This decree regulates the mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power systems installed on the roofs of buildings, including residential houses, government offices, industrial parks, industrial clusters, export processing zones, high-tech zones, economic zones, production facilities, and business establishments that are invested in and constructed in compliance with legal regulations.

The direct electricity trading between organizations and individuals shall be carried out in accordance with the decree on the direct electricity trading mechanism between renewable energy generation units and large electricity consumers.

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

Policies to Encourage the Development of Self-Produced and Self-Consumed Rooftop Solar Power

One of the key highlights of Decree No. 135/2024/NĐ-CP is the policy framework to promote self-produced and self-consumed rooftop solar power. Specifically, the decree sets out nine incentive policies:

1. Exemption from Electricity Operating Licenses
   Organizations and individuals installing self-produced and self-consumed rooftop solar power systems are exempted from electricity operating licenses and are not subject to capacity limits in the following cases:
   a) Not connected to the national power grid;
   b) Equipped with anti-reverse power flow devices to prevent electricity from feeding into the national grid;
   c) Residential households and private homes with systems under 100 kW.

2. Regulations for Systems of 1,000 kW or More
   Organizations and individuals installing rooftop solar systems with a capacity of 1,000 kW or more and selling surplus electricity to the national grid must comply with power planning regulations and apply for an electricity operating license as required by law.

3. Tax Incentives
   Self-produced and self-consumed rooftop solar power systems are eligible for tax incentives as per the current tax regulations.

4. Streamlined Administrative Procedures
   Administrative procedures related to self-produced and self-consumed rooftop solar power systems will be simplified in accordance with current industry regulations.

5. No Land or Functional Adjustments Required
   Buildings with self-produced and self-consumed rooftop solar systems do not need to adjust or supplement land-use categories or building functions as per legal requirements.

6. Recognition as an Attached Asset
   Self-produced and self-consumed rooftop solar systems installed in private homes, public offices, or public-owned buildings are classified as technological equipment attached to the construction.

7. Selling Surplus Electricity (Up to 20%)
   Self-produced and self-consumed rooftop solar power systems connected to the national grid are subject to the following regulations:
   a) Vietnam Electricity (EVN) will pay organizations and individuals for the surplus electricity fed into the grid, up to 20% of the installed capacity;
   b) The purchase price for surplus electricity will be based on the average market electricity price of the previous year, as published by the system and market operator, ensuring appropriate incentives in different development phases;
   c) Rooftop solar systems installed on public offices or government-owned buildings are not allowed to sell surplus electricity.

8. Exemption from Business License Adjustments
   Residential households and private homes developing self-produced and self-consumed rooftop solar systems are exempted or do not need to adjust their business licenses.

9. Encouragement of Battery Energy Storage Systems (BESS)
   Organizations and individuals are encouraged to install energy storage systems (BESS) to ensure the safe and stable operation of the electricity system.

This decree takes effect from today (October 22, 2024).