This is the most important content in Decision No. 11/2017/QD-TTg dated April 11, 2017 of the Prime Minister on mechanism for encouragement of development of solar power in Vietnam (Solar power project is a project to generate electric power by using solar panel to convert energy from the sun into electricity).
Accordingly, regarding to grid-connected project, Vietnam National Electricity Corporation (EVN) or member units authorized by EVN has the responsibility to purchase all generated energy from grid-connected projects at 2,086 VND/kWh (excluding VAT). This price is adjusted to the exchange rate between VND and USD; only applicable to grid-connected projects with the efficiency of solar cells greater than 16% or efficiency of the module greater than 15%.
Rooftop projects shall be implemented in net-metering with two-way electricity meters. In a trading cycle, if the amount of electricity generated from rooftop projects is greater than the consumed amount, the surplus will be carry forward to the next trading cycle. At the end of the year or when the contract is terminated, the surplus amount of energy will be sold to the buyer at the price of grid-connected project.
Also in accordance with this Decision, there is mechanism to encourage the development of solar power projects. Such as: Solar power projects are eligible for exemption of import duties on goods imported as fixed assets; Corporate income tax exemption and reduction granted to solar power projects shall be the same as those granted to projects eligible for investment incentives. About land incentives, grid-connected solar power projects, transmission lines and substations shall be eligible for exemption or reduction land levy, land rent, water surface rent in accordance with current regulations on investment incentive programs.
This Decision takes effect from June 01, 2017 to June 30, 2019.
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