Is Installing a Solar Power System Really Cost-Effective?

Does Installing a Solar Power System Help You Save Money? A detailed analysis of costs, efficiency, benefits, and important considerations to help you understand before investing.

1. Overview of Solar Power Systems

As electricity costs continue to rise and the demand for clean energy becomes more urgent, “installing solar power systems” is becoming a popular trend in Vietnam. This solution utilizes solar energy, converting it into electricity for residential or industrial use. A solar power system typically includes: solar panels, inverters, mounting structures, and connecting equipment.

Should You Install Solar Panels?
There are three common types of systems:

• • On-grid solar systems: Directly connected to the national grid without storage. Excess power can be sold to EVN (Vietnam Electricity).
  • Off-grid solar systems: Operate independently using batteries (lead-acid or lithium), suitable for areas without grid electricity.
  • Hybrid systems: Combine on-grid and battery storage for flexible usage.

See more: How to Use Solar Lights Effectively and Extend Their Lifespan

2. Is Installing a Solar Power System Truly Cost-Saving?

2.1. Initial Investment Costs

The cost depends on system capacity, equipment brand, and installation services. For a typical household:

• • 3kWp system: Around 40 – 55 million VND
  • 5kWp system: Around 60 – 85 million VND
  • 10kWp system: From 120 – 150 million VND

Factors affecting cost include:

• • Panel quality and origin (USA, Germany, Japan, China…)
  • Type of inverter (single/three-phase, hybrid or standard)
  • Labor, transportation, and accessory costs (mounts, cables, breakers…)

Although the initial investment is relatively high, it’s a long-term solution with a system lifespan of 25–30 years. Some companies offer 0% installment plans or solar leasing options to reduce the upfront burden.

2.2. Savings on Electricity Bills

Depending on the region, each kWp generates approximately 3.5 – 5 kWh/day. For example:

• • A 5kWp system generates about 20 – 25 kWh/day → 600 – 750 kWh/month
  • At an average price of 3,000 VND/kWh → savings of 1.8 – 2.25 million VND/month
    → You can recover your investment in 3–5 years. After that, every kWh is practically “free,” saving 20–30 million VND/year.

See more: How Solar Energy is Revolutionizing the Global Power Industry

2.3. Non-Financial Benefits

Besides cutting electricity costs, solar systems also offer:

• • CO2 reduction: Each 1kWp system can reduce around 1 ton of CO2/year
  • Increased property value: Homes with solar systems are rated higher in utility and aesthetics
  • Stable power supply: Especially useful when combined with batteries or in areas with frequent outages
  • Support for the national grid: During peak hours, solar power reduces pressure on the national grid

3. Factors Affecting Solar Efficiency

3.1. Installation Location & Sunlight Conditions

Solar panel efficiency depends on sunlight intensity. Central and Southern Vietnam have higher sun exposure (5–6 hours/day), making them ideal for solar energy. Northern areas can still install systems but with 10–15% lower efficiency.

3.2. Panel Orientation & Tilt Angle

Panels should face South or Southeast/Southwest at a tilt angle of 10–15 degrees (depending on location) and avoid shading from trees or buildings. Professional installers use simulation software to optimize placement.

3.3. Equipment Quality & Installation Services

• • Use panels with high efficiency (>20%) and a 25-year performance warranty
  • Inverters should be branded and support online monitoring via apps
  • Choose experienced installers with clear technical standards, warranty policies, and EVN support

4. Who Should Invest in Solar Power?

4.1. Households with High Electricity Usage

Homes with AC units, water heaters, induction cookers, and many electronics
Monthly bills from 1,000,000 VND and above

4.2. Businesses, Farms, Factories

High electricity usage during daytime (8 AM – 5 PM)
Large metal or concrete roofs to install systems of 20kWp or more

4.3. Public Facilities, Schools, Hospitals

Consistent, long-term electricity usage
Eligible for renewable energy support policies and budget savings

5. Important Notes Before Installing Solar Systems

• • Accurately calculate your power needs: Based on the last 6 months of electricity bills
  • Check your roof condition: Ensure no leaks or deterioration; the structure must be strong
  • Choose the right system capacity: Avoid over-sizing and wasting investment
  • Select a reputable provider: Look for experience, clear technical consultations
  • Consider batteries: Especially in areas prone to blackouts or for night-time usage
  • Monitor the system: Use apps to track daily output and detect issues early

6. Conclusion: Should You Install a Solar Power System?

The answer is YES, if you:

• • Want to save long-term electricity costs
  • Care about the environment and reducing CO2 emissions
  • Have a suitable rooftop and high electricity demand

See more: Discover A-Connection’s Clean Energy Solutions

Though the initial investment can be substantial, the long-term savings and environmental benefits make solar energy a smart solution for the future. As clean energy becomes the norm, investing in solar power puts you ahead in the green living trend.

If you’re considering a solar power system, contact our hotline at 0968 68 8081 for expert consultation and find the most efficient solar solution for your home!
Start your savings and green living journey today!