Vietnam Proposes Incentives for Rooftop Solar Power

Vietnam’s Ministry of Industry and Trade (MoIT) is proposing incentives for rooftop solar power systems for self-consumption including, unlimited capacity, exemption from power operation licences, tax exemptions and reductions and easier access to some loans.

Following the government’s directions, the (MoIT) has submitted a proposal to the Prime Minister for consideration and approval of a mechanism to encourage the development of rooftop solar power, which will be applicable to those installed in residential, commercial and corporate buildings for self-consumption without selling electricity to other organisations or individuals.

According to a report from the Vietnam News Agency, the MoIT also suggested that investors who invest in and utilise rooftop solar power will be exempted from obtaining power operation licenses and electricity business registration certificates. They will be also prioritised for budgetary allocation, tax exemptions or reductions, and access to loans with preferential interest rates.

These incentives aim to gradually carry out the freshly-approved Power Development Plan VIII, under which, half of office buildings and homes in the country will be powered by rooftop solar panels by 2030. However, this source will not be connected to the national grid.

This mechanism is not limited in terms of installed capacity. However, the systems must comply with the current regulations regarding electrical safety, construction safety, environment protection, and fire prevention and control.

If the proposals are approved, relevant ministries and local authorities will be required to issue guidelines to simplify procedures for construction, fire prevention and control, environment and electrical safety for buildings with rooftop solar power systems.

It is also expected that The Ministry of Finance will prioritise budget allocation to support the development of rooftop solar power systems installed in office buildings and explore options for tax and fee relief.