On April 6, 2020, the Prime Minister issued Decision No. 13/2020/QD-TTg on the mechanism for encouraging the development of solar power in Vietnam (Decision 13). Pursuant to the provisions of Decision 13, the Ministry of Industry and Trade issued Circular No. 18/2020/TT-BCT dated July 17, 2020 on project development and standard power purchase agreements (PPAs) that are applied to solar power projects (Circular 18), including the provisions on rooftop solar power (RSP) development. However, in recent years, there have been many ways of understanding and expression that are not in strict accordance with the provisions on the development of RSP systems. In order to ensure that the investment in RSP systems is consistent with the incentive mechanism specifically guided by the Prime Minister and the Ministry of Industry and Trade as follows:
1. General provisions on RSP in Decision 13 and Circular 18
– RSP system is the solar power system that has photovoltaic panels installed on the roofs of buildings and has capacity of not more than 01 MW, directly or indirectly connected to power grids having voltage levels equal to or less than 35 kV from the electricity buyer.
– The sequence of connecting RSP systems to sell electricity to power companies is summarized as follows:
+ The electricity seller registers to connect RSP systems with the electricity buyer;
+ The electricity buyer gives opinions on the capability to connect and transmit power;
+ The electricity seller and buyer implement the connection agreement;
+ The electricity seller installs the RSP system;
+ The electricity seller sends a proposal to sell electricity of the RSP system;
+ The parties conduct technical inspection, install electricity meters to measure power output, take meter readings, and sign PPAs;
– RSP system is exempt from electricity operation licensing.
– Organizations and individuals investing in the installation of rooftop solar power systems must ensure the requirements about electrical safety, safety at construction sites, environmental safety, as well as fire and explosion prevention and fighting according to the current regulations.
– A part or all of the generated power of Rooftop solar power systems is allowed to be sold to the buyer who Vietnam Electricity (EVN) or an organization or other individuals unless EVN grid is not in use.
2. RSP systems are installed on the roofs of construction projects, in which:
(a) Construction projects (having independent performance from those having RSPs and roofs), pursuant to Clause 10, Article 3 of the Construction Law in 2014 “are the products created by human labor, construction materials, installed equipment, which are connected to the ground, and may include the parts below and above the ground or water surface, constructed according to the design. Construction projects include civil and industrial projects, transportation, agricultural and rural development, technical infrastructure and others”.
– The roofs should be consistent with the performance and purpose of usage in construction projects.
– Regarding the classification of construction projects in compliance with the provisions in Appendix I, Decree 46/2016/ND-CP dated May 12, 2015 of the Government.
– Regarding the classification of construction projects in compliance with Circular No. 03/2016/TT-BXD dated March 10, 2016 and Circular No. 07/2019/TT-BXD dated November 7, 2019 of the Ministry of Construction.
– Construction projects (including new construction, renovation, repair) are invested and implemented in accordance with the current laws on investment, construction, environment, fire and explosion prevention, land,….
(b) RSP system: specified in Clause 5, Article 3, Decision 13.
– Construction and development of the RSP systems on the roofs of the construction projects according to the provisions of Clause 1, Article 9, Decision 13 and Clause 2, Article 5, Circular 18;
– According to Circular No. 07/2019/TT-BXD dated November 7, 2019 of the Ministry of Construction, the RSP system is class IV project;
– Regarding construction safety assurance:
+ Chủ đầu tư công trình hệ thống ĐMTMN phải bảo đảm các kết cấu của hệ thống thiết bị điện mặt trời liên kết với kết cấu, mái nhà của công trình xây dựng theo các yêu cầu kỹ thuật về xây dựng công trình, không bị sự cố do yêu tố thời tiết trong quá trình vận hành;
+ Đối với công trình xây dựng: Phải bảo đảm an toàn chịu lực của công trình xây dựng theo tiêu chuẩn áp dụng khi lắp đặt bổ sung công trình hệ thống điện mặt trời lên mái nhà của công trình xây dựng.
– Regarding electrical safety assurance:
+ Following the Norms of Electrical Equipments, the current law provisions and the standards applied in the field of electrical power.
– Regarding environmental safety:
+ Pursuant to the provisions of Clause 11, Article 1, Decree No. 40/2019/ND-CP dated May 13, 2019, the RSP systems are exempt from environmental protection plan registration. The management and handling with waste and other obligations to protect the environment must comply with the laws.
– Regarding the assurance of fire and explosion prevention and fighting safety:
+ Pursuant to the Government’s Decree No. 79/2014/ND-CP dated July 31, 2014, the RSP systems do not belong to the list of: danger of fire and explosion; companies that have to notify the police department of fire prevention and fighting; projects approved by the police department of fire prevention and fighting.
– About the testing and operation of RSP systems:
+ The testing of RSP systems shall comply with the provisions of Circular No. 39/2015/TT-BCT dated November 18, 2015, Circular No. 30/2019/TT-BCT dated November 18, 2019 and Document No. 7410/BCT-DTDL dated September 14, 2018 of the Ministry of Industry and Trade;
+ The operation of the new RSP systems implemented by the owners must comply with the current laws on safety regulations for construction, electrical power, fire and explosion prevention and environment.
3. Guidance for some specific cases
a) Regarding RSP systems on agricultural farms’ roofs: Based on the provisions of Circular No. 02/2020/TT-BNNPTNT dated February 28, 2020 of the Ministry of Agriculture and Rural Development (Circular 02), farm owners are responsible for organizing production and business in consistent with land use planning, plans on land use in the area; in compliance with the laws on product quality, food safety, health safety for epidemic prevention, and environmental protection. In compliance with Decision 13, farm buildings must have roofs, which are inconsistent with the function and the types of the farms. The owners of the RSP systems on agricultural farm roofs must supplement confirmation of the Commune or District People’s Committee’s declaration on farm construction (as per Appendix III, Circular 02) to the registration documents /agreements on electricity connection or PPAs.
b) In the case of multiple RSP systems with total capacity of more than 01 MW (each system ≤ 01 MW) per 01 location (on the same plot of land or roof of the industrial park) which is connected at 01 or more places of 01 owner, or when an owner repurchases many adjacent RSP systems on the same land, with a total capacity of more than 01 MW. In this case, PPAs are signed and electric power operation licenses are not required in accordance with Decision 13 and Circular 18.
c) In the case that the owners take advantage of roofs in offices, operators, kitchens, motels, staff garages, factories, material warehouses, solar power project premises, hydroelectric power plants, thermal power plants to invest in RSP, and request to install separate meters, and sign PPAs for RSP systems: in this case, EVN is entitled to sign PPAs if rooftop solar power is in accordance with the provisions on the new RSP system in Decision 13, Circular 18.
d) If solar power systems with capacity up to 01 MW are installed on mounting systems (without roofs) or on land; if the RSP systems installed on the factory roofs in the industrial zone that not only buys electricity from EVN for use, but also sells electricity of the RSP systems to EVN grid at the voltage of 110 kV; If RSP systems at the farms with capacity of more than 01 MW; If the RSP systems are connected to the voltage above 35 kV, then the prices of electricity for sale of RSP systems shall not be applied according to the provisions of Decision 13.
According to the Ministry of Industry and Trade
