On 28 May 2020, the Microfinance and Community Development Institute (MACDI) took part in the “Banking and Finance for Commercial and Industrial Rooftop Solar in Vietnam” Webinar hosted by Clean Energy Investment Accelerator (CEIA) and the USAID Vietnam Low Emission Energy Program (V-LEEP) through the Renewable Energy Buyers Vietnam Working Group. Since 2017, the Working Group has become a platform for collaborative efforts between commercial and industrial (C&I) energy users interested in clean energy, renewable energy project developers and investors, and representatives from the Vietnamese federal government. The Working Group focuses on constructing and revising policy, regulatory, and financing frameworks necessary for Việt Nam to reach its clean energy goals.
The discussion in the webinar was held at a timely moment: within 16 months since March 2019, Vietnam has seen more than 550 megawatts of new rooftop solar capacity installed, with a projected energy production of up to 1 gigawatt operational by the end of 2020. Market players seek to seize this unprecedented financing potential to expand the effort on a larger scale.
The webinar revealed Việt Nam’s attraction in the eyes of domestic and foreign banks as a market for rooftop solar lending, as expected market growth would bring about an increase in popularity in financing efforts for rooftop solar projects. Not only that, but the nation as a whole boasts a multitude of promising prospects in the field of renewable energy due to projected economic growth and increased manufacturing. However, the relative immaturity of the Vietnamese C&I rooftop solar market, with only small and medium-sized enterprises and humble projects, casts doubts on the installation process, system quality, and endurance. Hence, Việt Nam should adopt nationwide quality standards for rooftop solar products, installation practices, and solutions providers.
MACDI anticipates great progress in the field of solar energy, especially the rooftop models, and expects to closely monitor the changes in financing and investment trends in order to best chart our future endeavors.