Overview of FIT 1 solar power price<\/b><\/span><\/h2>\n![\"Latest](\"https:\/\/vrenergy.vn\/wp-content\/uploads\/2025\/02\/chinh-sach-ho-tro-dien-mat-troi-ap-mai-moi-nhat-2-min.jpeg\" "\\"FIT")
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The Feed-in Tariff (FIT 1) played an important role in promoting the development of solar power in Vietnam, helping to attract investment and creating the premise for the boom of the renewable energy industry. However, after the FIT 1 period ended, the solar power market also faced many challenges.<\/p>\n
FIT 1 solar power price mechanism<\/b><\/span><\/h3>\n\n- Preferential price\u00a0<\/b>: Apply fixed electricity purchase price for long term, creating stability for investors.<\/li>\n
- Scope of application\u00a0<\/b>: For rooftop, ground-mounted and floating solar power projects operating before\u00a0June 30, 2019\u00a0<\/b>.<\/li>\n
- Support policy\u00a0<\/b>: The government commits to buying electricity at a fixed price for\u00a020 years\u00a0<\/b>, ensuring stable cash flow.<\/li>\n<\/ul>\n
Impact of FIT 1 price on the market<\/b><\/span><\/h3>\nBenefit\u00a0<\/b>:<\/p>\n\n- Promote strong investment\u00a0<\/b>, making Vietnam one of the fastest developing countries in solar power in the region.<\/li>\n
- Reduce dependence on coal-fired thermal power\u00a0<\/b>, contributing to environmental protection.<\/li>\n<\/ul>\n
Challenge\u00a0<\/b>:<\/p>\n\n- Power grid overload\u00a0<\/b>due to rapid increase in number of projects, causing congestion and reduced power generation.<\/li>\n
- FIT prices gradually decrease in later stages\u00a0<\/b>, affecting investor profits.<\/li>\n<\/ul>\n
Development orientation after FIT 1<\/b><\/span><\/h3>\nAlthough FIT 1 has ended, solar power still has a lot of potential. Solutions to focus on:<\/p>\n
\n- Develop energy storage systems\u00a0<\/b>to reduce pressure on the grid.<\/li>\n
- Optimize self-consumption model\u00a0<\/b>to increase investment efficiency.<\/li>\n
- Promote rooftop solar power\u00a0<\/b>to take advantage of clean energy sources.<\/li>\n<\/ul>\n
FIT 1 has created an important foundation for the solar power industry. To continue to develop, a combination of technology and flexible policies is needed.<\/p>\n
FIT 1 price and application mechanism<\/b><\/span><\/h2>\nFIT 1 price plays an important role in promoting solar power development in Vietnam, bringing many significant benefits to investors and the renewable energy industry, including:<\/p>\n
\n- Attractive price\u00a0<\/b>: FIT 1 is applied at a preferential price, ensuring stable profits for investors throughout the project life cycle. This is an important driving force to attract capital into the solar power sector.<\/li>\n
- Long-term application period\u00a0<\/b>: Solar power projects operating before\u00a0June 30, 2019\u00a0<\/b>will enjoy FIT 1 price for\u00a020 years\u00a0<\/b>, creating cash flow stability and optimizing investment efficiency.<\/li>\n
- Wide scope of application\u00a0<\/b>: FIT 1 mechanism is applied to many types of solar power, including\u00a0ground-mounted solar power, floating solar power and rooftop solar power\u00a0<\/b>, helping to diversify development models.<\/li>\n
- Government support\u00a0<\/b>: The State commits to purchasing all electricity output from projects enjoying FIT 1 price, ensuring stable output and reducing market risks for investors.<\/li>\n
- Promoting clean energy development\u00a0<\/b>: Thanks to the FIT 1 mechanism, a series of solar power projects have been deployed, contributing to reducing dependence on fossil energy and protecting the environment.<\/li>\n<\/ul>\n
![\"solar](\"https:\/\/vrenergy.vn\/wp-content\/uploads\/2025\/02\/sai-pham-dien-mat-troi-mai-nha-1-min.jpg\" "\\"FIT")
<\/p>\n
With the important incentives that FIT 1 brings, this mechanism has created a strong push for the solar power industry in Vietnam, opening up great opportunities for investors and promoting the transition to clean energy in the future.<\/p>\n
