Regulations on the Development of Rooftop Solar Systems in Vietnam
Tran Thi Minh Nguyet (Moon)
Legal Consultant
of ZICO Insource, Vietnam
Regulations on the Development of Rooftop Solar Systems in Vietnam
Tran Thi Minh Nguyet
Legal Consultant
of ZICO Insource, Vietnam
Overview
Vietnam’s regulatory framework for rooftop solar power continues to evolve to promote renewable energy development while expanding opportunities for electricity trading. Currently, there are two principal mechanisms for the sale of electricity generated from rooftop solar systems:
1. Self-production and self-consumption with surplus electricity sales (Decree No. 58/2025/ND-CP).
Under Decree 58, organizations and individuals that own self-produced and self-consumed electricity generation systems may sell surplus electricity to designated electricity purchasers. Eligible purchasers include:
- Subsidiaries of the Electricity Corporations under Vietnam Electricity (EVN);
- Dependent units of the Electricity Corporations under EVN; and
- Licensed electricity distribution or retail entities that own or lawfully operate private electricity grids through which the rooftop solar system is connected to the national power grid.
2. Direct Power Purchase Agreements (DPPA) (Decree No. 57/2025/ND-CP).
Decree No. 57 establishes the legal framework for direct electricity trading between renewable energy generators (an electricity company that owns a power plant or renewable energy source) and eligible electricity consumers (consumers with large electricity capacity and consumption according to the regulations of the Minister of Industry and Trade of Vietnam in conformity with each development period of the electricity system). The DPPA framework permits two forms of direct electricity trading:
1. Direct Trading through Dedicated Connection Lines: Renewable energy generators may enter into direct power purchase agreements through privately connected transmission lines with:
- Large electricity consumers;
- Electricity retailers operating within industrial parks or clusters; or
- Large electricity consumers purchase electricity from retailers that have invested in renewable energy generation facilities.
2. Direct Trading through the National Grid: Alternatively, renewable energy may be traded through the national electricity grid under a contractual structure whereby:
- Renewable energy generators sell all generated electricity into the competitive wholesale spot market;
- Large electricity consumers or eligible electricity retailers enter into electricity futures (Contract for Difference) with renewable energy generators; and
- Large electricity consumers or eligible electricity retailers continue to purchase physical electricity from EVN or the relevant electricity corporation under separate electricity supply agreements
The two Decrees are currently amended by Decree No. 243/2026/ND-CP. A significant amendment has been introduced under Decree 243. The volume of surplus electricity that may be sold is subject to agreement between the parties but must not exceed 50% of the electricity output generated by the rooftop solar system, calculated based on solar irradiance. This represents a substantial increase from the previous limit of 20% under Decree No. 58, providing rooftop solar investors with greater flexibility and improving the commercial viability of self-consumption projects.
Disclaimer: This article does not constitute legal advice or substitute for professional advice. Should you need legal advice or professional advice, please contact a lawyer or a professional for the advice that you are seeking.
