Currently, there is no legal document specifically regulating rooftop solar power for self-consumption, thus lacking sufficient legal basis for organizing and implementing.
Recently, on April 15, 2024, the Ministry of Industry and Trade introduced the Draft Decree No. 1 "Regulations on the Mechanism, Policies to Promote the Development of Rooftop Solar Power for Self-Consumption" and publicly posted the full text, inviting organizations, individuals, both domestically and internationally, to study and contribute opinions on the Ministry's website.
Some notable contents of the Draft include:
Firstly, affirming the objective of rooftop solar power for self-consumption, not for sale:
Rooftop solar power for self-consumption is solar power generated for on-site consumption, not sold to other organizations or individuals, and not sold to the national grid (in the case of grid connection).
Organizations, institutions, individuals have the right to export or not export surplus electricity (if any) from rooftop solar power for self-consumption to the national grid. In cases where organizations or individuals choose to export surplus electricity to the grid, the electricity utility shall record the electricity generation at a zero-Vietnamdong price and shall not be compensated.
Secondly, the issue of controlling solar power capacity:
The total capacity of rooftop solar power for self-consumption connected to the national grid in each locality shall not exceed the allocated capacity in the national power development plan. It is strictly prohibited to invest, install, and operate capacities exceeding the approved capacity by competent authorities for rooftop solar power for self-consumption connected to the national grid.
Rooftop solar power for self-consumption not connected to the national grid shall prioritize unlimited capacity development.
Thirdly, the policies to encourage rooftop solar power for self-consumption:
Rooftop solar power for self-consumption is exempted from electricity operation permits. Construction projects installing rooftop solar power for self-consumption are not required to adjust or supplement land use and functional purposes according to legal regulations. Additionally, budget allocation prioritizes the implementation of rooftop solar power for self-consumption installation at administrative headquarters, public service units, and premises identified as state assets. Encouragement is given to organizations and individuals to integrate rooftop solar power for self-consumption with investment, installation, and operation of energy storage systems for proactive engagement in production, business, and utilization activities. Furthermore, consideration is given to prioritizing capacity development of rooftop solar power for self-consumption connected to the national grid for enterprises engaged in export-oriented production.
Fourthly, the issue of transition:
For projects and rooftop solar power systems operating before January 1, 2021, and engaging in electricity transactions with the Vietnam Electricity Group, the act of connecting to rooftop solar power for self-consumption for exploitation is strictly prohibited.
The aforementioned are the four notable contents within the Draft.
It is imperative to enact mechanisms and policies to develop rooftop solar power for self-consumption as through the development of rooftop solar power, we have the opportunity to supplement resources for the national grid, especially during peak periods, and to supplement rapidly increasing electricity demand. These policies will also contribute to reducing investment pressure from the state while efficiently exploiting and utilizing external social investment capital, essentially mobilizing external social resources for investment in electricity development to meet the country's electricity demand, thereby reducing production and consumption costs for electricity users. Furthermore, encouraging the development of this power source will help realize the goal of achieving carbon neutrality by 2050.
Despite numerous guiding documents for implementation, the progress of construction deployment and issuance of these documents has been slow to date, failing to timely meet the requirements for economic and social development as well as the needs of the people and businesses. The Ministry of Industry and Trade has been instructed by the Government's Permanent Secretariat to complete the dossier for submission to the Government before May 15th.
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