Impact of FIT 1 price on investors<\/b><\/span><\/h2>\nThe FIT 1 price plays an important role in attracting investment in the solar power sector, creating a strong driving force for the development of the renewable energy industry. This policy has brought many benefits but also comes with challenges that investors need to consider.<\/p>\n
Benefits of FIT 1 price for investors<\/b><\/span><\/h3>\nFIT 1 price has made solar power projects more attractive, creating many advantages for businesses and investors, including:<\/p>\n
\n- Increased financial stability\u00a0<\/b>: With a fixed electricity purchase price for 20 years, investors can predict cash flows and plan long-term finances.<\/li>\n
- Accelerated payback\u00a0<\/b>: High FIT 1 price helps shorten payback period, facilitating investment expansion.<\/li>\n
- Creating strong growth opportunities\u00a0<\/b>: A series of solar power projects deployed during the FIT 1 phase have helped many businesses develop rapidly in the renewable energy sector.<\/li>\n
- Minimize market risk\u00a0<\/b>: The government commits to purchasing electricity at a fixed price, helping investors reduce the risk of electricity price fluctuations.<\/li>\n<\/ul>\n
![\"solar](\"https:\/\/vrenergy.vn\/wp-content\/uploads\/2025\/02\/sai-pham-dien-mat-troi-mai-nha-2-min.jpg\" "\\"FIT")
<\/p>\n
Challenges in applying FIT price 1<\/b><\/span><\/h3>\nDespite its many benefits, FIT 1 also creates difficulties for investors, especially when the solar power market changes after this period ends.<\/p>\n
\n- Grid overload\u00a0<\/b>: The massive development of solar power projects leads to grid congestion, causing power generation capacity cuts, affecting investors’ profits.<\/li>\n
- Policy change\u00a0<\/b>: After FIT 1 ends, the following FIT periods have gradually decreasing prices, reducing the attractiveness of the market and affecting long-term investment decisions.<\/li>\n
- Operating cost pressure\u00a0<\/b>: Despite high electricity purchase prices, investors still face system maintenance costs, equipment loss and grid connection requirements.<\/li>\n
- Increased competition risk\u00a0<\/b>: As more businesses enter the solar power market, competition becomes increasingly fierce, forcing investors to optimize costs and improve operational efficiency.<\/li>\n<\/ul>\n
Directions for investors after FIT 1<\/b><\/span><\/h3>\nTo maintain profits and continue to grow in the context of changing policies, investors need to apply strategic solutions such as:<\/p>\n
\n- Optimizing self-consumption model\u00a0<\/b>to reduce dependence on electricity selling price to EVN.<\/li>\n
- Develop a battery energy storage system (BESS)\u00a0<\/b>to maximize the output of solar power generated.<\/li>\n
- Looking for investment opportunities in rooftop solar power models\u00a0<\/b>, where there is still potential for development and incentive policies.<\/li>\n
- Proactively adapt to new policies\u00a0<\/b>while optimizing operating costs to ensure long-term profitability.<\/li>\n<\/ul>\n
The FIT 1 price has created a big boost for the solar power market, but to maintain the momentum, investors need to flexibly adapt to changes in policy and technology in the renewable energy industry.<\/p>\n
Compare FIT 1 price with other FIT periods<\/b><\/span><\/h2>\nFeed-in Tariff (FIT) is an important mechanism in promoting solar power development in Vietnam. However, the FIT price has changed over time, directly affecting the investment strategies of businesses and investors.<\/p>\n
Below is a comparison between FIT 1 prices and subsequent FIT periods.<\/p>\n
After the\u00a0FIT 1 phase (2017-2019)\u00a0<\/b>ended, the Government adjusted the solar power purchase price to match the market development. The specific changes are as follows:<\/p>\nFIT 1 Price (2017-2019)<\/b><\/span><\/h3>\nPrice:\u00a09.35 US cents\/kWh (~2,086 VND\/kWh)<\/b><\/p>\n
Scope of application: Projects operating before\u00a0June 30, 2019<\/b><\/p>\n
