Vietnam lacks legal framework to incentivize rooftop solar energy for self-consumption: ministry

By Anh Minh
Sat, November 4, 2023 | 1:30 pm GMT+7

The Ministry of Industry and Trade says rooftop photovoltaic solar power works meant for self-consumption only are yet to be incentivized because a relevant legal framework does not exist.

A draft decree prepared by the ministry says that rooftop solar energy works not connected to the national grid and power generated from photovoltaic (PV) panels on the roof of warehouses and factories in industrial parks will be regulated by other mechanisms like direct power purchasing agreements (DPPA).

Vietnam is at a crossroad of rooftop solar development. Photo courtesy of Tien Phong (Pioneer) newspaper.

Vietnam is at a crossroad of rooftop solar development. Photo courtesy of Tien Phong (Pioneer) newspaper.

It elaborated that the “self-production, self-consumption” term is not defined in any electricity-related regulations. The ministry will therefore clarify its definition when the Law on Electricity is amended in the future.

The National Power Development Plan VIII for the 2021-2030 period, widely known as PDP8, approved by the prime minister in May this year, states that solar energy for self-consumption that is not connected to the national transmission grid can be developed without limits.

Meanwhile, the ministry’s latest draft decree regulates incentives for rooftop solar power works on residential and office buildings, connected to the national grid via agreements and not sold to a third party, are eligible for government incentives.

It notes that rooftop solar power is a clean energy source that helps ensure supply and reduce emissions.

Adam Sitkoff, executive director of AmCham Hanoi, told The Investor that they have asked for government support to allow companies to implement renewable energy solutions for self-consumption that are not connected to the power grid, arguing that “this is the most timely means of managing demand through the power shortages.”

Some 200 megawatts of rooftop solar power have been developed in Vietnam over the past three years.

PDP8 envisions that 2,600 MW of rooftop solar power will be developed by 2030, with up to 50% of office buildings and residential buildings having such installations.

The ministry had earlier proposed state-management of rooftop solar projects meant for self-consumption, saying this was required to prevent uncontrolled development and ensure compliance with the master plan.

Comments (0)
  • Read More
Vietnam, France sign energy, mineral cooperation deals

Vietnam, France sign energy, mineral cooperation deals

Vietnamese and French agencies signed two cooperation documents in energy and minerals in Paris on Tuesday (local time).

Economy - Wed, June 11, 2025 | 12:19 pm GMT+7

Spain willing to cooperate with Vietnam in high-speed railway development: Spanish PM

Spain willing to cooperate with Vietnam in high-speed railway development: Spanish PM

Spain, which boasts the world's second-longest high-speed railway system, is ready to cooperate and share expertise with Vietnam in this field, said Spanish Prime Minister Pedro Sanchez.

Infrastructure - Wed, June 11, 2025 | 11:02 am GMT+7

Vietnam's leading construction materials maker Viglacera projects 21% revenue hike in 2025

Vietnam's leading construction materials maker Viglacera projects 21% revenue hike in 2025

Viglacera, Vietnam's leading producer of building materials, targets VND14.44 trillion ($555.12 million) in revenue for 2025, up 21% from last year.

Companies - Wed, June 11, 2025 | 10:38 am GMT+7

Vietnam’s first LNG power plants to begin commercial operation this year

Vietnam’s first LNG power plants to begin commercial operation this year

Nhon Trach 3 and 4, Vietnam’s first LNG-fired power plants, are expected to begin commercial operations this year, according to a new ministerial decision.

Energy - Wed, June 11, 2025 | 10:00 am GMT+7

Europe-Asia Industry Cooperation Forum to take place in Hanoi today

Europe-Asia Industry Cooperation Forum to take place in Hanoi today

The Vietnam's Association of Foreign Invested Enterprises (VAFIE), in association with F&H International Industry, will organize the Europe-Asia Industry Cooperation Forum in Hanoi today.

Economy - Wed, June 11, 2025 | 7:30 am GMT+7

Thailand's SCG Packaging becomes sole owner of Vietnam's leading plastics firm Duy Tan

Thailand's SCG Packaging becomes sole owner of Vietnam's leading plastics firm Duy Tan

SCG Packaging Public Company Limited (SCGP), a subsidiary of Thailand's multi-sector giant SCG, has acquired an additional 30% stake at Duy Tan JSC, becoming the sole owner of the leading producer of rigid plastic packaging products in Vietnam.

