Vietnam proposes incentives for installing rooftop PV
Recently, Vietnam’s Ministry of Industry and Trade (MoIT) has proposed incentives to encourage the installation of rooftop solar systems for self-use.
The Ministry has established and submitted to the Prime Minister for his consideration and approval a mechanism in which these incentives will be applied to rooftop solar installed in residential, commercial and corporate buildings for self-consumption without selling electricity to other organizations or individuals.
Under the mechanism, the Ministry of Information Technology proposes that investors who invest in and use rooftop solar will be exempt from obtaining an electricity operation license and a certificate of registration of power enterprises. They will also be prioritized for budget allocations, tax exemptions or reductions, and loans for preferential interest rates.
It is reported that this mechanism will not be limited in terms of installed capacity. However, these systems must comply with current regulations on electrical safety, construction safety, environmental protection and fire protection.
Relevant ministries and local authorities will be required to issue guidelines to streamline construction, firefighting, environmental and electrical safety procedures for rooftop solar power system buildings.
The State Bank of Vietnam will take action to lower lending rates or develop preferential lending programs specifically for the northern region. The Treasury Department will prioritize budget allocations to support the development of rooftop solar power systems installed in office buildings and explore tax and fee relief options.
These incentives are aimed at phasing in the implementation of the newly approved Power Development Plan VIII, according to which half of all office buildings and residences will use solar energy for self-consumption by 2030.
The draft proposal also stipulates the responsibilities of ministries, agencies, local authorities, Vietnamese power companies, organizations and individuals in the investment and use of rooftop solar power generation systems.
At a recent working meeting with representatives of the Ministry of Information Technology, the Vietnam Electric Power Company and several relevant ministries and agencies, Deputy Prime Minister Tran Hong Ha said that matters related to solar and renewable energy have not yet been included in the legal document and that it is necessary to design flexible policies when piloting the scheme.
He asked that the Ministry of Information Technology immediately propose mechanisms and policies to the government and PM to encourage investment in this sector and promote the use of electricity generated by rooftop power systems in daily activities and in office and corporate operations.
The regulator should provide the best conditions for solar equipment manufacturers and importers, provide technical guidance and incentives, while supporting households to purchase equipment and establish a suitable price framework for rooftop electricity transmitted to the grid.