Applicable period:\u00a020 years<\/b><\/p>\n
Features: Attractive FIT 1 price, helping to boom investment in solar power, but also putting pressure on the grid.<\/p>\n
FIT 2 Price (2019-2020)<\/b><\/span><\/h3>\nPrice:<\/p>\n
\n- Ground-mounted solar power:\u00a07.09 US cents\/kWh (~1,644 VND\/kWh)<\/b><\/li>\n
- Floating solar power:\u00a07.69 US cents\/kWh (~1,783 VND\/kWh)<\/b><\/li>\n
- Rooftop solar:\u00a08.38 US cents\/kWh (~1,943 VND\/kWh)<\/b><\/li>\n<\/ul>\n
Scope of application: Projects operating from\u00a0July 1, 2019 to December 31, 2020<\/b><\/p>\n
Features: FIT 2 price is lower than FIT 1, causing many investors to recalculate financial efficiency.<\/p>\n
FIT 3 Price (2020-2021)<\/b><\/span><\/h3>\nThere is no fixed price, instead, solar power prices move to a direct\u00a0bidding\u00a0<\/b>and\u00a0negotiation mechanism\u00a0<\/b>.<\/p>\n
Characteristics: Projects must participate in bidding to buy electricity at reasonable prices, no longer enjoying fixed prices as before.<\/p>\n
Trends and future of FIT price in solar power in Vietnam<\/b><\/span><\/h2>\n![\"solar](\"https:\/\/vrenergy.vn\/wp-content\/uploads\/2025\/02\/sai-pham-dien-mat-troi-mai-nha-3-min.jpg\" "\\"FIT")
<\/p>\n
The strong development of renewable energy technology along with the Government’s regulatory policies will shape the future of solar FIT prices in Vietnam. Some prominent trends in the coming time include:<\/p>\n
Switch to bidding mechanism<\/b><\/span><\/h3>\nInstead of applying a fixed FIT price, the competitive bidding model will be deployed more widely. This mechanism helps optimize investment costs, ensure reasonable electricity purchase prices and reduce the financial burden on the State.<\/p>\n
Developing a self-consumption solar power model<\/b><\/span><\/h3>\n
<\/p>\n- \n
- Preferential price\u00a0<\/b>: Apply fixed electricity purchase price for long term, creating stability for investors.<\/li>\n
- Scope of application\u00a0<\/b>: For rooftop, ground-mounted and floating solar power projects operating before\u00a0June 30, 2019\u00a0<\/b>.<\/li>\n
- Support policy\u00a0<\/b>: The government commits to buying electricity at a fixed price for\u00a020 years\u00a0<\/b>, ensuring stable cash flow.<\/li>\n<\/ul>\n
Impact of FIT 1 price on the market<\/b><\/span><\/h3>\n
Benefit\u00a0<\/b>:<\/p>\n
- \n
- Promote strong investment\u00a0<\/b>, making Vietnam one of the fastest developing countries in solar power in the region.<\/li>\n
- Reduce dependence on coal-fired thermal power\u00a0<\/b>, contributing to environmental protection.<\/li>\n<\/ul>\n
Challenge\u00a0<\/b>:<\/p>\n
- \n
- Power grid overload\u00a0<\/b>due to rapid increase in number of projects, causing congestion and reduced power generation.<\/li>\n
- FIT prices gradually decrease in later stages\u00a0<\/b>, affecting investor profits.<\/li>\n<\/ul>\n
Development orientation after FIT 1<\/b><\/span><\/h3>\n
Although FIT 1 has ended, solar power still has a lot of potential. Solutions to focus on:<\/p>\n
- \n
- Develop energy storage systems\u00a0<\/b>to reduce pressure on the grid.<\/li>\n
- Optimize self-consumption model\u00a0<\/b>to increase investment efficiency.<\/li>\n
- Promote rooftop solar power\u00a0<\/b>to take advantage of clean energy sources.<\/li>\n<\/ul>\n
FIT 1 has created an important foundation for the solar power industry. To continue to develop, a combination of technology and flexible policies is needed.<\/p>\n
FIT 1 price and application mechanism<\/b><\/span><\/h2>\n
FIT 1 price plays an important role in promoting solar power development in Vietnam, bringing many significant benefits to investors and the renewable energy industry, including:<\/p>\n
- \n
- Attractive price\u00a0<\/b>: FIT 1 is applied at a preferential price, ensuring stable profits for investors throughout the project life cycle. This is an important driving force to attract capital into the solar power sector.<\/li>\n