Companies - Tue, June 10, 2025 | 10:53 pm GMT+7

VinaCapital fully divests from Vietnam’s private hospital chain Tam Tri

VinaCapital fully divests from Vietnam’s private hospital chain Tam Tri

The Vietnam Opportunity Fund (VOF), managed by VinaCapital, has announced its full divestment from local hospital chain Tam Tri Medical, according to a filing with the London Stock Exchange.

Finance - Tue, June 10, 2025 | 4:43 pm GMT+7

CapitaLand breaks ground on its first luxury low-rise project in northern Vietnam

CapitaLand breaks ground on its first luxury low-rise project in northern Vietnam

Singapore's CapitaLand Development (CLD) has broken ground on The Fullton, a luxury low-rise residential development with a gross development value of approximately $800 million.

Real Estate - Tue, June 10, 2025 | 4:26 pm GMT+7

Vietnam’s major affordable housing developer Hoang Quan appoints new CEO

Vietnam’s major affordable housing developer Hoang Quan appoints new CEO

Hoang Quan Real Estate Consulting-Trading-Services JSC (HoSE: HQC), a major affordable housing developer in Vietnam, has appointed Nguyen Long Trieu as its new general director, effective from Monday.

Real Estate - Tue, June 10, 2025 | 4:00 pm GMT+7

US Cargill announces exit from aquafeed business in Vietnam

US Cargill announces exit from aquafeed business in Vietnam

Cargill, one of the leading animal feed producers in the U.S., has withdrawn from the aquafeed business in Vietnam, said Maxime Hilbert, interim general manager for aqua nutrition at Cargill Thailand & Vietnam.

Industries - Tue, June 10, 2025 | 3:26 pm GMT+7

USD price likely to hit record high of VND26,300 in Q3, drop to VND26,100 in Q4: UOB

USD price likely to hit record high of VND26,300 in Q3, drop to VND26,100 in Q4: UOB

Singaporean bank UOB on Monday said its updated forecasts on the USD/VND exchange rate are VND26,300 per USD in Q3/2025; 26,100 in Q4/2025; 25,900 in Q1/2026; and 25,700 in Q2/2026.

Economy - Tue, June 10, 2025 | 2:38 pm GMT+7

Four pillars set stage for Vietnam private sector breakthrough: expert

Four pillars set stage for Vietnam private sector breakthrough: expert

The four resolutions recently issued by the Politburo, Vietnam's highest decision-making body, mark a critical turning point, opening up major opportunities for Vietnam’s private sector to thrive, said Tran Du Lich, former director of the Ho Chi Minh City Institute of Economics.

Economy - Tue, June 10, 2025 | 12:37 pm GMT+7

How Vietnam’s functional food market evolves

How Vietnam’s functional food market evolves

With the presence of major domestic and international brands, along with strong government efforts to dismantle counterfeit product rings, Vietnam's functional food market is expected to continue its upward trajectory in the coming time.

Economy - Tue, June 10, 2025 | 12:18 pm GMT+7

Visa introduces Click to Pay in Vietnam for online shopping experience 'transformation'

Visa introduces Click to Pay in Vietnam for online shopping experience 'transformation'

Visa has introduced Click to Pay with leading banks and payment facilitators in Vietnam - the first market in Southeast Asia to see the solution that aims to transform online shopping experience.

Finance - Tue, June 10, 2025 | 8:48 am GMT+7

Vietnamese banks leverage national data integration to reach customers

Vietnamese banks leverage national data integration to reach customers

Banks in Vietnam are developing fully digital lending services, enabling customers to apply for and receive loans entirely through online platforms.

Banking - Mon, June 9, 2025 | 11:28 pm GMT+7

Vietnam’s garment-textile exports top $17 bln in five months

Vietnam’s garment-textile exports top $17 bln in five months

Vietnam’s garment and textile exports exceeded $17.58 billion in the first five months of 2025, up 9% year-on-year.

Companies - Mon, June 9, 2025 | 11:21 pm GMT+7