The Government has issued a decree on mechanisms and policies encouraging the development of self-produced rooftop solar power for self-use.

Decree No. 135/2024/ND-CP, dated October 22, 2024,  encourages the development of rooftop solar power generated at buildings, industrial parks, economic zones, export-processing zones and high-tech parks.

The decree offers some incentives to promote rooftop solar power growth.

Home-based solar electricity systems that are not connected to the national grid are prioritised, allowing unlimited capacity and exemption from having to obtain an electricity operating license.

In the case where a residential rooftop solar power system’s capacity is over 1MW and its owner chooses to sell the surplus energy to the national grid, they will have to complete the application procedures for an electricity operating license as per the laws.

The decree allows individuals and organizations to sell back to the national grid the excessive amount of rooftop solar power but set a cap of below 20% of their total capacity.

Self-produced and self-consumed rooftop solar power will also benefit from tax incentives and simplified related procedures.