Vietnam Prioritises Battery Storage as Rooftop Solar Incentives Under Review

HANOI — Vietnam is preparing new policies to accelerate rooftop solar development while expanding investment in battery energy storage as the country increases its share of renewable energy.

The Ministry of Industry and Trade (MoIT) is drafting a decision to establish incentives for rooftop solar systems. The proposed support package initially included partial investment subsidies funded by the state budget and preferential loans to help households install rooftop solar panels.

However, the subsidy scheme has been delayed after the Ministry of Finance said budget resources were not yet available to fund direct subsidies. Discussions are continuing on potential concessional lending mechanisms and the financial institutions that could provide such loans.

Despite the delay, Vietnam has introduced new regulatory measures to support renewable energy deployment. Decree No. 243/2026/ND-CP, issued on June 26, provides additional mechanisms for rooftop solar development and strengthens the legal framework for renewable energy projects.

Battery energy storage is also becoming a key priority as Vietnam integrates more renewable generation. Under the revised National Power Development Plan, the country aims to develop 10,000–16,000 MW of energy storage capacity by 2030.

Initial battery storage investments are being prioritised in northern Vietnam, where electricity supply and demand pressures are greater. Vietnam Electricity (EVN) and local authorities are expected to continue developing storage projects, while the MoIT is also studying whether energy storage could be recognised as an ancillary service to support grid operations.

The government is further considering making battery storage mandatory for utility-scale solar projects. Under current planning requirements, new solar farms included in the national power plan would be required to install storage capacity equivalent to around 10% of their installed generation capacity, with a minimum two-hour discharge duration.

The measures reflect Vietnam's broader efforts to strengthen grid flexibility and integrate a growing volume of renewable energy while reducing regulatory and financial barriers to clean energy investment.