Rooftop solar power can be connected to Vietnam national grid but not paid: draft decree

Vietnamese households with their own rooftop solar power systems will be able to contribute any excess power to the national grid run by state utility Vietnam Electricity (EVN), but with no payment, according to a new draft decree by the Ministry of Industry and Trade.

EVN will record the output, and in return, their rooftop power systems will be connected to the national grid for stable operation. This will create convenience and save costs for residents, the ministry said, noting that developers should carefully calculate the installed capacity, minimizing excess electricity that could go to waste.

Small households and companies usually need VND40-50 million ($2,060) for a 1-3 kW rooftop solar power system. The cost can double if they install storage equipment.

"The government encourages the development of rooftop solar power for self-use, meaning not selling or providing electricity for the system," the draft decree states.

Off-grid rooftop solar power will be encouraged to develop without limitation but developers must comply with construction and environmental regulations.

According to the MoIT, developing self-consuming rooftop solar power will reduce pressure on the electricity industry. According to the newly approved Power Development Plan VIII, this source will have a capacity of 2,600 MW by 2030. Therefore, when the capacity exceeds this milestone, it will affect the source structure and safe operation of the power system. At that time, residents will have to invest in electricity storage systems when rooftop solar power is not connected to the grid, thus increasing initial investment costs.

The ministry proposed a number of policies to prioritize the development of self-consuming solar power. Developers will not have to apply for investment plan approval or devise a project according to the Electricity and Investment laws. But they will still have to comply with regulations on construction, the environment, and fire prevention.

Such projects will also enjoy preferential policies on taxes, fees and charges. State agencies are also prioritizing budget allocation for rooftop solar power development.

Vietnam has about 200 MW in total capacity of rooftop solar power systems installed in the past three years.

In mid-2023, the MoIT proposed to the government that self-produced, self-consuming rooftop solar power developers not be allowed sell electricity to other organizations or individuals.

Rooftop solar power systems installed in industrial parks, export processing zones and factories as well as renewable power systems should not be linked to the national grid. The ministry affirmed that it only encourages self-consuming rooftop power in offices and homes.