This finding comes from an assessment and analysis of typical agrivoltaic (APV) models in Vietnam, conducted by the Institute for Market and Agricultural Institution Research (AMI) and the Agricultural Environment Institute.
Specifically, the economic efficiency of APV projects implemented since 2019 varies. High-tech farms, in particular, can achieve annual profits exceeding one billion dong per hectare when practicing self-consumption and utilizing solar panel installations across the cultivated land area.
Improved profits stem from energy cost savings and increased productivity. Properly arranged solar panel systems reduce the temperature underneath, boosting the yield of most livestock and some shade-loving crops. AMI's survey in the central region and Central Highlands indicates temperatures under solar panel roofs decrease by 6-7°C in mushroom cultivation areas and 1-3°C in livestock farming. This helps livestock reduce heat stress, improve health, increase productivity, and lower feed costs.
For example, in Khanh Hoa, the "happy chicken" model yields 20-30% higher profits compared to traditional methods. In Dak Lak, mushroom output increased by 15-20% due to more stable microclimate conditions.
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A farm with solar panels on its roof. Photo: AMI |
Agrivoltaics represents a global trend. Technology commercialization market intelligence firm SkyQuest (US) reported that the global APV market reached 5 billion USD last year and is projected to quadruple to 21,02 billion USD by 2032. This growth is driven by shrinking arable land and increasing demand for clean electricity. Many countries, such as Japan, Germany, and South Korea, have issued integrated policies that manage the solar panel coverage ratio on cultivated land while providing technical support, credit, and carbon trading for farmers.
According to AMI, Vietnam faces a significant opportunity to apply and scale up agrivoltaic models, simultaneously addressing clean energy challenges and fostering sustainable cultivation. Several favorable conditions are converging: Vietnam is among the Southeast Asian countries with the highest solar radiation, particularly in the South Central Coast, Central Highlands, and Mekong Delta. Additionally, its large agricultural sector provides favorable conditions for integrating APV projects.
Regarding policy, the feed-in tariff (FIT) mechanism, emission reduction commitments, and renewable energy development orientation until 2045 form an important foundation. The approved Power Development Plan VIII encourages self-consumption models until 2030, helping farmers and businesses become familiar and reduce financial risks before expanding to grid-connected models after 2030, according to AMI.
Nevertheless, significant challenges remain. The biggest barrier is high initial investment costs, estimated at over 10 billion dong for 1 MWp capacity. Farmers and cooperatives often lack capital and face difficulties accessing loans in the initial phase. The legal framework for dual land use for agriculture and energy is still pending completion, causing investor apprehension. Furthermore, scientific data on suitable crops and livestock for agrivoltaic models is incomplete, and technical capacity for installation, operation, and maintenance remains limited.
According to AMI, the key to unlocking the potential of agrivoltaics is a clear legal framework, promoting research, and creating appropriate incentive policies for businesses, cooperatives, and individuals to participate. On 9/9, the Ministry of Agriculture and Environment, in collaboration with the German Agency for International Cooperation (GIZ), launched the Project "Agricultural Cultivation combined with Solar Power for Rural Vietnam" (Agri-PV).
The project will focus on implementation in the South Central Coast, Central Highlands, and Mekong Delta, aiming for at least 10 pilot models during phase 2025-2027. Agri-PV is expected to help farmers increase income, improve market access, financial accessibility, and enhance the value of agricultural supply chains.
Vien Thong