- Long-term application period\u00a0<\/b>: Solar power projects operating before\u00a0June 30, 2019\u00a0<\/b>will enjoy FIT 1 price for\u00a020 years\u00a0<\/b>, creating cash flow stability and optimizing investment efficiency.<\/li>\n
- Wide scope of application\u00a0<\/b>: FIT 1 mechanism is applied to many types of solar power, including\u00a0ground-mounted solar power, floating solar power and rooftop solar power\u00a0<\/b>, helping to diversify development models.<\/li>\n
- Government support\u00a0<\/b>: The State commits to purchasing all electricity output from projects enjoying FIT 1 price, ensuring stable output and reducing market risks for investors.<\/li>\n
- Promoting clean energy development\u00a0<\/b>: Thanks to the FIT 1 mechanism, a series of solar power projects have been deployed, contributing to reducing dependence on fossil energy and protecting the environment.<\/li>\n<\/ul>\n
<\/p>\nWith the important incentives that FIT 1 brings, this mechanism has created a strong push for the solar power industry in Vietnam, opening up great opportunities for investors and promoting the transition to clean energy in the future.<\/p>\n
Impact of FIT 1 price on investors<\/b><\/span><\/h2>\n
The FIT 1 price plays an important role in attracting investment in the solar power sector, creating a strong driving force for the development of the renewable energy industry. This policy has brought many benefits but also comes with challenges that investors need to consider.<\/p>\n
Benefits of FIT 1 price for investors<\/b><\/span><\/h3>\n
FIT 1 price has made solar power projects more attractive, creating many advantages for businesses and investors, including:<\/p>\n
- \n
- Increased financial stability\u00a0<\/b>: With a fixed electricity purchase price for 20 years, investors can predict cash flows and plan long-term finances.<\/li>\n
- Accelerated payback\u00a0<\/b>: High FIT 1 price helps shorten payback period, facilitating investment expansion.<\/li>\n
- Creating strong growth opportunities\u00a0<\/b>: A series of solar power projects deployed during the FIT 1 phase have helped many businesses develop rapidly in the renewable energy sector.<\/li>\n
- Minimize market risk\u00a0<\/b>: The government commits to purchasing electricity at a fixed price, helping investors reduce the risk of electricity price fluctuations.<\/li>\n<\/ul>\n
<\/p>\nChallenges in applying FIT price 1<\/b><\/span><\/h3>\n
Despite its many benefits, FIT 1 also creates difficulties for investors, especially when the solar power market changes after this period ends.<\/p>\n
- \n
- Grid overload\u00a0<\/b>: The massive development of solar power projects leads to grid congestion, causing power generation capacity cuts, affecting investors’ profits.<\/li>\n
- Policy change\u00a0<\/b>: After FIT 1 ends, the following FIT periods have gradually decreasing prices, reducing the attractiveness of the market and affecting long-term investment decisions.<\/li>\n
- Operating cost pressure\u00a0<\/b>: Despite high electricity purchase prices, investors still face system maintenance costs, equipment loss and grid connection requirements.<\/li>\n
- Increased competition risk\u00a0<\/b>: As more businesses enter the solar power market, competition becomes increasingly fierce, forcing investors to optimize costs and improve operational efficiency.<\/li>\n<\/ul>\n
Directions for investors after FIT 1<\/b><\/span><\/h3>\n
To maintain profits and continue to grow in the context of changing policies, investors need to apply strategic solutions such as:<\/p>\n
- \n
- Optimizing self-consumption model\u00a0<\/b>to reduce dependence on electricity selling price to EVN.<\/li>\n
- Develop a battery energy storage system (BESS)\u00a0<\/b>to maximize the output of solar power generated.<\/li>\n
- Looking for investment opportunities in rooftop solar power models\u00a0<\/b>, where there is still potential for development and incentive policies.<\/li>\n
- Proactively adapt to new policies\u00a0<\/b>while optimizing operating costs to ensure long-term profitability.<\/li>\n<\/ul>\n
