Vietnam Solar Rooftop and Energy Leasing Market

Vietnam Solar Rooftop and Energy Leasing Market valued at USD 740 million, driven by renewable demand, government policies, and urban installations in key cities like Ho Chi Minh City.

The Vietnam Solar Rooftop and Energy Leasing Market is valued at USD 740 million, based on a five-year historical analysis. Growth is primarily driven by the rising demand for renewable energy sources, favorable government policies, and escalating electricity costs. The market has seen a marked increase in rooftop solar installations, especially in urban areas, as both residential and commercial consumers pursue sustainable energy solutions and cost savings.

Key cities such as Ho Chi Minh City, Hanoi, and Da Nang continue to dominate the market due to their high population density and robust industrial activity. These urban centers have attracted substantial investments in solar energy infrastructure, supported by local government initiatives focused on promoting clean energy adoption and reducing carbon emissions.

In September 2024, the Ministry of Industry and Trade (MoIT) released a draft decree introducing a net-metering scheme for rooftop solar PV installations. This regulation allows self-consumption of solar energy and permits surplus electricity to be fed back into the grid up to 20% of total generation, with operational compliance required for grid safety. The policy aims to incentivize investment in rooftop solar and accelerate Vietnam’s transition to sustainable energy.

Vietnam Solar Rooftop and Energy Leasing Market Segmentation

By Type:

The market is segmented into residential, commercial, and industrial rooftop solar PV installations. Residential rooftop solar PV systems are gaining momentum due to increased consumer awareness, attractive government incentives, and the desire for energy independence. Commercial and industrial systems are significant contributors, driven by the need for reliable and cost-effective energy solutions. Solar leasing and power purchase agreements (PPAs) are emerging as popular financing models, enabling users to adopt solar technology with minimal upfront investment. Community and shared solar projects, as well as floating solar installations, are also expanding, reflecting Vietnam’s innovative approach to maximizing solar adoption.

By End-User:

The end-user segmentation comprises households, commercial enterprises, industrial facilities, and government buildings. Households represent the largest segment, driven by rising electricity costs and a growing preference for energy independence. Commercial enterprises are significant adopters, seeking to reduce operational expenses and enhance sustainability. Industrial facilities are increasingly implementing solar solutions to meet environmental targets, while government buildings are required to integrate renewable energy practices as part of national energy security and sustainability mandates.

Vietnam Solar Rooftop and Energy Leasing Market Competitive Landscape

The Vietnam Solar Rooftop and Energy Leasing Market is characterized by a dynamic mix of regional and international players. Leading participants such as SolarBK, Trung Nam Group, BCG Energy, TTP Energy, GreenYellow Vietnam, EVN (Electricity of Vietnam), Sunseap Group, Vietnam Sunergy Joint Stock Company (VSUN), Sharp Energy Solutions Corporation, JinkoSolar, Hanwha Q CELLS, Trina Solar, Canadian Solar, SMA Solar Technology, LONGi Solar, Risen Energy, Song Giang Solar Power Joint Stock Company, Berkeley Energy Commercial & Industrial Solutions, Tata Power Solar Systems Ltd. contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Solar Rooftop and Energy Leasing Market Industry Analysis

Growth Drivers

Increasing Energy Demand:

Vietnam's energy consumption has surged, reaching approximately 250 billion kWh in future, with projections indicating a rise to 300 billion kWh in future. This escalating demand is driven by rapid urbanization and industrial growth, particularly in cities like Ho Chi Minh City and Hanoi. The government aims to meet this demand through renewable sources, with solar energy expected to contribute significantly, targeting 20% of total energy generation in future, thus fostering a robust market for solar rooftop installations.

Government Incentives for Renewable Energy:

The Vietnamese government has implemented various incentives to promote renewable energy, including a feed-in tariff of 2,000 VND per kWh for solar energy, which has attracted significant investments. In future, the government allocated approximately $1 billion for renewable energy projects, aiming to increase solar capacity to 20 GW in future. These initiatives not only enhance the financial viability of solar rooftop systems but also encourage widespread adoption among residential and commercial sectors.

Technological Advancements in Solar Energy:

The solar energy sector in Vietnam is witnessing rapid technological advancements, particularly in photovoltaic (PV) efficiency and energy storage solutions. In future, the average efficiency of solar panels reached 20%, with projections indicating further improvements. Additionally, the cost of solar technology has decreased by approximately 30% over the past five years, making solar rooftop installations more accessible. These advancements are crucial in driving market growth and enhancing the overall appeal of solar energy solutions.

Market Challenges

High Initial Investment Costs:

Despite the long-term savings associated with solar energy, the initial investment for solar rooftop systems remains a significant barrier. The average cost of installation ranges from $1,200 to $1,500 per kW, which can be prohibitive for many households and small businesses. In future, only 5% of residential properties had adopted solar solutions, indicating that high upfront costs deter broader market penetration and adoption, limiting the potential growth of the sector.

Regulatory Uncertainties:

The regulatory landscape for solar energy in Vietnam is characterized by frequent changes and uncertainties, which can hinder investment. In future, the Ministry of Industry and Trade proposed revisions to existing policies, creating confusion among investors. This unpredictability can lead to delays in project approvals and discourage potential stakeholders from entering the market. A stable regulatory framework is essential for fostering investor confidence and ensuring sustainable growth in the solar rooftop sector.

Vietnam Solar Rooftop and Energy Leasing Market Future Outlook

The future of the Vietnam solar rooftop and energy leasing market appears promising, driven by increasing energy demands and supportive government policies. As urban areas expand, the need for sustainable energy solutions will intensify, prompting further investments in solar technologies. Additionally, advancements in energy storage and smart grid technologies will enhance the efficiency and reliability of solar systems. With a focus on sustainability, businesses are likely to adopt solar solutions, contributing to a greener energy landscape in Vietnam.

Market Opportunities

Expansion of Urban Areas:

The rapid urbanization in Vietnam, with urban populations projected to reach 50% in future, presents a significant opportunity for solar rooftop installations. As new residential and commercial buildings emerge, integrating solar solutions can meet energy needs sustainably, driving market growth and enhancing energy independence.

Development of Energy Storage Solutions:

The growing demand for reliable energy sources has spurred interest in energy storage technologies. With the energy storage market expected to grow to $1.5 billion in future, integrating storage solutions with solar rooftops can enhance energy reliability and efficiency, creating a lucrative opportunity for market players.