Vietnam allows 20% offtake from self-use rooftop solar power installations

Vietnam has officially permitted excess output from rooftop solar power systems to be connected to the national grid at no more than 20% of installed capacity.

The permission is mentioned in Decree 135/2024/ND-CP on self-use rooftop solar power development that the government issued on Tuesday with immediate effect.

Excess power generated by self-use rooftop solar installations with a capacity of less than 100 kW can be sold to state-owned Vietnam Electricity (EVN) at a price equivalent to the average rate of the previous year, the decree says.

It also allows persons and organizations including households and single homes to install under-100-kW self-use rooftop solar power systems without an electricity operation license, provided that they are not connected to the national grid.

For installations with a capacity of 1,000 kW or more, the sale of excess electricity to the national grid has to undergo power planning procedures and obtain an electricity operation license.

Self-use rooftop power installations are eligible for current tax incentives and simplified administrative procedures, the decree adds.

Households and single homes that install self-use rooftop solar power systems are exempt from the requirement to obtain or modify a business license.

The direct trading of solar power between organizations and individuals should follow the direct power purchase agreement mechanism (DPPA), introduced by the government early July this year.

Vietnam currently has about 103,000 rooftop solar power projects with a total installed capacity of more than 9,500 MW.

According to the national power development plan for the 2021-2030 period with vision until 2050 (PDP VIII), the capacity of solar power connected to the national grid will increase by 2,600 MW by 2030.