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The Government has recently introduced Decree No. 135/2024/ND-CP, effective October 22, 2024, to promote the development of rooftop solar power systems for self-production and self-consumption. This decree outlines mechanisms and policies aimed at encouraging various sectors, including residential, commercial, and industrial facilities, to install solar power systems on their rooftops. The scope of this decree is extensive, covering houses, offices, industrial parks, export processing zones, high-tech zones, and other construction works that comply with legal requirements.
One of the significant aspects of this decree is the promotion of self-produced and self-consumed rooftop solar power. The decree specifies nine key incentive policies designed to facilitate this initiative. Firstly, individuals and organizations that install rooftop solar systems will be exempt from needing electricity operation licenses and will face no limits on installed capacity if certain conditions are met. These conditions include not being connected to the national grid and having an anti-backflow system in place. Additionally, households that install solar systems with a capacity under 100 kW are also exempt from licensing requirements.
For larger installations of 1,000 kW or more, where surplus electricity is sold back to the national power system, there will be a requirement to adhere to power planning procedures and obtain the necessary power operation licenses.
Furthermore, those engaged in self-production and self-consumption of solar energy will benefit from preferential tax policies and simplified administrative procedures. Importantly, constructions equipped with rooftop solar systems will not be required to adjust their energy land and functional designations as stipulated by existing laws.
The decree also specifies that rooftop solar systems installed by households and individual houses, as well as public asset constructions, will be regarded as technological equipment linked to the buildings. If a household’s solar system connected to the national power grid generates excess electricity, they may sell up to 20% of their installed capacity back to the national power system. Vietnam Electricity Group will compensate these organizations and individuals based on the average market electricity price from the previous year.
Moreover, households installing rooftop solar systems will not need to adjust their business licenses. The decree encourages the installation of battery energy storage systems to ensure stable and safe operation of the power system. Overall, Decree No. 135/2024/ND-CP represents a significant step towards promoting renewable energy sources and enhancing energy independence through self-produced and self-consumed rooftop solar power systems in Vietnam. |
