Excess rooftop solar power sales capped at 10 per cent of capacity

July 12, 2024 | 09:37
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Deputy Prime Minister Tran Hong Ha instructed the Ministry of Industry and Trade (MoIT) on July 10 to present a plan that will enable households to sell excess rooftop solar power, capped at 10 per cent of their total capacity.

In the latest draft presented in June regarding self-produced and self-consumed rooftop solar power, the MoIT maintained that this type of energy should be produced solely for on-site consumption, not to be sold to other organisations or individuals, nor fed into the national grid. Off-grid rooftop solar power development will not be limited, but on-grid systems must not exceed the capacity allocated in the Power Development Plan VIII (PDP8) (2,600MW).

Excess rooftop solar power sales capped at 10 per cent of capacity

To promote clean energy sources, DPM Ha instructed the MoIT to pilot a scheme allowing the sale of unused excess power to the national grid. However, the excess sold must not exceed 10 per cent of total capacity.

The Ministry of Finance and the MoIT have been tasked with formulating pricing regulations based on the principle of "harmonised benefits and shared risks". State-owned utility EVN will be responsible for purchasing the excess electricity, ensuring system safety.

Ha also emphasised the urgency of these tasks, instructing the MoIT to present the proposal by July 11, so it can be issued by July 12.

Currently, there are approximately 103,000 rooftop solar projects nationwide, with a total capacity exceeding 9,500MW. According to the PDP8, the scale of this source is expected to increase by an additional 2,600MW by 2030, or achieve coverage of 50 per cent of government and residential buildings.

The MoIT noted that the policy does not favour the trading of solar power due to its instability and complete dependence on weather conditions. Moreover, to purchase surplus power, the state would incur significant costs in storage and transmission system investments, as well as operational and maintenance expenses.

The ministry said that the government encourages the installation of self-produced and self-consumed rooftop solar systems to reduce financial burdens, not for commercial purposes with preferential treatment as before. Allowing organisations and individuals to feed excess power into the grid should be considered a privilege, according to the MoIT.

However, many experts have suggested permitting households with rooftop solar installations to sell excess power to the grid, with a regulated limit on surplus to prevent policy exploitation, especially in industrial zones.

Alongside the pilot scheme for trading solar power, Ha also instructed the MoIT and other relevant bodies to design policies to prevent corruption, negative practices, and resource wastage.

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By Celine Luu

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