The Regulations on mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power

This Decree regulates mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power installed on the roofs of construction works including houses, offices, industrial parks, industrial clusters, export processing zones, high-tech zones, economic zones, production establishments, and business establishments invested and constructed in accordance with the provisions of law.

The direct electricity trading between organizations and individuals is carried out according to the Decree on the mechanism of direct electricity trading between renewable energy power generation units and large electricity users.

The Decree has an expanded scope of application for all subjects including houses, offices, industrial parks, industrial clusters, export processing zones, high-tech zones, economic zones, production establishments, and business establishments invested and built nationwide.

The Decree No. 135/2024/ND-CP stipulates 9 incentive policies as follows:

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: Not connected to the national power system; installing an anti-backflow device system into the national power system; households and individual houses developing 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 power planning and request a power operation license 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 with self-produced and self-consumed rooftop solar power installed 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, 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 the plan for implementing the planning 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:

- Vietnam Electricity Group shall pay organizations and individuals for the surplus electricity output generated to the national power system but not exceeding 20% ​​of the actual installed capacity;

- The purchase and sale price of surplus electricity generated 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.

- Self-produced and 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 that does not trade in excess electricity output.

8. Households and individual houses that develop self-produced and 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 energy storage system (BESS) to ensure safe and stable operation of the power system.

This Decree takes effect from the date of signing