The impact of rooftop solar power systems on businesses

In today’s business environment, renewable energy, particularly solar power, is emerging as an essential trend. With numerous outstanding benefits, adopting solar power systems not only helps businesses save on costs but also offers significant additional impacts.

Advantages of Solar Power Systems for Businesses

Installing a solar power system can significantly reduce a business’s monthly electricity expenses, increasing profitability. With solar power, businesses can cut their energy costs by 15-25%, representing substantial savings that enhance business efficiency and boost profit margins.

Using green energy saves costs and demonstrates corporate social responsibility, enhancing the business’s reputation and attracting customers. A study in Spain has shown that companies need to undertake strong and specific green initiatives to influence customer purchasing decisions. Communicating about green efforts without concrete actions may lead to a negative backlash.

Owning a solar power system enables businesses to manage their energy needs more proactively, significantly reducing pressure on the national grid. By investing in solar energy, businesses ensure energy independence and play a critical role in supporting the broader energy infrastructure.

Rooftop solar power systems bring numerous essential benefits to businesses by cutting energy costs and helping them meet stringent carbon reduction requirements. The government has approved the National Power Development Plan for 2021–2030 with a vision to 2050, aiming for Net-Zero emissions by 2050. This strong push towards renewable energy development has opened up many business opportunities.

Notably, the recently approved Decree No. 80/2024/ND-CP provides specific regulations on direct power purchase agreements. This allows businesses to directly buy and sell electricity from production sources through private lines or the national grid, with prices based on actual supply and demand. This policy not only fosters transparency and fair competition in the energy sector but also accelerates the green transition in businesses, making it easier for them to access renewable energy sources.

Furthermore, with the EU’s Carbon Border Adjustment Mechanism (CBAM), businesses exporting to the EU market must meet carbon emission standards. Installing a 1MWp solar power system can help businesses reduce CO2 emissions by 860.15 tons annually, meeting strict emission reduction requirements. This becomes even more critical as many multinational corporations have committed to using 100% renewable energy and require their supply chain partners to meet this standard.

Impacts of a rooftop solar system on the manufacturing business that owns it

Businesses Partnering with Vu Phong Energy on the Green Transition

Vinamilk

Vinamilk, one of Vietnam’s largest dairy companies, sets a powerful example of how businesses can leverage solar energy to enhance operations and contribute to environmental sustainability. By partnering with Vu Phong Energy Group, Vinamilk has installed rooftop solar systems with a capacity of 3.39 MWp at the Mega Vinamilk Factory and 1 MWp at the Vietnam Beverage Factory. These installations have significantly reduced electricity costs and carbon emissions. Notably, the Vietnam Beverage Factory achieved carbon neutrality for Scope 1 and 2 greenhouse gas emissions in 2022, certified by BSI.

Vinamilk’s two solar power systems were developed by Vu Phong Energy Group

Kem Nghia (Nghia Nippers Corporation) – 2.23 MWp – Cu Chi

The rooftop solar project at Kem Nghia’s Cu Chi factory, with a capacity of 2.23 MWp, exemplifies a business’s shift to green energy. The system utilizes 3,720 high-efficiency Canadian 600Wp solar panels, 16 SMA 110kW inverters, and high-quality supporting structures and wiring designed for over 30 years of durability. This system can generate more than 3,200 MWh of electricity annually, reducing over 2,300 tons of CO2 emissions yearly—the equivalent of planting over 38,800 trees in 10 years. This move not only cuts energy costs but also demonstrates Kem Nghia’s commitment to sustainable development and contributes to Vietnam’s Net-Zero target by 2050.

The solar power system in Kem Nghia is implemented by Vu Phong Energy Group as an EPC general contractor

Duy Tan Plastics – 2.17 MWp – Binh Duong

The rooftop solar system at Duy Tan Plastics in Binh Duong, with a capacity of 2.17 MWp, produces over 3,000,000 kWh of electricity annually, reducing over 2,000 tons of CO2. This is a critical step in Duy Tan Plastics’ emission reduction and sustainable development strategy, especially after achieving ISCC PLUS certification in November 2022. Collaborating with Vu Phong Energy Group and partners through the PPA power purchase model, this system not only reduces energy costs but also strengthens Duy Tan Plastics’ commitment to using renewable energy and protecting the environment.

Rooftop solar power system of Duy Tan Plastics enterprise developed by Vu Phong Energy Group

Solar energy systems offer numerous benefits to businesses, including cost savings, enhanced brand image, increased asset value, and energy stability and independence. Businesses should consider investing in solar power systems to reap long-term benefits while contributing to environmental protection and improving their competitive edge in the market.