Investing in Solar Energy: Benefits for Businesses in Vietnam

In the context of rising electricity prices and Vietnam’s commitment to achieving Net Zero by 2050, the demand for green energy sources is increasing. Investing in solar energy systems for businesses and factories is gradually becoming popular as a solution for providing green, clean, and sustainable energy. This article will delve into the benefits for businesses when installing solar energy systems.

1. Definition of solar energy:

Solar energy is the electricity generated from sunlight through solar panels. The process of converting this energy begins when sunlight or photon energy rays hit the panels and are transformed into direct current (DC) electricity. This direct current (DC) then passes through an inverter and is converted into alternating current (AC). This alternating current is stored in an energy storage system (ESS) and subsequently supplied to electrical devices or fed into the national grid.

Currently, solar energy is gradually becoming a common solution for converting to electrical energy due to its outstanding advantages over fossil fuels, such as being clean, renewable, non-polluting, stable, and usable in various locations. Additionally, the current trend of globalization requires businesses to use clean fuel sources, making the adoption of solar energy in production and operations increasingly essential.

2. Benefits of Installing Solar Energy Systems for Businesses:

Cost Savings:

This is the most important benefit and the primary goal for businesses seeking solar energy. By generating their own electricity from solar energy systems for production and operations, businesses can significantly reduce their monthly electricity bills, especially during peak hours when electricity prices are high. 

The current peak electricity price is 4,800 VND/kWh (according to the business electricity pricing table, Decision 2699/QĐ-BCT of the Ministry of Industry and Trade), which further enhances the effectiveness of solar energy systems in saving electricity costs for businesses. As a result, the payback period for the initial investment in the system is shortened to just 4-5 years. 

Additionally, using solar energy helps businesses achieve greater financial stability by protecting them from fluctuations in electricity prices in the market. Saving on electricity costs for production also increases profit margins for businesses.

Increased Competitiveness:

Implementing solar energy systems also enhances the corporate image of businesses. While other organizations rely on grid electricity from the national network, a business that uses clean energy will shape a green, clean, and sustainable image in the eyes of the public. This positively impacts the brand recognition of the corporation and the business. 

Furthermore, businesses that use solar energy for producing their products often find it easier to attract customers. Consumers are increasingly interested in and trust products and services from companies that are responsible towards the community and the environment. Their support for these products also contributes to maintaining a green, clean, and sustainable environment.

Stabilizing the power supply:

Thanks to its autonomy and minimal dependence on the national grid, the solar power system will enable businesses to produce and consume the necessary amount of electricity for their operations. Additionally, solar energy helps stabilize the power supply as businesses will not be affected by grid-related incidents such as power outages or voltage drops.

Using solar energy also effectively protects electrical equipment because this system helps maintain a stable voltage level, thereby avoiding damage caused by voltage drops or surges. 

3. Initial investment costs and payback period:

Typically, the cost to complete a 1 MWP solar power system is around 12-13 billion VND in 2023. This cost usually varies depending on the installed capacity and the quality of the components. Generally, the cost distribution for the system components is approximately 60% for solar panels, 20% for inverters, 10% for balance of system (frames & mounts), and 5% for auxiliary equipment (junction boxes & electrical cabinets) and labor.

For the payback period, if the system has a capacity of 1MWP, the payback time typically ranges from 4.5 to 5 years. Additionally, current solar energy systems have a lifespan of 25 to 30 years, so businesses will realize a significant profit after recovering the initial costs. 

Factors that can affect the payback period include:

• Total initial investment costs
• Government incentives such as tax reductions or feed-in tariffs (FIT)
• System performance
• Solar energy output
• Solar radiation levels at the installation site

4. Installation process:

After thoroughly researching information about solar energy systems and your business is considering reputable construction and installation units, choose VAS with a service process designed in great detail and rigor, consisting of 4 steps:

• Survey and consultation: In this step, we will introduce solutions, equipment, and technologies that can be provided for the factory and business. Then, VAS will propose the most effective solution that fits the needs and conditions of the factory (maximum capacity that can be installed & expected output that the system can provide).
• System design: Experienced technical specialists will conduct field surveys, check environmental conditions to collect data for optimizing system calculations. The results will be meticulously calculated, the system designed, and a break-even point provided for the factory investor.
• Installation and operation: At this stage, VAS will carry out direct construction and ensure the system’s synchronization. We will perform tasks including: supervising construction, ensuring progress, and handing over the system to the investor.
• Warranty and maintenance: We will guide operation, transfer technology, helping customers understand and take control of the system. Next, VAS will support regular monitoring and supervision of the system. VAS commits to warranty the equipment, performance, and long-term technical support.

5. Conclusion

The transition to clean energy is not just a trend but a pressing necessity. With a solar power system, businesses can not only save significant costs but also contribute to environmental protection, enhance their brand image, and ensure stable production and business operations. This is a smart investment that offers long-term benefits. Let VAS accompany you on your journey to green your business. Contact our hotline: 0766666480 now for consultation and installation of a solar power system at the best price!