Solar power panels are installed on the rooftops of households in Hanoi (Source: VNA) HCM City (VNS/VNA) — Luc Van Tan, a HCM City resident, isconsidering installing solar power panels on his 35sq.m rooftop to save onelectricity bills.
But the initial investment for the panels has made Tan think twice.
It costs between 25 million VND (1,070 USD) and 30 million VND (1,280 USD)for each 10sq.m panel. That means Tan would have to spend about 90 million VND (3,840USD).
In spite of the long-term profits solar power brings, many familieshesitate to install the panels due to the cost.
It is estimated that it takes just five years to recoup the investment butnot all families can afford the initial outlay.
Tran Dinh Nhan, General Director of the Electricity of Vietnam (EVN),said: “There are no loans available to support people willing to use solarpowers, which prevent households from accessing the renewable energy source.”
Two years after home solar systems were launched, only 1,800 customersincluding offices, businesses and households had so far invested in rooftoppanels, according to the EVN.
“The power generated is below the country’s solar energy potential,” Nhansaid.
Solar panels not only help people to cover their domestic electricitydemands but also contribute to the national power grid.
The EVN has said it would install electricity meters in houses to measureextra rooftop solar power and buy from customers who were willing to sell.
However, this preferential policy has been held back by latelegislation. EVN had been unable to sign contracts with customers becausethere were no instructions regarding payment methods, Nhan said.
The corporation has asked the Government to offer financial incentives andcall on investors to support home solar system. The country’s largest powergenerator is also working with theGerman Development Bank KfW and has asked the Government to usethe bank’s solar power development package worth 14 million EUR to support homerooftop solar panels.
According to the EVN representative, if approved, each household wouldreceive from 2 million VND (85 USD) to 6 million VND (255 USD), depending onpanel capacity, for the installation. The assistance was only a small packagebut would encourage more families to install panels.
Many customers complained that they did not know which panels toinstall or how to maintain them.
The EVN was considering high-quality solar panel suppliers and wouldpublish list of qualified companies on the corporation’s website as a reliablereference source for customers, Nhan said.
Vietnam’s annual power consumption has increased by 10 percent in recent years,and the country is at risk of facing power shortages in the 2020s. According toenvironmental experts, renewable energy like solar would play a vital role inhelping Vietnam accomplish its long-term goal of hooking up the whole countryto the national grid.
Cao Quoc Hung, Deputy Minister of Industry and Trade, said at a renewableenergy workshop this week Vietnam had witnessed a ‘wave’ of local andinternational investment in renewable energy thanks to consistent policies andsupport mechanisms.
As of the end of last year, about 10,000MW of solar energy had been generatedby large solar projects. More than 100 power purchase agreements were signedwith two of them with total capacity of 86MW.
According to renewable energy researchers, the country’s solar system hadhuge potential to reach 35,000MW by 2030.
Vietnam has focused its solar power development on both home rooftopsystems and large projects invested by domestic and foreign investors.
The Government has applied favourable feed-in tariff incentives orrenewable energy payments for solar power since 2017 in an attempt toaccelerate investment in renewable energy. The fixed solar power price is setat 2,086 VND (0.08 USD).
Phuong Hoang Kim, head of the Electricity and Renewable Energy Department ofMinistry of Industry and Trade told Thanh nien (Young People) newspaper theincentives had boosted the solar energy market.
However, the prices for solar power are fixed regardless of the amount ofsunlight different areas receive, resulting in less interest in cooler areas.
The Ministry of Industry and Trade is drafting new prices for solar energybased on geographical zones and opening the floor for feedback.
Kim said that the proposed price change aimed to stabilise the number ofsolar energy projects based on the rule that low prices should be applied insunnier areas so investors could still profit if they invested in areas withlow levels of sunshine.-VNS/VNA
VNA
