Vietnam considers solar pricing by province

Photo courtesy of Tuoi Tre News

Vietnam is considering a new way of setting solar-power prices that would reflect local conditions, replacing the current system of three broad regions.

The Ministry of Industry and Trade has included the proposal in a draft amendment to Circular No. 09, which covers how price frameworks are determined for electricity generation and imported electricity.

Two options under review

For solar plants, the ministry has proposed setting price frameworks either by socio-economic region under the national master plan or by the location of individual provinces and cities.

The draft would also define floating solar plants for local implementation, excluding installations with photovoltaic panels placed on irrigation canals.

Reflecting local conditions

The ministry said solar radiation and wind speeds differ significantly across Vietnam, affecting investment conditions for renewable projects. It argues that provincial or regional pricing could better reflect costs and attract investment.

Energy specialist Nguyen Huu Khoa said Vietnam’s 34 provinces and centrally governed cities could be grouped into four bands based on solar radiation. Areas with stronger solar radiation would generally attract lower purchase prices.

Investor certainty remains key

Phan Dang An of Vu Phong Energy Group said clear transition rules would be essential, as solar projects require substantial capital and long operating periods. Pricing should also be aligned with grid infrastructure, power-absorption capacity and local demand.

What it means for foreigners in Vietnam

The proposal does not change household power bills now. It concerns generation projects, but a more locally tailored approach could influence where new renewable capacity is built and how quickly it reaches the grid.

The current 2025 ceiling price for ground-mounted solar ranges from VND1,012 to VND1,383 per kWh, depending on the region.

27 August 2026