MECHANISM TO ENCOURAGE THE DEVELOPMENT OF ROOFTOP SOLAR POWER INSTALLED IN HOUSES AND OFFICES

According to the MOIT, power supply situation from now to 2025 is forecasted to face many difficulties, especially in the Northern region. Therefore, Therefore, the timely addition of rooftop solar power sources, self-generating and self-dissipating solar power is of great significance. However, developing this type of power source still lacks breakthrough mechanisms and policies to attract investment and installation.

Implementing the task, the MOIT has researched and coordinated with other ministries and branches to complete the incentive mechanism and assess both the positive and negative aspects of the current rooftop solar power development. As a result, the MOIT has issued the Draft Mechanism with 6 Article, including:

Article 1. Scope.

Article 2. Subjects of application.

Article 3. Interpretation of terms.

Article 4. Incentive mechanism and requirements.

Article 5. Implementing Provisions.

Article 6. Effect.

(Details of the draft can be found in the attached file)

For the subjects of application in this Draft, the relevant Ministries and branches have given the following comments:

• The Ministry of National Defense: proposes to expand the installation scope of rooftop solar power systems, not only installed on roofs, offices, business head offices but also on other buildings such as schools, hospitals, production increase  works....
• Committee for Ethnic Affairs: proposes to add resorts and hotels to the subjects of application.
• Ministry of Science and Technology: recommends that the land area in 292 industrial parks across the country is also a very good area to encourage the development of solar power in Vietnam.
• Ministry of Agriculture and Rural Development: proposes to clarify the concept of housing in rural areas and add farmer households with farms, warehouses attached to houses and cooperatives to the beneficiaries of support policies.
• Ministry of Public Security: proposes to consider adding and clarifying the subjects of application are building with rooftop solar power systems installed at airports, railway stations, bus stations, seaports, ports and inland waterways...
• Ministry of Justice: requests the completion of the incentive mechanism before sending for comments, requests the drafting agency to fully review the content of the draft document as well as the legal basis to determine the appropriate form of the document and the right to issue it.

Opinions of the MOIT:

• The subject of application of this mechanism is solar power installed in houses and offices, the expansion of the subjects at the request of the ministries will be considered later.
• Propose form of mechanism promulgation is the Prime Minister's Decision.
• With the current situation of rooftop solar capacity along with the target in Power Developing Plan 8, there is no need to issue an incentive mechanism to install rooftop solar power.
• From 2021 to now, the development of rooftop solar power is mainly spontaneous for use and has not been controlled, so the MOIT will coordinate with the Provincial People's Committees and the EVN to review the situation.
• Regarding management and operation of rooftop power: in case solar power is not connected to the national grid, investors will balance the source - load on-site (mini grid). Thus, the investor needs to invest in additional power storage systems, leading to increased investment costs. Therefore, although there is a requirement not to sell electricity to other organizations and individuals and not to generate excess electricity into the national grid, during operation, rooftop solar power must still be linked to the national grid. The MOIT will coordinate with relevant agencies to ensure the development of this rooftop solar power in accordance with the Power Development Plan 8.

In conclusion, the MOIT proposes to the Prime Minister:

• Allowing self-generating, self-dissipating and self-consuming rooftop solar power to be linked to the grid (connected after power purchase meter) but not to generate power to the national grid;
• Total power generation capacity by 2030 is 2,600 MW;
• The mechanism will be issued in the form of a Prime Minister’s Decision.

View details of the Report, Draft Mechanism and ministries’ opinions at:

https://drive.google.com/file/d/1vjzGIHqw5Kwpk6HzwcQsZKTd1T1arST_/view?usp=drive_link

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For more information, please contact:

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

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