03 Acts violating regulations on operation of rooftop solar power in Vietnam

03 Acts violating regulations on operation of rooftop solar power in Vietnam (Image from the internet)

On October 22, 2024, the Government of Vietnam issued Decree 135/2024/ND-CP outlining the mechanisms and policies encouraging the development of self-produced, self-consumed rooftop solar power in Vietnam.

Regulations on the Authority and Conditions for Granting Development Registration Certificates for Solar Power in Vietnam

To be specific, Decree 135/2024/ND-CP stipulates the mechanisms, and policies encouraging the development of self-produced, self-consumed solar power installed on the rooftops of construction works including residential houses, public offices, industrial parks, industrial clusters, export processing zones, high-tech areas, economic zones, production establishments, and business establishments invested and built according to legal compliance.

Notably, Article 5 of Decree 135/2024/ND-CP provides regulations on prohibited actions in the development and operation of self-produced, self-consumed rooftop solar power as follows:

(1) Developing self-produced, self-consumed rooftop solar power non-compliant with this Decree.

(2) Constructing, installing, and operating capacity exceeding the notified capacity or the authorized capacity as per the registration certificate issued by the competent authority for self-produced, self-consumed rooftop solar power connected to the national grid.

(3) Organizations and individuals not complying with dispatch orders from the relevant power system control levels.

09 Policies Encouraging the Development of Self-Produced, Self-Consumed Rooftop Solar Power in Vietnam

According to Article 8 of Decree 135/2024/ND-CP, policies encouraging the development of self-produced, self-consumed rooftop solar power are outlined as follows:

(1) Organizations, individuals installing self-produced, self-consumed rooftop solar power are exempt from electricity operation permits and are not limited in installation capacity in the following cases:

- Not connected to the national grid;

- Installed with systems preventing the reverse flow of electricity into the national grid;

- Household, private residences developing self-produced, self-consumed rooftop solar power with a capacity under 100 kW.

(2) Organizations, individuals installing self-produced, self-consumed rooftop solar power with an installation capacity starting from 1,000 kW or more and selling excess electricity into the national grid shall carry out power planning procedures and apply for electricity operation permits according to legal regulations.

(3) Self-produced, self-consumed rooftop solar power enjoys tax incentives according to current tax law.

(4) Self-produced, self-consumed rooftop solar power has simplified administrative procedures per current specialized legal provisions.

(5) Construction projects installing self-produced, self-consumed rooftop solar power are not required to adjust or supplement energy land and utility according to the law.

(6) Self-produced, self-consumed rooftop solar power of households, private residences; public offices, and projects identified as public assets are determined as technology equipment attached to construction projects.

(7) Self-produced, self-consumed rooftop solar power connected to the national grid under the scale of capacity according to plans, and those of households, private residences with a capacity under 100 kW, if not entirely used, can sell surplus to the national grid, but not exceeding 20% of actual installed capacity as follows:

- Vietnam Electricity Group pays organizations, individuals for the surplus electricity fed into the national grid but not more than 20% of actual installed capacity;

- The purchase price of surplus electricity fed into the national grid equals the average market electricity price of the preceding year announced by the power and electricity market operation unit to ensure appropriate encouragement during each development phase of the national grid system.

- Self-produced, self-consumed rooftop solar power installed on public office roofs or determined as public assets is not subject to buying and selling the surplus electricity.

(8) Households, private residences developing self-produced, self-consumed rooftop solar power are exempt from or not required to adjust business licenses.

(9) Encouragement for organizations, individuals to decide on the installation of energy storage systems (BESS) to ensure safe and stable power system operations.

More details can be found in Decree 135/2024/ND-CP which comes into force in Vietnam from October 22, 2024.

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