The Government has just issued Decree No. 135/2024/ND-CP dated October 22, 2024, stipulating mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power. This Decree stipulates mechanisms and policies to encourage the development of self-produced and self-consumed solar power installed on the roofs of construction works including: Housing, offices, industrial parks, industrial clusters, export processing zones, high-tech zones, economic zones, production facilities, and business establishments invested and constructed in accordance with the provisions of law.
Direct electricity trading between organizations and individuals is carried out in accordance with the Decree on the mechanism for direct electricity trading between renewable energy power generation units and large electricity users.
Thus, the Decree has an expanded scope of application to all subjects such as houses, offices, industrial parks, industrial clusters, export processing zones, high-tech zones, economic zones, production establishments, and business establishments invested and built nationwide.
Policy to encourage the development of self-produced and self-consumed rooftop solar power:
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One of the notable contents of Decree No. 135/2024/ND-CP is the policy to encourage the development of self-produced and self-consumed rooftop solar power. Specifically, the Decree stipulates 9 incentive policies:
1. Organizations and individuals installing self-produced and self-consumed rooftop solar power are exempted from electricity operation licenses and have no limit on installed capacity in the following cases:
1.1. Not connected to the national power system.
1.2. Installing an anti-backflow device system into the national power system.
1.3. Households and individual houses develop self-produced and self-consumed rooftop solar power with a capacity of less than 100 kW.
2. Organizations and individuals installing self-produced and self-consumed rooftop solar power with an installed capacity of 1,000 kW or more and selling surplus electricity to the national power system, carry out procedures on electricity planning and request a license to operate electricity according to the provisions of law.
3. Self-produced and self-consumed rooftop solar power enjoys preferential tax policies according to the provisions of current tax law.
4. Self-produced and self-consumed rooftop solar power has its administrative procedures shortened according to current specialized laws.
5. Construction works installing self-produced and self-consumed rooftop solar power do not have to adjust or supplement energy land and functions according to the provisions of law.
6. Self-produced and self-consumed rooftop solar power of households and individual houses; offices and works identified as public assets are identified as technological equipment attached to construction works.
7. Self-produced and self-consumed rooftop solar power connected to the national power system within the capacity scale according to the planning and implementation plan and self-produced and self-consumed rooftop solar power connected to the national power system of households and individual houses with a capacity of less than 100 kW, if not fully used, can be sold to the national power system but not exceeding 20% of the actual installed capacity as follows:
7.1. Vietnam Electricity Group shall pay organizations and individuals for the surplus electricity output to the national power system but not exceeding 20% of the actual installed capacity
7.2. The price for buying and selling surplus electricity to the national power system is equal to the average market electricity price in the previous year announced by the power system and electricity market operator to ensure appropriate incentives in each development period of the national power system.
7.3. Self-produced, self-consumed rooftop solar power installed on the roof of a construction work that is an office or a work identified as a public asset does not purchase or sell surplus electricity.
8. Households and individual houses that develop self-produced, self-consumed rooftop solar power are exempted from or do not have to adjust their business licenses.
9. Organizations and individuals are encouraged to decide to install a battery storage system (BESS) to ensure safe and stable operation of the power system.
The Decree takes effect from October 22, 2024./.
