Policy Snapshot

Vietnam Solar Policy Snapshot

The regulatory landscape for solar energy in Vietnam as of early 2025 — current mechanisms, recent changes, and what's next for developers and investors.

Last updated: March 2025

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Current status

Feed-in tariff

Expired (FiT 2 ended Dec 2020)

The 7.09 USc/kWh FiT for ground-mounted and 8.38 USc/kWh for rooftop expired. No direct FiT successor has been enacted.

Current mechanism

Transitional — Direct PPA pilot

Decision 80/2024/QD-TTg authorizes a direct power purchase agreement (DPPA) pilot for large consumers (>200 kV). Competitive auctions for utility-scale projects are under development.

Rooftop solar

Net metering suspended, self-consumption allowed

New rooftop installations can self-consume but cannot sell surplus to EVN at a guaranteed price. Circular 01/2024 provides technical requirements for behind-the-meter systems.

Grid access

Constrained in key regions

Ninh Thuan and Binh Thuan provinces face significant curtailment (20-30% in peak periods). New capacity additions require transmission upgrade confirmation from EVN.

Recent changes

Jan 2025

DPPA pilot implementation rules published

MOIT Circular 02/2025 details eligible buyer criteria, contract templates, and wheeling charge methodology for the DPPA pilot under Decision 80.

Nov 2024

PDP8 implementation plan updated

Prime Minister approved revised Power Development Plan VIII implementation targets: 20 GW solar by 2030, down from initial 27 GW target due to grid constraints.

Sep 2024

Decision 80 — Direct PPA framework

Establishes the legal basis for direct power purchase agreements between renewable generators and large consumers, bypassing EVN as sole buyer.

Jun 2024

Circular on rooftop solar technical standards

MOIT Circular 01/2024 sets technical standards for behind-the-meter rooftop solar: inverter requirements, protection relay specs, and metering obligations.

Mar 2024

EVN publishes curtailment data

First official disclosure of solar curtailment rates by province. Ninh Thuan reported 28% average curtailment in Q1 2024.

Dec 2023

Competitive auction framework proposed

MOIT draft circular proposes auction-based allocation for new utility-scale solar capacity. Target: pilot auctions in 2025 for 2-3 GW.

Who is affected

Utility-scale developers

No guaranteed offtake mechanism. Must wait for auctions or negotiate bilateral DPPAs with eligible buyers.

Rooftop installers

Self-consumption economics only. Payback depends entirely on avoided tariff (currently ~1,800-2,900 VND/kWh for commercial).

Foreign investors

DPPA pilot opens a new entry path. Projects >30 MW in designated zones can contract directly with industrial buyers.

Industrial consumers

Large consumers (>200 kV connection) can now procure renewable electricity directly, enabling RE100 and ESG commitments.

Key dates

DPPA pilot

Q1 2025

First contracts expected

Auction pilot

H2 2025 (target)

2-3 GW initial capacity

PDP8 review

2026

Mid-term capacity target revision

Sources

[1]
Vietnam PMDecision 80/2024/QD-TTg — Direct Power Purchase Agreement Pilot (2024)
[2]
MOITCircular 02/2025 — DPPA Implementation Rules (2025)
[3]
MOITCircular 01/2024 — Rooftop Solar Technical Standards (2024)
[4]
EVNPower Development Plan VIII Implementation Report (2024)
[5]
MOITDraft Circular on Competitive Auction Framework (2023)

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