Market Overview

The Vietnam Solar Energy market size reached approximately 25.43 TWh in 2024. The market is projected to grow at a CAGR of 3.10% between 2025 and 2034, reaching a value of around 34.51 TWh by 2034. Government initiatives, favorable policies, and increasing investments in renewable energy have contributed to the growth of the solar energy market. The declining cost of solar photovoltaic (PV) technology, coupled with an increasing push towards sustainable energy, is driving Vietnam’s transition toward solar power. With Vietnam’s electricity demand growing steadily, solar energy is set to play a crucial role in fulfilling the country’s future energy needs. Additionally, the Vietnamese government has outlined ambitious renewable energy targets, which include increasing the share of solar energy in the national power grid. Investments in solar infrastructure, the development of smart grids, and enhanced energy storage solutions are expected to support long-term market expansion.

Market Trends

Vietnam's solar energy market is experiencing several key trends that are shaping its growth. The country is witnessing a shift towards advanced solar photovoltaic (PV) technologies, including bifacial solar panels and floating solar farms. These innovations enhance efficiency and address land availability issues. Furthermore, net metering policies and financial incentives for rooftop solar installations are encouraging residential and commercial consumers to adopt solar energy solutions. Another emerging trend is the expansion of corporate power purchase agreements (PPAs), enabling businesses to secure stable energy costs while meeting sustainability targets. Additionally, energy storage solutions, such as battery integration with solar projects, are gaining traction to enhance grid reliability and optimize energy use. Furthermore, smart grid technology is being integrated to efficiently manage energy distribution, improving the stability of the electricity supply. With the rising adoption of decentralized solar energy systems, there is also a focus on microgrid development in remote and off-grid areas.

Market Growth

The growth of the Vietnam solar energy market is fueled by several factors, including increasing foreign direct investments (FDI) and strong government support. The Vietnamese government has introduced attractive incentives, including tax exemptions, feed-in tariffs, and investment subsidies, to promote solar energy adoption. The declining cost of solar modules, improvements in energy storage technology, and a growing focus on decentralized solar power generation are contributing to market expansion. Additionally, Vietnam's commitment to reducing carbon emissions and achieving its renewable energy targets under international agreements is driving large-scale solar projects. With increased private sector participation and innovation in solar technology, the market is expected to witness steady growth in the coming years. Moreover, partnerships between local and international companies are fostering knowledge transfer, enhancing technological capabilities, and supporting large-scale deployment of solar projects. Government-backed funding initiatives and low-interest financing options are also enabling small and medium enterprises (SMEs) to invest in solar energy solutions.

Market Segmentation

By Technology

• Solar Photovoltaic (PV): The dominant segment in Vietnam’s solar energy market, PV technology is widely used due to its efficiency, scalability, and declining costs. The increasing adoption of rooftop and utility-scale solar PV installations is fueling market growth. The government’s focus on solar energy transition has led to the expansion of PV farms in high-irradiation areas, enhancing overall energy production capacity.
• Concentrated Solar Power (CSP): Although CSP adoption in Vietnam remains limited, advancements in thermal energy storage and hybrid CSP-PV systems could present opportunities for future growth. CSP technology is being explored for its potential in large-scale energy storage and round-the-clock electricity generation.

By Solar Module

• Monocrystalline: Highly efficient and durable, monocrystalline solar modules are widely preferred for residential and commercial applications. With improved manufacturing techniques, monocrystalline modules are becoming more affordable, further boosting their adoption.
• Polycrystalline: A cost-effective option for large-scale solar projects, polycrystalline modules are gaining traction in Vietnam’s utility sector. These modules are widely used due to their balance between performance and affordability.
• Thin-Film Solar Modules: These lightweight and flexible modules are being increasingly used for specialized applications, such as floating solar farms and BIPV (building-integrated photovoltaics). Thin-film technology is gaining attention due to its ability to perform efficiently under low-light and high-temperature conditions.
• Others: Emerging solar module technologies, such as tandem solar cells and perovskite solar cells, are being explored for future applications. Continuous research and development in these areas are expected to drive further efficiency gains and cost reductions.

By Application

• Residential: The adoption of rooftop solar systems in Vietnam’s residential sector is growing due to declining costs and government incentives, such as net metering policies. Homeowners are increasingly installing solar panels to reduce dependency on grid power and lower electricity bills.
• Commercial and Industrial (C&I): Businesses are investing in solar energy to reduce operational costs and achieve sustainability goals. Corporate PPAs are gaining popularity in this segment. Industrial complexes and manufacturing facilities are implementing large-scale rooftop solar systems to offset energy costs and enhance energy security.
• Utility: Large-scale solar farms are a major contributor to Vietnam’s solar energy production, with several high-capacity projects planned to support grid stability and energy diversification. These projects are crucial in ensuring a reliable power supply for growing urban and industrial areas.

Regional Analysis

• Southeast: A key region for solar energy development, with strong industrial demand and government-backed solar projects. The region hosts several large-scale solar farms, contributing significantly to Vietnam's renewable energy output.
• Red River Delta: Although traditionally reliant on other energy sources, solar adoption is increasing, particularly in commercial and industrial applications. Government incentives are encouraging rooftop solar installations in urban centers.
• Mekong River Delta: An important region for solar energy due to its high solar irradiance and available land. Floating solar farms are being explored to maximize energy generation while preserving agricultural land.
• South Central Coast: One of the sunniest regions in Vietnam, making it an attractive location for large-scale solar projects. Several solar parks and hybrid solar-wind farms are under development here.
• Others: Various provinces and rural areas are also embracing solar energy, particularly for off-grid solutions and microgrid developments. Expanding access to solar power in these regions is essential for improving energy security and sustainability.

Companies Covered

• SOLARBK – A leading local solar energy company specializing in rooftop solar solutions, energy storage, and integrated solar applications.
• GCL (Group) Holdings Co., Ltd. – A global player in the solar energy sector, providing photovoltaic modules, energy storage systems, and solar project development services.
• BIMGroup – A major investor in Vietnam’s renewable energy sector, focusing on large-scale solar and wind energy projects.
• TRUNGNAM GROUP – A key developer of utility-scale solar and wind projects, contributing significantly to Vietnam’s energy transition.
• TTC Group – A diversified conglomerate with strong investments in solar energy, operating several solar farms across Vietnam.
• Red Solar Energy Joint Stock Company – Engaged in solar panel manufacturing, project development, and energy solutions for residential and industrial clients.
• Others – Several emerging and established companies are playing a role in Vietnam’s rapidly growing solar energy sector, fostering competition and technological innovation.