The government has just issued Decree No. 135/2024/ND-CP dated October 22, 2024, which stipulates mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power. 

This decree regulates the mechanisms and policies to promote the development of self-produced, self-consumed solar power systems installed on the rooftops of buildings, including residential houses, government offices, industrial zones, production facilities,  export processing zones, high-tech zones, economic zones, production facilities, and business establishments that are invested in and constructed by the law. 

Direct electricity trading between organizations and individuals is conducted according to the decree on direct electricity trading mechanisms between renewable energy producers and large electricity customers. 

Thus, the decree has an expanded scope of application for all entities, including residential houses, government offices, industrial zones, industrial clusters, export processing zones, high-tech zones, economic zones, production facilities, and business establishments invested in and constructed nationwide. 

Policies Encouraging the Development of Self-Produced, Self-Consumed Solar Power Systems 

One notable aspect of Decree No. 135/2024/NS-CP is the policies encouraging the development of self-produced, self-consumed solar power systems. Specifically, the decree outlines nine encouraging policies: 

1. Organizations and individuals installing self-produced, self-consumed solar power systems are exempt from electricity operation licenses and are not limited in installation capacity in the following cases: a) Not connected to the national electricity grid; b) Installing reverse current protection devices into the national electricity grid; c) Household and individual houses developing self-produced, self-consumed solar power systems with a capacity of less than 100 kW.
2. Organizations and individuals installing self-produced, self-consumed solar power systems with an installation capacity of 1,000 kW or more and selling excess electricity to the national electricity grid must complete the electricity planning procedures and apply for an electricity operation license according to legal regulations.
3. Self-produced, self-consumed solar power systems are eligible for tax incentives as stipulated by current tax laws.
4. The administrative procedures for self-produced, self-consumed solar power systems are not required to adjust or supplement land use for energy and functionally according to legal regulations.
5. Buildings equipped with self-produced, self-consumed solar power systems are not required to adjust or supplement land use for energy and functionality according to legal regulations.
6. Self-produced, self-consumed solar power systems of households and individual houses; government offices and facilities identified as public assets are considered technological equipment attached to the building.
7. Self-produced, self-consumed solar power systems connected to the national electricity grid that comply with planning scales and plans, and those connected by households and individual houses with a capacity of less than 100 kW, if not fully utilized, can sell excess electricity to the national grid but not exceeding 20% of the actual installed capacity as follows: a) Vietnam Electricity Group (EVN) will pay organizations and individuals for excess electricity fed into the national grid, but not exceeding 20% of the actual installed capacity; b) the purchase price of excess electricity fed into the national grid is based on the average market electricity price in the previous year published by the electricity system operator and electricity market to ensure appropriate incentives during each development period of the national electricity system; c) Self-produced, self-consumed solar power systems installed on government office buildings or identified public asset facilities will not engage in the scale of excess electricity.
8. Households and individual houses developing self-produced, self-consumed solar power systems are exempt from or not required to adjust their business licenses.
9. Organizations and individuals are encouraged to independently decide to install battery energy storage systems (BESS) to ensure the safe and stable operation of the electricity system. 

The decree takes effect on October 22, 2024. 

Source: Government News