Covid 19 has deranged the world’s course of development. Almost all business sectors have became paralyzed, like banks now have more than enough money for loans, investors silently observe as the market sunk in the red digits.
Solar Energy remains “safe” in this Covid 19 storm
According to an independent research of the Vietnam National Economics University, if the Covid-19 pandemic lasts until the end of June, September or the end of the year, the proportion of Vietnamese enterprises will be as 6,1% maintaining, 19,3% scale reduction and 39,3% filling for bankruptcy.
With the above-mentioned figures, the stock investment channel is now considered to be quite risky as Vietnam’s economy, just like many countries in the world, drowns in red digits. Meanwhile, the aftermath of Covid 19 forced some countries to enforce “shut and lock down” to limit the outbreak of Corona virus again. Therefore, trading will be strongly affected until an official cure of vaccine is invented.
This resulted the downturn of the entire real estate investment channel, especially with the real estate segment of resorts, leasing and rentals due to the general influence of Vietnam’s tourism market. As such, sending money to traditional investment channels is considered to be quite “risky” even if Vietnam can control the outbreak of Covid 19.
Meanwhile, people still have their daily activities and depend on electricity more than ever. Mr. Bui Trung Kien – Deputy General Director of Vietnam Electricity, Ho Chi Minh City (EVNHCMC) – stated that the use of electricity for daily life increased more than previous years due to the epidemic impact, causing students to leave school for a long time and people are scared to leave home. Vietnam Electricity (EVN) indicated that the amount of electricity consumed nationwide in March 2020 increased by 8.55% over the same period last year, of which Hanoi increased by 17% and Ho Chi Minh City by 13%. compared to the same period in 2019.
Thus, if investing in solar power, people could save a considerable amount of expenses during the “isolation” period because of Covid epidemic 19. Recently, the Prime Minister also issued Decision 13/2020 / QD-TTg on the incentive program to encourage development of solar energy in Vietnam (also known as Decision 13), “finalizing” the buyback rate of PV rooftop as VND 1,943 / kWh, applied to all commerical operating systems after June 30, 2019 until December 31, 2020. The decision was issued right in the “heart of the storm” of Covid 19, has made many investors to have more confidence to invest in this clean energy segment.
Solar Investment: Viet-Mades on the rise
As the Covid 19 epidemic is getting more complicated, many countries have limited customs clearance, solar power enterprises with manufacturing plants in Vietnam have the “home-field” advantage to serve their domestic consumers. Representative of Bach Khoa Solar Energy Company (SolarBK), Ms. Nguyen Ngoc Quynh – Chief Business Officer confimed: “As many of the solar panels are imported from abroad, the restriction on trade certainly has made the PV market getting “hotter” this season. To meet the need of many customers, in March 2020, BigK solar power solution has launched two new product lines, BigK Basic and BigK Advance. With the new purchase price from the Government, a household that installed a system of 4 kWp BigK Basic will earn its breakeven point in about 4.7 years, compared with a period of 4.9 years in 2019. ”
This is considered to be a safe and effective investment channel as Vietnam is entering the peak of dry season. According to SolarBK distributors, after announcing the latest price of electricity, many interested customers have called to learn about BigK solution. Even more confident as they discover this is a Vietnamese brand’s solution, with a factory based in the country, solving the problem of product and system warranty during this outbreak.
Mr. Nguyen Dinh Chien of Tan Binh District, Ho Chi Minh City, is one of the customers participating in the promotion “Energy Gathering, Love Radiating” of BigK solution, said: “Been known of solar power for a while but until the government confirmed the price of solar energy buyback rate, and with the electricity costs are high during the epidemic season, so I decided to install it. I have also heard that EVN will reduce electricity prices by 10% during the season, applying for usage less than 300 kWh / month. My family uses on average 600 kWh of electricity, so with this BigK 3kWp solution package, I hope that next month it will reduce more than 300 kWh, the rest will be reduced from the Government. After considering many providers, I decided to choose BigK because it is a Viet-Made product, comes with a manufacturing factory in Vietnam that are fullly internationally certified, it is still reassuring as the outbreak is getting tougher. ”
BigK solution is also one of a few Vietnamese brands that accompanies the Government and its country to overcome the Covid 19 pandemic. Understanding the people’s difficulties nationwide, SolarBK offers a 10% discount program as customer install the BigK solar power system from now till the end of April 25, 2020. “Covid 19 forced people to distance from one another, but brought together the entire nation. Right now, I see a Vietnam that is united, all together to love and support one another. Our factory is still working continuously, complying with regulations and safety standards during the season to promptly supply a large number of solar panels all over the country, always prepare to bring the effective timely solution to the people of Vietnam. ” – Ms. Quynh also shared.
According to Decision 13, only less than 8 months from now for the people to receive the electricity selling price of VND 1.943/ kWh (8,38 Uscent/kWh). Taking from other countries, indicated that the buyback rate will decrease as solar power becomes more popular. While the end of Covid 19 outbreak remains unknown, this is considered an appropriate time to invest in this clean energy source.