The New Policy on the Development of Rooftop Solar Power for Self-Production and Self-Consumption.

(Chinhphu.vn) – Households and individual homes developing rooftop solar power for self-production and self-consumption are exempt from or not required to adjust their business licenses.

The government has just issued Decree No. 135/2024/ND-CP dated October 22, 2024, regulating the mechanisms and policies to encourage the development of rooftop solar power for self-production and self-consumption.

This Decree outlines the mechanisms and policies to encourage the development of solar power for self-production and self-consumption installed on the roofs of buildings, including homes, offices, industrial zones, industrial clusters, export processing zones, high-tech zones, economic zones, production facilities, and business establishments that are invested and constructed in accordance with legal regulations.

The buying and selling of electricity directly between organizations and individuals is carried out according to the Decree on the mechanism for direct electricity trading between renewable energy generators and large electricity consumers.

Thus, the scope of this Decree is expanded to cover all entities including homes, offices, industrial zones, industrial clusters, export processing zones, high-tech zones, economic zones, production facilities, and business establishments across the country.

Policy to Encourage the Development of Rooftop Solar Power for Self-Production and Self-Consumption

One of the key highlights of Decree No. 135/2024/ND-CP is the policy to encourage the development of rooftop solar power for self-production and self-consumption.

Specifically, the Decree stipulates 9 policies to encourage development:

1. Organizations and individuals installing rooftop solar power for self-production and self-consumption are exempt from electricity business licenses and there is no limit on installation capacity in the following cases:

   • Not connected to the national grid;

   • Installing a system to prevent reverse power flow into the national grid;

   • Households and individual homes developing rooftop solar power for self-production and self-consumption with a capacity of less than 100 kW.

2. Organizations and individuals installing rooftop solar power for self-production and self-consumption with an installation capacity of 1,000 kW or more, and selling excess electricity to the national grid, must follow the electricity planning procedures and apply for an electricity business license in accordance with the law.

3. Rooftop solar power for self-production and self-consumption benefits tax incentives as prescribed by current tax laws.

4. Rooftop solar power for self-production and self-consumption is subject to simplified administrative procedures as per the relevant sectoral laws.

5. Buildings with rooftop solar power for self-production and self-consumption are not required to adjust or supplement energy land and functions according to legal regulations.

6. Rooftop solar power for self-production and self-consumption installed on households, individual homes, offices, and buildings considered public assets is classified as technology equipment attached to buildings.

7. Rooftop solar power for self-production and self-consumption connected to the national grid within the capacity scope as per the electricity planning, and rooftop solar power for self-production and self-consumption connected to the national grid by households or individual homes with a capacity of less than 100 kW, if unused, can be sold to the national grid but not exceeding 20% of the actual installed capacity, as follows:

   • Vietnam Electricity Group (EVN) will pay the organization or individual for the excess electricity fed into the national grid, but not exceeding 20% of the actual installed capacity.

   • The buying and selling price for excess electricity fed into the national grid is based on the average market electricity price of the previous year, as published by the electricity system operator, to ensure appropriate incentives during each development phase of the national electricity system.

   • Rooftop solar power for self-production and self-consumption installed on government buildings or public assets will not engage in the buying and selling of excess electricity.

8. Households and individual homes developing rooftop solar power for self-production and self-consumption are exempt from or not required to adjust their business licenses.

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

This Decree takes effect from October 22, 2024.