The Ministry of Industry and Trade (MoIT) has proposed incentives to encourage the installation of roof-top solar power systems for self-consumption.

The ministry has built and submitted a mechanism to the Prime Minister for consideration and approval in which these incentives would be included.

Incentives would be applied to rooftop solar power installed in residential, commercial and corporate buildings for self-consumption without selling electricity to other organisations or individuals.

Under the mechanism, the MoIT suggested that investors who invest in and utilise rooftop solar power would be exempt from obtaining power operation licences and electricity business registration certificates.

They would also be prioritised for budgetary allocation, tax exemptions or reductions, and access to loans with preferential interest rates.

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

Relevant ministries and local authorities would be required to issue guidelines to simplify procedures for construction, fire prevention and control, and environment and electrical safety for buildings with rooftop solar power systems.

The State Bank of Viet Nam would act to reduce lending rates or design a preferential lending package specifically targeting the northern region. The Ministry of Finance would prioritise budget allocation to support the development of rooftop solar power systems installed in office buildings and explore options for tax and fee breaks.

These incentives aimed to gradually carry out the freshly-approved Power Development Plan VIII, under which, half of office buildings and residential houses would use solar power for their self-consumption in 2030.

The draft proposal also specifies the responsibilities of ministries, agencies, local authorities, Vietnam Electricity, organisations and individuals regarding the investment and use of rooftop solar power systems.

During a recent working session with representatives from the MoIT, Vietnam Electricity (EVN) and several relevant ministries and agencies, Deputy Prime Minister Tran Hong Ha said matters related to solar and renewable energy had yet to be included in legal documents, it was necessary to design flexible policies in piloting the scheme.

He asked the MoIT to promptly propose to the Government and the PM mechanisms and policies to encourage investment in the field and promote the use of electricity generated from roof-top power systems in daily activities as well as offices and businesses’ operations.

Management agencies should provide optimal conditions and give technical guidance as well as incentives to solar power equipment manufacturers and importers, while supporting households in purchasing the equipment, and building a suitable price framework for roof-top electricity transmitted to the power grid.

On June 8, Deputy PM Ha also issued a directive on the strengthening of power saving in the 2023-35 period and following years, which included the promotion of roof-top power system installation.

Earlier on June 6, Prime Minister Pham Minh Chinh sent a dispatch to ministries, sectors and localities on urgent solutions to ensure supply of power in the dry season of 2023 and following years as well as effectively implement power saving measures. — VNS