Latest Regulations on Rooftop Solar Power Buying and Selling

Latest regulations on selling rooftop solar power

Have you ever wondered about regulations for buying and selling rooftop solar power? If you are interested in using solar energy to save electricity and protect the environment, then this regulation will be very important to you. So, what are the regulations on selling rooftop solar power and what’s new in 2023? Let’s find out together.

Overview of regulations on purchasing and selling rooftop solar power

As of November 22, 2023, the latest regulations for purchasing and selling rooftop solar power are stipulated in Circular No. 23/VBHN-BCT dated December 26, 2022 of the Ministry of Industry and Trade. Accordingly, regulations on selling rooftop solar power include:

Regarding applicable subjects:

  • Households, individuals, organizations, and businesses (DN) have a need to buy and sell rooftop solar panels (DMTAM).
  • DMTAM system is only allowed to sell electricity to EVN.

About maximum capacity:

  • For households: 1MWp.
  • For individuals: 5MWp.
  • For businesses: 20MWp.

Regarding electricity purchase price:

  • The electricity purchase price for newly installed DMTAM is 1,978 VND/kWh excluding value added tax (equivalent to 8.38 Uscents/kWh).
  • The electricity purchase price for DMTAM that was in operation before July 1, 2019 is 2,207 VND/kWh excluding value added tax (equivalent to 9.35 UScents/kWh).

Regarding connection procedures:

The electricity seller must carry out procedures to connect the solar power system to the power grid according to the provisions of electricity law.

After connection, the Electricity Seller and the Electricity Purchaser must sign an electricity purchase contract.

In addition, Circular No. 23/VBHN-BCT also regulates a number of other contents related to DMTAM, let’s join VREnery to learn about the regulations on selling rooftop solar power.

Applicable subjects and conditions for installing rooftop solar power

According to this regulation, individuals, households, organizations, and businesses can install rooftop solar power systems for their own consumption or resell to Vietnam Electricity Group (EVN).

Applicable subjects

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This regulation applies to individuals, households, organizations, and businesses that need to install rooftop solar power systems for self-consumption or resale to EVN.

Installation conditions

Rooftop solar power systems must meet the following conditions:

  • Installed on roofs, terraces, walls of individuals, households, organizations, and businesses.
  • Have an installed capacity not exceeding 1MW for households and individuals; 10MW for organizations and businesses.
  • In accordance with electricity planning, construction planning and other relevant legal regulations.

Procedures for installing rooftop solar power (3 steps)

To install a solar power system , individuals, households, organizations, and businesses need to take the following steps:

  1. Establish an investment project to build a rooftop solar power system.
  2. Prepare documents to connect the rooftop solar power system to the national grid.
  3. Signed a power purchase contract with EVN.

Step 1: Prepare an investment project to build a rooftop solar power system

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The investment project to build a rooftop solar power system needs to include the following contents:

Step 2: Prepare documents to connect the rooftop solar power system to the national grid

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Dossier for connecting a rooftop solar power system to the national grid includes the following documents:

  • Application for connection of rooftop solar power system to the national grid.
  • Certificate of land use rights or land lease contract.
  • Technical design drawing of rooftop solar power system.
  • Feasibility study report or environmental impact assessment report (if any).

Step 3: Sign a power purchase contract with EVN

After the rooftop solar power system is connected to the national grid, the investor needs to sign a power purchase contract with EVN. The electricity purchase contract is signed according to the form issued by the Ministry of Industry and Trade.

And the expected time to carry out the procedure for installing rooftop solar power is about 2 – 3 months.

Detailed answers about electricity purchase prices for rooftop solar power projects

Payment method for electricity from solar power system

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According to the law, EVN pays electricity bills to individuals, households, organizations and businesses selling electricity from rooftop solar power systems in the following two methods:

  • Method 1: Payment according to the amount of electricity generated on the grid

EVN pays the investor of the rooftop solar power system according to the electricity output generated on the grid. Electricity purchase price is determined according to Government regulations.

For payment method based on electricity output generated on the grid, EVN will make payments to investors of rooftop solar power systems according to the following formula:

Electricity bill = Electricity output generated to the grid * Electricity purchase price

The electricity output generated on the grid is calculated based on the two-way meter readings of the rooftop solar power system.

  • Method 2: Payment according to the average electricity selling price

EVN pays the investor of the rooftop solar power system according to the average electricity selling price of the national grid. The average electricity selling price is calculated based on the electricity output generated on the grid of all rooftop solar power systems across the country.

For payment method based on average electricity selling price, EVN will make payments to investors of rooftop solar power systems according to the following formula:

Electricity bill = Average electricity selling price * Electricity output sent to the grid

The average electricity selling price is calculated based on the electricity output generated on the grid of all rooftop solar power systems across the country.

The electricity output generated on the grid is calculated based on the two-way meter readings of the rooftop solar power system.

Electricity purchase price is determined according to Government regulations

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Solar power contract

For rooftop solar power systems with power generation operations and meter reading confirmation before July 1, 2019, the electricity purchase price is 2,207 VND/kWh excluding value added tax (equivalent to equivalent to 9.35 UScents/kWh).

For rooftop solar power systems with power generation operations and meter reading confirmation from July 1, 2019 to December 31, 2020, the electricity purchase price is 1,978 VND/kWh excluding tax. added value (equivalent to 8.38 UScents/kWh).

For rooftop solar power systems with power generation operations and meter reading confirmation after December 31, 2020, the electricity purchase price is determined according to Government regulations.

Payment time

According to the provisions of Article 14 of Circular No. 23/VBHN-BCT dated October 12, 2022 of the Ministry of Industry and Trade regulating solar power project development and sample power purchase contracts, EVN is responsible for paying electricity bills. monthly for rooftop solar power system investors. The latest payment deadline is the 20th of every month.

Thus, if your rooftop solar power system is accepted and put into operation in November 2023, EVN will pay your electricity bill in December 2023. The latest payment deadline is December 20, 2023.

Payments

EVN pays electricity bills to investors of rooftop solar power systems in cash or bank transfer.

Payment conditions

To be paid electricity bills, investors of rooftop solar power systems need to meet the following conditions:

  • The rooftop solar power system has been connected to the national grid.
  • The rooftop solar power system has been accepted and put into operation.
  • The investor of the rooftop solar power system has signed a power purchase contract with EVN.
  • The investor of the rooftop solar power system has provided all necessary documents to EVN.

summary

In this article, we have learned together about the latest regulations related to the purchase and sale of rooftop solar power. These changes are not only an important step forward in the direction of sustainable development, but also bring many opportunities for consumers, businesses and the environment.

Electricity policy for tomorrow 2023 1 min

Support and incentives from the law not only stimulate investment in renewable energy but also contribute to the common social community goals of savings, energy efficiency, and emission reduction.

At the same time, we are also aware of the importance of maintaining and promoting these supportive policies to create momentum for the transition to clean energy sources. Surely, grasping information about the latest regulations on selling rooftop solar power will help us make the most of opportunities in this field, while actively contributing to sustainable development. of society and the environment.