Vietnam‘s Ministry of Industry and Trade has approved new regional electricity generation price ceilings for ground-mounted and floating solar projects.

The new framework took effect on Nov. 5, 2026.

Under the new provisions, maximum prices for ground-mounted solar projects range from VND 1,104.32 ($0.04)/kWh in southern Vietnam to VND 1,591.02/kWh in the north. Floating solar projects are subject to higher ceilings, ranging from VND 1,340.21/kWh in the south to VND 1,939.74/kWh in the north.

Projects incorporating battery energy storage systems qualify for higher price ceilings, reaching VND 1,813.48/kWh for ground-mounted solar and VND 2,120.31/kWh for floating solar in northern Vietnam. To qualify, storage systems must have a power capacity of at least 10% of the solar plant’s capacity and a storage and discharge duration of two hours.

Compared with the 2025 framework, the new ceilings are higher across all regions and project categories. For ground-mounted solar without storage, maximum prices increased by 15.1% in northern Vietnam, 16.8% in central Vietnam and 9.1% in the south. Floating solar ceilings rose by approximately 15.1%, 16.8% and 9.1%, respectively. The 2025 framework had already introduced higher price ceilings for projects equipped with battery storage systems.

The price ceilings provide a regulatory basis for negotiating electricity purchase prices between solar project developers and electricity buyers, including state-owned utility Vietnam Electricity (EVN). They set maximum prices rather than guaranteed feed-in tariffs, allowing project-specific power purchase agreement (PPA) prices to be negotiated within the applicable regulatory framework.

Vietnam’s solar capacity surpassed 19 GW by the end of 2025, with around 586 MW of solar added last year.