Rooftop solar power to have new price mechanism this month

Hanoi (VNA) - The Ministry of Industry and Trade (MoIT) will issue a new price mechanism for rooftop solar power this month, with prices likely to fall to below 6 US cents per kWh, according to Hoang Tien Dung, Director of the ministry’s Electricity and Renewable Energy Department.

Rooftop solar power will fetch only 5.2-5.8 US cents per kWh, depending on each project, Dung told the media.

The new rates have been calculated based on an assessment by foreign consultants on the changes to and development of renewable energy and the price of solar power equipment in Vietnam and around the world, he said.

 Dung added that an estimate of various costs, such as those for initial investment, operations and maintenance, installation, and connection were also taken into account.

The lower price is partly owing to a sharp decline in solar power equipment prices in the recent time.

Solar panels are now far more efficient, allowing more electricity to be produced than previously, he noted, adding that this will be beneficial to investors while the government can take advantage of the increasing supply of clean energy at affordable prices and the falling level of investment required to develop national electricity networks.

He went on to say that, for end-users, the new rates will be much lower than those of Vietnam Electricity (EVN). People and businesses will be encouraged to install rooftop solar panels for their own use, instead of selling all power generated to the national grid to enjoy high returns, he said.

Vietnam expects to produce 25,000-26,000 MW of solar power by 2030./.