信息的权利,但并不保证随时发布。

 § 2 版权声明

本网站中的商标、名称、版面设计、自有文章、图片、图表等内容之版权归PV InfoLink所有。对于内容中所含的版权和其他所有权声明,使用者应予以尊重并在其转载、副本中予以保留。如果网站内容无权利声明,并不代表本网站对其不享有权利,也不意味着本网站不主张权利,使用者应根据诚信原则尊重该内容的合法权益并进行合法使用。

§ 3 转载及链接

本网站出于促进业界同仁思想交流和研究探讨之目的,可能包含转载文章或连接到第三方网页上的链接。转载文章所阐述的观点只代表该作者自身观点,本网站转载并不代表赞成或反对其观点。另外,本网站对外部链接并不负审查义务,不担保其准确性及完整性。在收集原始素材时,PV InfoLink尽可能注明文章的作者和来源,如文章作者或版权所有者对此存有异议,并不希望本网站引用、转载,请联系我们,本网站将立即予以删除。

§ 4 拒绝提供担保




本使用条款之订立、修改、更新及最终解释权均属PV InfoLink所有。若您对于本使用条款或本网站有任何问题或建议,欢迎来信service@pvinfolink.com

Welcome to PV InfoLink website (http://www.pvinfolink.com, hereinafter referred to as “this website”). Please read this terms of use agreement carefully to protect the interests of both parties. By accessing this website, you know and fully agree with these terms.

§1 Disclaimer

Information on this website is legally obtained and is based on reliable, accurate, and complete information. But absolute accuracy and completeness is not guaranteed. We assume no responsibility for anyone’s market operation or investment advice. PV InfoLink reserves the right to add, revise, or alter website information anytime, but information will not be guaranteed to be published all the time. 

§2 Copyright statement

The copyright of trademark, name, website layout, articles, photos, charts, etc. on this website are the properties of PV InfoLink. For the copyright and other proprietary statement contained in the content, users should show the respect and cite sources when sharing the article. If the website has no copyright statement, it does not mean that its contents are not protected. Users should respect the legitimate rights for use based on the principle of integrity.

§3 Share and link

This website may share articles or put subcontractor’s link on this website for the purpose of facilitating peer exchange and research. The point of view for the shared article is author’s own point of view. This website does not represent in favor or against the author’s point of view. In addition, this website does not have an obligation to review external links and does not guarantee its accuracy and completeness. For the collection of original sources, we will try to cite the author and source as much as possible. If the author or copyright owner has any opinions and do not want this website to refer or share their content, please contact us. The article will be removed immediately. 

§4 Refuse to provide warranty

This website does not provide any express or implied warranties, including but not limited to commercial suitability, fitness for a particular purpose, and non-infringement of the rights of others.

This website is for reference only. Users should determine the immediacy and applicability of such information themselves and have to be responsible for any transaction or investment decisions made.

If users conduct trade transactions with other manufacturers through this website, only the user and the manufacturer have a contractual relationship. This website is not involved in it. If the product or service has any flaws or disputes, users will have to contact the contractor. This website will assume no responsibility for such matters.

The making, modification, renewal, and final interpretation of this Terms of Use are the properties of PV InfoLink. If you have any questions or suggestions regarding this Terms of Use or this website, please contact us at service@pvinfolink.com.


PV InfoLink的现货价格主要来自平时与业界的面谈、
但每周根据市场分为略有微调,且加上PV InfoLink专业分析群的市场预测。

PV InfoLink gathers price information from face-to-face/phone interviews and other ways of communication with more than 100 PV companies. We get our average price from the most common transactional data in the market (not weighted average), but prices are slightly adjusted every week according to market conditions. With PV InfoLink’s professional market forecast, we seek the fullness and completeness of the information, but this information is just for reference. We assume no responsibility for anyone’s market operation or investment advice.