Dual benefits: A worker pushes a wheelbarrow full of durian at a farm in Vietnam. The agri-solar model offers social benefits by creating new livelihoods and reducing conflicts between solar investors and farmers. — Bloomberg
HANOI: Solar power in agriculture should be studied as one of the most promising approaches to generating clean energy in Vietnam, according to economists and business insiders.
They said the agricultural sector offers unique opportunities to maximise productivity.
By integrating crop production with solar power, or Agrivoltaics, farmers can generate extra income by using self-produced electricity for on-site consumption and selling surplus power to the grid, while still maintaining suitable conditions for livestock and cultivating shade-tolerant crops beneath the panels.
Institute of Agricultural Energy director Prof Mai Van Trinh said that using the same plot of land for both farming and solar power can yield multiple benefits.
This dual-use approach not only increases land productivity but also provides farmers with additional revenue streams.
Agricultural Market and Institutional Research Institute deputy director Do Huy Thiep said the agri-solar model offers social benefits by creating new livelihoods and reducing conflicts between solar investors and farmers.
He noted that, on average, a one megawatt solar installation requires roughly one ha of land – often low-value agricultural land that might otherwise be repurposed.
Integrating agriculture beneath these panels can help meet both domestic and international green standards, supporting sustainable growth and accelerating Vietnam’s renewable energy transition.
Hung Viet Green Technology Joint Stock Company chairman Vu Van Hai added that Vietnam’s natural conditions and climate are ideally suited to the adoption of solar power in agriculture.
He said as the country has started to evolve from an agricultural economy, the effective adoption of global best practices can potentially drive robust growth in agricultural, forestry and fishery exports.
Combining extensive arable land and water resources with solar installations not only improves investment efficiency and farmers’ profits but also creates a microenvironment that provide natural shade, lower temperatures and reduced radiation for crops and livestock and promote beneficial microbial activity.
In remote areas – such as hilly regions, sparsely populated zones or aquaculture districts – stable, low-cost solar electricity can support essential activities like irrigation, lighting for livestock facilities, or powering machinery, thereby enhancing overall operational efficiency, he noted.
Despite the promising potential, several challenges remain, said economists and businesses. Thinh said there is currently no clear policy that distinguishes the agricultural solar model from other solar power generation models.
To make matters worse, the expansion of solar power in agriculture faces hurdles such as high initial investment – costs exceeding 10 billion dong per megawatt-peak.
There are also gaps in regulations for multi-purpose land use and insufficient scientific evidence on suitable crop choices.
In addition, stakeholders often have an incomplete understanding of solar energy, and no effective mechanism exists to address instances of policy exploitation.
Under the current regulations, farms are limited to selling a maximum of 20% of their generated electricity back to the grid.
This constraint complicates the recovery of initial investments.
According to Hai, despite these issues being raised repeatedly in recent years, recent legal reforms have yet to offer a clear framework.
This is despite government sources suggesting the government is working on a comprehensive solution to prevent policy abuse.
“One can hope a clear policy will be issued and take effect in 2025.
“A clear policy alone should be enough to drive the adoption of solar power in agriculture,” he added.
Alena Energy Technology Co Ltd managing director Phan Ngoc Anh emphasises the need for the government to actively disseminate information about solar power in agriculture, particularly in rural areas.
He called for support to help farms and individual farmers access preferential loan schemes for solar investments and for the establishment of demonstration projects so that local communities can learn from practical examples.
Numerous agricultural solar projects have already been implemented in the South-East Asian country over the last few decades, ranging from large-scale installations to rooftop systems.
Some models integrate solar panels with crop cultivation, which is commonly applied to annual crops, certain perennial or medicinal plants and mushroom farming. Other models combine solar power with livestock production or aquaculture. — Viet Nam News/ANN
