Demand for rooftop solar systems in industrial zones is rising steadily, driven by economic and sustainability needs. However, businesses and investors continue to face numerous challenges. Removing regulatory barriers and establishing a clear legal framework for rooftop solar development linked to industrial production is now a pressing requirement.

Vietnam currently has more than 40,000 companies operating across 381 industrial zones and 700 industrial clusters. Rooftop space in these areas offers a solar potential of 12–20 GWp - equivalent to the total capacity of over 10 large coal-fired power plants.

Driving renewable energy development

Power Development Plan VIII (2021–2030, vision to 2050) prioritizes self-generated, self-consumed solar power, including residential rooftops and commercial buildings not connected or selling to the national grid. Notably, the adjusted PDP VIII recently raised solar power targets from 25,867–52,825 MW to 46,459–73,416 MW, accounting for 25.3–31.1% of total power capacity.

In March 2025, the Vietnamese government issued Decrees No. 57/2025/ND-CP and No. 58/2025/ND-CP, marking a key step in renewable energy policy. Decree 58 officially recognizes rooftop solar as part of the renewable energy mix, allowing households and businesses to invest for internal use and sell up to 20% of surplus electricity to the grid.

This provides clarity for households and small-to-medium enterprises, which are central to rooftop solar expansion. Meanwhile, Decree 57 introduces a direct power purchase mechanism, enabling “rooftop solar for lease” models, particularly useful in industrial zones with high electricity consumption.

Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), Hoang Quang Phong, affirmed that these new policies provide a strong legal foundation for businesses to green their operations and transition to clean energy.

Phan Thi Thu Thuy, Deputy Head of the Electricity Market and System Department under the Ministry of Industry and Trade, noted that the government encourages purchasing up to 20% of surplus solar output monthly under the self-generation, self-consumption model. This is expected to significantly boost rooftop solar deployment, especially for standalone houses.

Persistent challenges

Rooftop solar not only helps businesses cut power costs but also enhances their compliance with green export standards. It’s a perfect match for industrial operations that consume energy during daytime hours, while easing pressure on the national grid.

However, Trần Thủy Tiên, Director of Project Development and External Relations at Constant Energy, pointed out that many companies seeking to switch from conventional to renewable energy find rooftop solar the only viable model, but it currently meets just 20% of their energy needs.

Despite its potential, many industrial zone businesses remain hesitant to invest. Do Quang Thinh, Operations Director at Nam Tai Green Energy, explained that Decree 57 only permits direct power purchases for consumers using over 200,000 kWh/month - excluding many small and medium enterprises that also need green energy for export compliance and cost optimization.

Another major barrier is the pricing model, which is still based on ground-mounted solar, while rooftop systems - especially small-scale ones - carry higher investment costs, extending the payback period and reducing investor appeal.

Implementation in industrial zones is also hindered by tenancy issues. Tenants typically don’t own the roof and have short lease durations, making installation unviable. Meanwhile, factory owners are prohibited from reselling power to tenants. This results in tens of thousands of square meters of unused rooftop space, wasting green energy potential.

Energy expert Phan Cong Tien from the Institute for Smart Energy Application Research (iSEAR) recommended allowing surplus power sales not only to EVN but also to businesses within the same industrial zone, with no cap on internal transactions.

He also proposed letting projects under 30 MW engage in bilateral power purchase agreements (PPAs) instead of joining the spot market. Buyers would only pay standard transmission and service fees to EVN, cutting transmission costs and improving efficiency.

According to Tien, such changes would accelerate the development of decentralized power sources across provinces and align with the green energy transition.

Industry experts also proposed that electricity prices be market-driven, with detailed guidance from relevant ministries on investment, grid connection, operations, fire safety, and environmental compliance. This would enable manufacturers, infrastructure investors, and third parties to participate transparently and effectively in the rooftop solar market.

PV