Government Encourages Rooftop Solar Self-Consumption but Discourages Trading in Vietnam

The Ministry of Industry and Trade views the use of rooftop solar power as a positive development, but the policy does not support buying and selling this type of energy. This stance was outlined in a report on the Draft mechanism and policy to encourage self-consumed rooftop solar power submitted to the Ministry of Justice for appraisal.

According to the ministry, a national off-grid rooftop solar power proposal will not hinder development. However, in the case of grid connection, the capacity allocated in Power Plan VIII cannot exceed 2,600 MW. The draft policy has removed the phrase about recording electricity output at a price of 0 VND and not being paid and replaced it with “no trading in any form.”

The Ministry of Industry and Trade argues that solar power should not be bought and sold because it is unstable and dependent on weather conditions. To ensure electricity supply, Vietnam Electricity Group (EVN) may need to mobilize additional thermal power units when there is no sunshine, which can lead to fuel wastage, equipment damage, and increased costs for EVN.

Many experts have criticized the regulations on electricity trading in the draft policy. Some believe that the policy is unfair and goes against market principles, making it challenging to attract individuals and businesses to invest in rooftop solar power. The Government Standing Committee has called for regulations on electricity storage systems to facilitate the sale of excess electricity.

The Ministry of Industry and Trade emphasized that the government encourages individuals to install self-consumed rooftop solar power for personal use but not for commercial purposes. The policy aims to reduce financial burdens and promote renewable energy resources’ use. Power Plan VIII targets that by 2030, half of office buildings and residential homes will use self-produced solar power.

The Ministry believes that Vietnam’s infrastructure is insufficient to support a high proportion of renewable energy sources, which could lead to system instability and increased costs. Therefore, Vietnam should not overly rely on solar power to ensure system safety and stability.

In summary, while buying or selling rooftop solar energy is discouraged due to its unpredictability, individuals can still install such systems for personal use under certain circumstances. Furthermore, increasing reliance on renewable energy sources must be done carefully considering infrastructure limitations’ impact on system stability and costs.