The Government has recently issued Decree No. 135/2024/ND-CP dated October 22, 2024, stipulating mechanisms and policies to encourage the development of rooftop solar power for self-production and self-consumption.
This Decree stipulates mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power systems installed on the roofs of construction works, including residential buildings, government offices, industrial parks, industrial clusters, export processing zones, high-tech zones, economic zones, production facilities, and business establishments that are invested in and constructed in accordance with the law.
The direct purchase and sale of electricity between organizations and individuals are implemented under the Decree on the mechanism for direct electricity trading between renewable energy generation units and large electricity consumers.
Thus, the Decree’s scope of application is expanded to cover all entities, including residential buildings, government offices, industrial parks, industrial clusters, export processing zones, high-tech zones, economic zones, production facilities, and business establishments nationwide.
Policies Encouraging the Development of Self-Produced, Self-Consumed Rooftop Solar Power:
One of the notable provisions of Decree No. 135/2024/ND-CP is its policies aimed at promoting the development of self-produced, self-consumed rooftop solar power. Specifically, the Decree outlines nine key policies:
- Exemption from Power Operation Licenses and No Installation Capacity Limit:
Organizations and individuals installing self-produced, self-consumed rooftop solar power are exempt from obtaining power operation licenses and are not subject to installation capacity limits in the following cases:- Not connected to the national power grid.
- Equipped with systems preventing power feedback into the national grid.
- Household or standalone residential rooftop solar systems with a capacity below 100 kW.
- Procedures for Large-Scale Installations:
Organizations and individuals installing systems with a capacity of 1,000 kW or more and selling surplus electricity to the national grid must follow power planning procedures and apply for a power operation license as per legal regulations. - Tax Incentives:
Self-produced, self-consumed rooftop solar power systems are eligible for tax incentives under current tax laws. - Simplified Administrative Procedures:
These systems benefit from streamlined administrative procedures as prescribed by current specialized legal regulations. - Construction Regulation Exemptions:
Construction projects with self-produced, self-consumed rooftop solar installations are not required to adjust or supplement land use purposes or functional changes as per legal regulations. - Asset Classification:
Rooftop solar systems installed on residential buildings, government offices, and public infrastructure are considered as technology equipment attached to construction works. - Surplus Electricity Sales to the National Grid:
- For systems connected to the national grid, surplus electricity not consumed can be sold, up to 20% of the actual installed capacity.
- Electricity Payment:
The Vietnam Electricity Corporation (EVN) pays for surplus electricity fed into the national grid, but not exceeding 20% of the installed capacity. - Electricity Purchase Price:
The purchase price for surplus electricity equals the average market electricity price of the preceding year, as announced by the power system and market operator, ensuring suitable encouragement in line with national grid development. - Public Infrastructure Exclusion:
Systems installed on government offices or public infrastructure are not permitted to sell surplus electricity.
- License Adjustments for Households:
Households and standalone residential buildings developing self-produced, self-consumed rooftop solar systems are exempt from or not required to adjust business licenses. - Encouragement of Battery Energy Storage Systems (BESS):
Organizations and individuals are encouraged to install energy storage systems to ensure the safe and stable operation of the power system.
The Decree takes effect on October 22, 2024.
Editorial Board of Vietnam Energy Magazine
Source : https://nangluongvietnam.vn/ban-hanh-co-che-chinh-sach-phat-trien-dien-mat-troi-mai-nha-tu-san-xuat-tu-tieu-thu-33310.html
