'Self-produced, self-consumed' rooftop solar power has not yet enjoyed incentives

Rooftop solar power installed in homes and offices for self-use and connection to the national grid will enjoy tax and fee incentives, while "self-produced, self-consumed" renewable electricity will not, according to the Ministry of Industry and Trade .

Draft Decree on developing rooftop solar power installed in homes and offices, stipulates policies to encourage the development of this type for self-use, connection to the national power system and not selling electricity to other organizations or individuals.

The scale of this type of development by 2030 is about 2,600 MW or reaching 50% of office buildings and houses using rooftop solar power. These systems will enjoy investment incentives in terms of taxes and fees. State agencies prioritize budget allocation to develop rooftop solar power at agencies and offices.

However, the incentive mechanism will not apply to cases where rooftop solar power is not connected to the national power system or is "self-produced and self-consumed" for sale to other organizations or individuals.

"Self-produced and self-consumed solar power, solar power on factory roofs and industrial parks will be implemented according to other mechanisms, such as direct power purchase and sale (DDPA)," said the Ministry of Industry and Trade.

Explaining this, the energy management agency stated that the concept of "self-production and self-consumption" is not currently mentioned in the electricity laws. However, in Decision 500 on the electricity planning 8 approved by the Prime Minister in May, stating that self-produced and self-consumed rooftop solar power is for on-site consumption, not sold to the national power system, not connected or linked to the national grid, then the development capacity may be unlimited.

Because self-produced and self-consumed electricity sources are not yet considered a development subject under the Electricity Law, the Ministry of Industry and Trade proposes to legalize the concept of "self-produced and self-consumed" when amending the Electricity Law in the future.

Therefore, this mechanism only encourages the development of rooftop solar power systems installed in homes and offices that are connected to the national grid (connected after the electricity meter) and will not have to negotiate a connection with the electricity industry.

"Developing self-consumed rooftop solar power will contribute to ensuring electricity supply and helping reduce greenhouse gas emissions," the Ministry of Industry and Trade commented.

The agency also believes that this is a clean, distributed, small-scale, locally consumed power source, and is mainly generated during the day. During peak hours of the power system, this system takes advantage of rooftop areas in residential areas and offices, which already have convenient grid infrastructure for connection, reducing transmission and distribution losses.

Vietnam currently has about 200 MW of rooftop solar systems installed in the past 3 years.

Previously, in a submission to the Government , the Ministry of Industry and Trade proposed three models for developing this power source, including self-produced and self-consumed rooftop solar power that does not sell electricity to other organizations or individuals; rooftop solar power installed in industrial parks, export processing zones, factories and renewable energy systems not connected to the national grid. The Ministry affirmed that it only encourages self-consumption of rooftop solar power in offices and homes.

Mr. Minh

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