Solar Energy Has Become An Indispensable Choice For Enterprises In Vietnam

In the context of climate change and increasing demand for electricity, Vietnam is facing pressure to ensure a stable and sustainable power source. According to EVN data, in 2025, industrial electricity prices increased to 0.082 USD/kWh, and industrial parks in Bac Ninh often face irregular power outages (up to 20 days/year). Therefore, switching to solar energy through direct power purchase agreements (PPA) becomes the optimal solution for businesses to save costs and increase the stability of power sources.

A specific example: ABC Garment Company in Bac Ninh Industrial Zone has deployed a 100kW rooftop solar system combined with PPA, helping to reduce annual electricity costs by up to 30% compared to the old level. In addition, the company also enjoys subsidies from the government and saves 50 tons of CO2 per year.

(Panoramic view of VSIP Industrial Park in Bac Ninh) Image credit: KLAND

2.1. Why does PPA save up to 30% of electricity costs?

Stable price: With PPA, businesses can buy electricity at a fixed price of 0.05 USD/kWh for 20 years, not affected by policy or market changes.

Fast payback time: Normally, PPA projects in Bac Ninh have a payback period of 5-7 years, depending on the capacity and ceiling area.

No need for initial investment: The supplier will bear all equipment and installation costs, businesses only need to pay monthly electricity bills.

2.2. Comparison of electricity costs between PPA and conventional grid

Power source type Price (USD/kWh) Stabilization period Payback rate

Conventional grid 0.082 1 year None

PPA 0.05 20 years 5-7 years

Result: A business consuming 100,000 kWh/month will save 3,200 USD/month, equivalent to 38,400 USD/year with PPA.

3.1. Conditions for participating in PPA

Major customers: Businesses consuming 200,000 kWh/month or more, such as electronics, garment, and chemical factories.

Solar energy suppliers: Must have a power production license and meet efficiency standards (minimum 21% for solar panels).

3.2. PPA signing procedure

Ceiling capacity check: The supplier will survey the ceiling area, durability and sunlight.

System design: Determine the solar array capacity, installation location and calculate economic benefits.

Sign the contract: Specify the terms of price, duration, and responsibilities of the parties.

Construction and operation: Average construction time is 3-6 months.

4.1. Solar potential in Bac Ninh

Sunlight level: 2,000-2,500 hours/year, equivalent to 5-6 kWh/m²/day.

Ceiling area: About 500,000 m² of ceilings of factories in Bac Ninh Industrial Zone can integrate up to 50MW of solar arrays.

4.2. Successful Enterprises with PPAs in Bac Ninh

XYZ Electronics Co., Ltd.: Deployed a 500kW system combined with PPA, saving 150,000 USD/year.

ABC Chemical Co., Ltd.: Used PPA to reduce electricity costs by 30% and achieve CO2 reduction targets.

5.1. High-efficiency solar array

Array type: Thin-film or silicon monocrystal solar array with efficiency up to 22%.

Energy collection: Solar array can collect 80-90% of solar energy, depending on location and weather.

5.2. Maintenance and safety

Monitoring system: Use IoT technology to monitor solar array performance and report errors.

Flood prevention: Design drainage system to avoid the impact of heavy rain.

6.1. Subsidies and incentives

Tax rate: Reduce corporate tax by 10% for 15 years for PPA projects.

Loan: The government provides loans with preferential interest rates of 4-6%/year.

6.2. Solar Energy Planning

By 2030: The Government aims to deploy 20GW of solar arrays, of which 5GW is PPAs in the KTTs.

Infrastructure support: Ensure a solid and stable power connection.

7.1. How to find a reputable supplier?

See the list of registered suppliers: According to the Ministry of Industry and Trade, there are about 50 PPA suppliers licensed to operate in Vietnam.

Explore successful projects: Contact businesses that have implemented PPAs to learn about their experiences.

7.2. What happens if the PPA does not meet the requirements?

Guarantee contract: In the PPA contract, the supplier must guarantee the agreed energy level and price.

Compensation: If the supplier fails to meet the requirements, the business can request compensation or recover the money.

Businesses can now access free feasibility studies and limited-time offers, including 10-year warranties and free installation for projects signed by June 2025. By adopting PPAs, companies not only achieve significant savings but also contribute to Vietnam's 2050 net-zero emissions target.