Vietnam ministry retains no-payment plan for excess rooftop solar power

The Ministry of Industry and Trade has retained last year’s proposal that excess power from rooftop solar systems in residences and offices be connected to the national grid without payment.

A draft decree on rooftop solar power development released by the ministry to collect public feedback says that this type of electricity may or may not be connected to the national grid and may not be sold to other organizations or individuals. Its capacity is estimated at about 2,600 MW by 2030.

According to the draft, rooftop solar power, if not connected to the grid, will be developed without limit. Organizations and individuals are, therefore, encouraged to install storage systems for use in production and business. Owners can contribute any excess power to the national grid run by state utility Vietnam Electricity (EVN), but with no payment.

The draft limits installed capacity for self-use rooftop solar power systems. It requires that the registered installed capacity is based on actual household needs and electricity consumption. At the time of registration, the capacity of the rooftop solar power system must be lower than the household's demand.

For projects with a capacity of over 500 kW, households must install a remote control system connected to a regional dispatch unit.

The total installed capacity of self-use rooftop solar power must not exceed the allocation for each area or region. By 2030, the maximum capacity will reach 1,110 MW in the southern region, 927 MW in the north and 60 MW in the central and Central Highlands regions.

This measure will prevent rooftop solar power from growing beyond the planned capacity and affecting the source structure and electricity system operation, the ministry has explained.

While it had proposed earlier that investors not be required to apply for investment plan approval or set up projects under the Law on Electricity and the Investment Law, the draft requires all investors to register with the Department of Industry and Trade of the locality whether or not the project is connected to the power grid.

The draft says that the government will prioritize budget allocation for developing self-producing and self-consuming rooftop solar power systems at administrative agencies and public service units. These works will be treated as public assets.

By the end of 2022, rooftop solar power capacity had reached about 9,000 MW, with a selling price of 8.38 U.S. cents per kWh according to Decision 13/2020. At the end of July 2023, about 1,000 of these power systems with a combined capacity of 400 MW were waiting to be added to the national power development plan.