New Circular on Solar Power: Changes in Solar Power Policies You Need to Know

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Solar power is a renewable energy source produced by converting solar radiation into electricity. Solar power systems are increasingly widely applied in many households and businesses. However, the installation and operation of solar power systems need to comply with state solar power policies . 

Let’s learn about the new circulars on solar power through the shares below!

What is the circular on solar power? 

Circulars on solar power are understood as the government’s legal regulations related to solar power activities. The Circular includes regulations related to certification, inspection, licensing, supervision and sanctioning of violations in the activities of businesses, organizations and individuals in the field of solar power. 

These regulations are issued to ensure safety, efficiency and environmental protection during the production and use of solar power. In addition, solar circular is one of the important things that need to be considered for families or businesses that intend to install solar power.

New circular on solar power

Circular 01/2023/TT-BCT of the Ministry of Industry and Trade is the latest circular on solar power issued to date.

Circular 01/2023/TT-BCT was issued by the Ministry of Industry and Trade to abolish and amend a number of regulations in Circular No. 02/2019/TT-BCT and Circular No. 18/2020/TT-BCT.

Circular No. 02/2019/TT-BCT mentions regulations for implementing wind power project development. And Circular No. 18/2020/TT-BCT regulates project development and sample power purchase contracts applied to solar power projects. 

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Many regulations related to the development of wind power projects and model electricity trading for these projects have been abolished by Circular 01/2023/TT-BCT. Specifically, the regulatory points that have been removed include Clause 3, Article 3, Article 4, Article 7, and Clause 2, Article 9 of Circular 02/2019/TT-BCT. This new Circular also removes Point a, Clause 1, Article 4 and the phrase “Electricity trading prices of rooftop solar power systems comply with the provisions of Article 8 of Decision No. 13/2020/QD-TTg dated June 6 April 2020 of the Prime Minister approving the incentive mechanism for the development of solar power projects in Vietnam” at Point a, Clause 1, Article 5 of Circular 18/2020/TT-BCT. Circular 01/2023/TT-BCT takes effect from January 19, 2023.

Current solar power policies

In addition to the new circular on solar power, there are currently many other solar power policies being applied. Households and business organizations that need to install and operate solar power should pay attention to make the process of using solar power easier.

Decision No. 13 solar power dated April 6, 2020

Decision No. 13/2020/QD-TTg dated April 6, 2020 of the Prime Minister on the mechanism to encourage solar power development in Vietnam. According to this decision, the government has regulations on electricity purchase prices from grid-connected solar power projects and rooftop solar power systems. The purchase price of electricity from grid-connected solar power projects is determined by each region and time of application, while the purchase price of electricity from rooftop solar power systems is determined based on the USD/VND exchange rate and time. apply.

Circular No. 18 solar power dated July 17, 2020

Circular No. 18/2020/TT-BCT dated July 17, 2020 of the Ministry of Industry and Trade stipulating the order of priority and procedures for granting certificates of eligibility to develop grid-connected solar power projects, as well as directions guide the implementation of electricity purchase contracts. In particular, the circular regulates requirements on capacity, area, completion and operation time of grid-connected solar power projects. In addition, the circular also mentions the basic contents of the electricity purchase contract between the electricity seller and the electricity buyer.

Decree No. 63/2020/ND-CP dated August 18, 2020

Decree No. 63/2020/ND-CP dated August 18, 2020 of the Government supplemented and amended a number of articles of Decree No. 63/2018/ND-CP dated May 4, 2018 on support mechanisms develop renewable energy projects. According to this decree, renewable energy projects, including solar power, are exempt from corporate income tax for 04 years from the date of taxable income and 50% corporate income tax reduction for the next 09 years. according to.

Decision 02/2019/QD-TTg

Decision No. 02/2019/QD-TTg issued by Prime Minister Nguyen Xuan Phuc amended and supplemented a number of articles of Decision No. 11/2017/QD-TTg on encouraging the development of solar power projects in Viet Nam. 

According to this new regulation, rooftop solar power projects will apply a two-way electricity trading mechanism, with separate delivery and receipt directions of two-way electricity meters . 

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The electricity seller will make payment for the amount of electricity received from the grid according to current regulations. Meanwhile, the electricity buyer will pay for the amount of electricity received from the rooftop solar power system transmitted to the grid at the same regulated electricity purchase price as for grid-connected solar power projects. 

Electricity buyers and sellers are responsible for complying with tax and fee regulations according to current law.

Resolution No. 115/NQ-CP dated August 31, 2018

Resolution No. 115/NQ-CP dated August 31, 2018 of the Government is an important document to help Ninh Thuan province recover from damage caused by stopping nuclear power projects and at the same time support the development of nuclear power projects. Key economic sectors such as renewable energy, tourism and agriculture in the period 2018-2023. This Resolution includes many specific mechanisms and policies in areas such as investment attraction, finance, taxes, land, labor, education, training, health, culture and sports, aiming to enhance the competitiveness and autonomy of Ninh Thuan province in sustainable economic and social development.

What should you keep in mind when applying the new circular on solar power?

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Circular No. 01/2023/TT-BCT is a new solar power circular issued. This Circular mentions a number of policies to support solar power development that have been issued by the Ministry of Industry and Trade. To apply this circular, relevant organizations and individuals need to note some of the following points.

Things to note when applying the new circular on solar power:

  • Conditions of application: This Circular applies to solar power projects put into operation from January 1, 2023.
  • Electricity purchase price support: This Circular regulates the purchase price of electricity from new solar power projects, including the purchase price of electricity from rooftop and ground-mounted solar power plants. This electricity purchase price is calculated based on criteria of location, environmental conditions, technology used, electricity conversion efficiency and investment cost.
  • Financial support mechanism: This Circular also regulates the financial support mechanism for solar power projects, including loan support with preferential interest rates, tax support and fee exemptions.
  • Registration and licensing procedures: Solar power project investors need to register and license according to current laws and instructions in this Circular.
  • Supervision and inspection: Solar power projects need to comply with regulations on supervision and inspection of competent agencies to ensure compliance with legal regulations and limit safety risks. security and environment.

Above is a summary of new circulars on solar power as well as current solar power policies . Individuals and organizations wishing to install and operate solar power need to clearly understand the above regulations to apply appropriately. At the same time, understanding policy regulations will help make the process of registering to use solar power more convenient.