DRAFT DECREE REGULATIONS ON MECHANISMS, POLICIES TO PROMOTE THE DEVELOPMENT OF ROOFTOP SOLAR ENERGY

We bring you the latest developments regarding proposed changes in regulations governing rooftop solar energy development in Vietnam. The proposed decree addresses various aspects concerning the deployment of rooftop solar energy systems for self-consumption, excluding activities involving selling electricity to other entities and connections, whether linked or unlinked, to the national grid.

13/03/2024

DRAFT DECREE REGULATIONS ON MECHANISMS, POLICIES TO PROMOTE THE DEVELOPMENT OF ROOFTOP SOLAR ENERGY

Here are some key points highlighted in the proposed decree:

  1. Definition of Rooftop Solar Systems: The decree defines rooftop solar systems as those with capacities not exceeding 100 kW, intended for household use.
  2. Exclusion Criteria for Solar Projects: Projects falling outside the criteria mentioned above are not covered under this decree.
  3. Self-Consumption and Self-Generation: It distinguishes between self-consumption and self-generation activities, emphasizing that entities producing and consuming electricity simultaneously at the same location shall be considered self-generating.
  4. Linkage to National Grid: It delineates between systems linked and not linked to the national grid, specifying the technical requirements for grid connection. Projects connected to the national grid fall under the category of linkage, while those without such connection are classified as non-linked.
  5. Sale of Electricity to Other Entities: The decree prohibits organizations and individuals from selling electricity produced from rooftop solar systems to other entities. It emphasizes the need for compliance with legal regulations to avoid penalties.
  6. Regulatory Enforcement: Organizations and individuals involved in rooftop solar development must adhere to legal provisions. Exploiting the decree's provisions for business or selling electricity to other entities may lead to legal consequences.
  7. Registration and Declaration Obligations: Entities undertaking rooftop solar projects must register and declare relevant project details to local authorities. Construction projects involving rooftop solar installations are subject to legal regulations without the need for additional land or capacity adjustments.
  8. Encouragement and Prioritization: The proposed decree encourages transparency regarding approved rooftop solar capacities and prioritizes projects linked to the national grid, especially for enterprises engaged in exporting goods to international markets committed to renewable energy.

Please note that these proposed changes are subject to further review and input from relevant government bodies. We will continue to keep you updated on any developments regarding this decree.

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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