The City of Ho Chi Minh Plans to Invest 650 Billion VND in Solar Panels for Government Buildings

As of May 16th, in a press conference, Mr. Nguyen Phuong Duy, Deputy Head of the Trade Management Department, announced that the Department of Industry and Trade has finalized the draft proposal for Phase 1 of the solar roof installation project for public offices, which will be presented to the Ho Chi Minh City People's Committee for approval.

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Ho Chi Minh City authorities plan to install rooftop solar panels across 440 government offices, with a total estimated capacity of 43.312 MWp.

With an investment of 650 billion VND, the project includes 65 military units (5.4 MWp), 72 police units (6.529 MWp), 57 key hospitals (9.588 MWp), and 246 offices of departments, branches, People’s Committees of districts, and other units (21.795 MWp).

The payback period for the rooftop solar systems is estimated to be 5-7 years, based on the reduction in electricity costs for these government offices. Considering the lifespan of the solar panels is over 20 years, the investment in rooftop solar is a financially sound decision.

Ho Chi Minh City has already piloted rooftop solar installations in some offices. For example, the Department of Industry and Trade installed a 21kWp system with an investment of 550 million VND. Their electricity bill decreased from 344.4 million VND in 2020 to 199.7 million VND in 2021 and further to 214 million VND in 2022, resulting in average annual savings of 130 million VND.

Similarly, the People’s Committee of District 3 installed a 31.04kWp system with an investment of 750 million VND, resulting in annual savings of 93 million VND in electricity costs.

Moving forward, the city aims to replicate these successful pilots across all 440 government offices, promoting the use of clean energy and reducing electricity costs.

Vỉa hè Quận 1

In a separate development, the authorities in District 1, Ho Chi Minh City, have introduced a pilot program to allow businesses to rent sidewalk space for commercial activities. In just one week, 92 businesses have registered, with expected revenue of over 431 million VND and a total registered sidewalk area of 747m2.

Representative of District 1’s People’s Committee shares the results of the pilot sidewalk rental program.

So far, 30 businesses have been approved by the Ward People’s Committee, and 17 have paid fees totaling more than 84 million VND. The district has also implemented a software application for registration and management of temporary sidewalk use, providing valuable data on citizen demand.

According to the analysis by the District 1 authorities, citizens are supportive of the fee-based registration system. They agree with the set fees and are happy to have a more organized process for arranging furniture and designing business models on the sidewalks. This is especially beneficial for serving the high demand for sidewalk services from domestic and international tourists.

“Based on the pilot results, District 1 will work on improving the application and expanding the model to other eligible streets, as well as enhancing the software’s functionality during the trial period,” shared Mr. Nguyen Thanh Phat, Head of Urban Management, District 1.