The FIT 1 price has created a big boost for the solar power market, but to maintain the momentum, investors need to flexibly adapt to changes in policy and technology in the renewable energy industry.<\/p>\n
Compare FIT 1 price with other FIT periods<\/b><\/span><\/h2>\n
Feed-in Tariff (FIT) is an important mechanism in promoting solar power development in Vietnam. However, the FIT price has changed over time, directly affecting the investment strategies of businesses and investors.<\/p>\n
Below is a comparison between FIT 1 prices and subsequent FIT periods.<\/p>\n
After the\u00a0FIT 1 phase (2017-2019)\u00a0<\/b>ended, the Government adjusted the solar power purchase price to match the market development. The specific changes are as follows:<\/p>\n
FIT 1 Price (2017-2019)<\/b><\/span><\/h3>\n
Price:\u00a09.35 US cents\/kWh (~2,086 VND\/kWh)<\/b><\/p>\n
Scope of application: Projects operating before\u00a0June 30, 2019<\/b><\/p>\n
Applicable period:\u00a020 years<\/b><\/p>\n
Features: Attractive FIT 1 price, helping to boom investment in solar power, but also putting pressure on the grid.<\/p>\n
FIT 2 Price (2019-2020)<\/b><\/span><\/h3>\n
Price:<\/p>\n
- \n
- Ground-mounted solar power:\u00a07.09 US cents\/kWh (~1,644 VND\/kWh)<\/b><\/li>\n
- Floating solar power:\u00a07.69 US cents\/kWh (~1,783 VND\/kWh)<\/b><\/li>\n
- Rooftop solar:\u00a08.38 US cents\/kWh (~1,943 VND\/kWh)<\/b><\/li>\n<\/ul>\n
Scope of application: Projects operating from\u00a0July 1, 2019 to December 31, 2020<\/b><\/p>\n
Features: FIT 2 price is lower than FIT 1, causing many investors to recalculate financial efficiency.<\/p>\n
FIT 3 Price (2020-2021)<\/b><\/span><\/h3>\n
There is no fixed price, instead, solar power prices move to a direct\u00a0bidding\u00a0<\/b>and\u00a0negotiation mechanism\u00a0<\/b>.<\/p>\n
Characteristics: Projects must participate in bidding to buy electricity at reasonable prices, no longer enjoying fixed prices as before.<\/p>\n
Trends and future of FIT price in solar power in Vietnam<\/b><\/span><\/h2>\n
<\/p>\nThe strong development of renewable energy technology along with the Government’s regulatory policies will shape the future of solar FIT prices in Vietnam. Some prominent trends in the coming time include:<\/p>\n
Switch to bidding mechanism<\/b><\/span><\/h3>\n
Instead of applying a fixed FIT price, the competitive bidding model will be deployed more widely. This mechanism helps optimize investment costs, ensure reasonable electricity purchase prices and reduce the financial burden on the State.<\/p>\n
Developing a self-consumption solar power model<\/b><\/span><\/h3>\n
- Floating solar power:\u00a07.69 US cents\/kWh (~1,783 VND\/kWh)<\/b><\/li>\n
- Develop a battery energy storage system (BESS)\u00a0<\/b>to maximize the output of solar power generated.<\/li>\n
- Policy change\u00a0<\/b>: After FIT 1 ends, the following FIT periods have gradually decreasing prices, reducing the attractiveness of the market and affecting long-term investment decisions.<\/li>\n
- Accelerated payback\u00a0<\/b>: High FIT 1 price helps shorten payback period, facilitating investment expansion.<\/li>\n
- Long-term application period\u00a0<\/b>: Solar power projects operating before\u00a0June 30, 2019\u00a0<\/b>will enjoy FIT 1 price for\u00a020 years\u00a0<\/b>, creating cash flow stability and optimizing investment efficiency.<\/li>\n
- Optimize self-consumption model\u00a0<\/b>to increase investment efficiency.<\/li>\n
- FIT prices gradually decrease in later stages\u00a0<\/b>, affecting investor profits.<\/li>\n<\/ul>\n
- Reduce dependence on coal-fired thermal power\u00a0<\/b>, contributing to environmental protection.<\/li>\n<\/ul>\n
- Scope of application\u00a0<\/b>: For rooftop, ground-mounted and floating solar power projects operating before\u00a0June 30, 2019\u00a0<\/b>.<\/li>\n
![\"You](\"https:\/\/vrenergy.vn\/wp-content\/uploads\/2024\/11\/tu-van-trien-khai-du-an-dien-mat-troi-4-min.jpg\" "\\"FIT")
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