Notification No. 387/TB-VPCP on the conclusions of Deputy Prime Minister regarding the development and issuance of a decree to encourage the growth of self-produced, self-consumed rooftop solar power

Deputy Prime Minister Tran Hong Ha has directed the Ministry of Industry and Trade to take the following actions:

(i) Finalize the definition of "self-produced, self-consumed" RTS, including a provision that limits the sale of excess electricity to the grid to no more than 20% of total capacity.

(ii) Streamline procedures by: - Replacing pre-audit requirements with post-audit measures and informing authorities of the amount of electricity fed into the grid; - Requiring that self-produced, self-consumed RTS with an installed capacity between 100 kW and under 1 MW that choose to connect and sell excess electricity to the National Grid register with the local Power Company; - Those with an installed capacity of 1 MW or more connecting to and selling excess electricity to the National Grid must register as business entities;

(iii) Regarding energy storage batteries: RTS equipped with energy storage may sell 100% of their excess electricity and may be considered for application of time-of-use pricing schemes.

(iv) Regarding rooftop solar capacity: The Ministry of Industry and Trade (hashtag#MOIT), along with relevant agencies, should consider the possibility of increasing rooftop solar capacity in the Northern region to up to 7,000 MW, with a proposal to be submitted to the Prime Minister by September.

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

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