Vietnam changes no-payment proposal to no sale of excess rooftop solar power

The Vietnamese Ministry of Industry and Trade (MoIT) has revoked a no-payment proposal for excess power from rooftop solar systems in residences and offices connected to the national grid.

It does not figure in the latest version of a draft government decree on mechanisms and policies to encourage development of self-use rooftop solar power sent to the Ministry of Justice for appraisal late May.

The proposal had attracted both criticism and support when it was put up for public feedback.

However, the new draft says that in principle, the development of self-use rooftop solar power must ensure transparency and equality; and that it cannot be bought or sold in any form.

It says self-use rooftop solar power systems can only be connected to the national grid if they have an installed capacity of over 1 MW and have remote power monitoring information systems and information connection with a regional power dispatch unit for monitoring, ensuring safe operation of the national grid.

The provincial Departments of Industry and Trade will be responsible for issuing registration certificates for rooftop solar power developers.

Notably, the draft also says that organizations and individuals who have rooftop solar power systems developed before January 1, 2021 (the expiration of the feed-in tariff (FIT) price) and are selling electricity to a power unit are not allowed to register to develop self-use rooftop solar power systems at the same location.

Those developing self-use rooftop solar power systems after December 31, 2020 until the effective date of this decree must register for development in accordance with regulations, it adds.

The approved national power development plan for the 2021-2030 period with a vision to 2050 (PDP VIII) features breakthrough policies to encourage rooftop solar power development, especially in areas at risk of electricity shortages, like the northern region. It envisions the capacity of this power source increasing by 2,600 MW during 2024-2030.

Currently, Vietnam has more than 103,000 rooftop solar power projects with combined capacity exceeding 9,500 MW. More than half of this is generated from industrial parks.