Policy encouraging the development of rooftop solar power for self-production and self-consumption in Vietnam from October 22, 2024

Policy encouraging the development of rooftop solar power for self-production and self-consumption in Vietnam from October 22, 2024 (Image from the internet)

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

Policy encouraging the development of rooftop solar power for self-production and self-consumption in Vietnam from October 22, 2024

According to Article 8 of Decree 135/2024/ND-CP, the policy to encourage the development of self-produced, self-consumed rooftop solar power in Vietnam is stipulated as follows:

(1) Organizations and individuals installing self-produced, self-consumed rooftop solar power are exempt from electricity operation licenses and have no limit on installation capacity in the following cases:

- Not connected to the national grid;

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

- Households, separate houses developing self-produced, self-consumed rooftop solar power with a capacity below 100 kW.

(2) Organizations and individuals installing self-produced, self-consumed rooftop solar power with an installation capacity of 1,000 kW or more and selling surplus electricity to the national grid must comply with power planning procedures and apply for an electricity operation license according to the legal regulations.

(3) Self-produced, self-consumed rooftop solar power enjoys favorable tax policies in accordance with current tax laws.

(4) Self-produced, self-consumed rooftop solar power benefits from simplified administrative procedures according to current specialized legislative provisions.

(5) Buildings with self-produced, self-consumed rooftop solar power installations are not required to adjust or supplement energy land use and function according to legal regulations.

(6) Self-produced, self-consumed rooftop solar power of families, separate houses, public offices, and works identified as public assets are identified as technological devices attached to construction works.

(7) Self-produced, self-consumed rooftop solar power connected to the national grid falls under the scale capacity planning and execution planning, and self-produced, self-consumed rooftop solar power with a capacity below 100 kW of families, single houses connected to the national grid, if not fully used, can sell excess to the national grid but not exceeding 20% of the actual installed capacity as follows:

- Vietnam Electricity pays organizations and individuals for the surplus electricity fed into the national grid but not exceeding 20% of the actual installed capacity;

- The purchase price for surplus electricity fed into the national grid equals the average electricity market price in the preceding year as announced by the electricity and 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 the roofs of public office buildings or works identified as public assets does not sell surplus electricity production.

(8) Families, single houses developing self-produced, self-consumed rooftop solar power are exempt from or do not need to adjust their business licenses.

(9) Organizations and individuals are encouraged to decide independently to install energy storage systems (BESS) to ensure the safe and stable operation of the electricity system.

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

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE