Draft Decision /2021/QĐ-TTg on mechanism to encourage development of rooftop solar power in Vietnam (Draft FIT3) was submitted on 3/2021 by Ministry of Industry & Trade (MOIT). It was meant to encourage solar power project development in year 2021. However, up to now in 8/2021, the draft is still under review and not yet approved which leaves barely 4 months before the end of year to develop projects. Maybe Covid pandemic crisis has delayed the schedule.
Draft FIT3 is the replacement to the successful Decision 13/2020/QĐ-TTg with significant changes to feed-in-tariff (FIT2) and other provisions. The new solar FIT3 is more than 30% lower than FIT2 in Decision 13. In an interview with Mr. Hoang Tien Dung, the General Director of EREA on March 2021: the reduced FIT3 need to encourage self consumption and discourage feeding into the power grid.
Furthermore, solar energy equipment costs have decreased in the past year making it even more attractive to go solar. Also, under the self consumption model, the fixed investment cost is compared against the yearly increasing EVN electricity price. Therefore, investing in solar power is still profitable under FIT3 when the investor uses the generated renewable energy. In additional to the economic benefits, the investment also brings added brand value and help reduce the company’s carbon footprint.
December 2020 Saigon Tiep Thi interview Mr. Tran Doan Kiet of Suntiki Solar: “Vietnam solar energy will develop very slowly without FIT3”
Current estimate in the market of 2021 results.
Total installed solar capacity:
1/ Draft Decision for RTS solar submitted for Prime Minister review in March 2021 has not yet been approved.
2/ The Decision is for rooftop solar specifically. According to Mr. Hoang Tien Dung of EREA, ground mount, solar park and floating solar will be using bidding mechanism.
3/ feed-in-tariff (FIT3) price in accordance to project size.
4/ Rooftop definition:
5/ Other technical requirements:
6/ Power purchasing agreement requirements (PPA and DPPA):
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
Hanoi, date of 2021
About the mechanism to encourage the development of rooftop solar power in Vietnam
Pursuant to the June 19, 2015 Law on Government Organization;
Pursuant to the December 3, 2004 Electricity Law; The Law amending and supplementing a number of articles of the Electricity Law dated November 20, 2012;
Pursuant to the 2020 Investment Law;
Pursuant to the Construction Law dated June 18, 2014; Law amending and supplementing the Law on Construction in 2020;
At the proposal of the Minister of Industry and Trade;
The Prime Minister promulgates the Decision on the mechanism to encourage the development of rooftop solar power.
Article 1. Scope
This Decision regulates the mechanism to encourage the development of rooftop solar power in Vietnam.
Article 2. Subjects of application
Subjects of application of this Decision include organizations and individuals participating in the development of rooftop solar power in Vietnam and other relevant organizations and individuals.
Article 3. Interpretation of terms
In this Decision, the following terms are construed as follows:
IMPLEMENTATION ORDER AND PURCHASE PRICE
Article 4. Development of rooftop solar power system
The Seller and the Buyer agree on the order of implementation, installation, connection and maintenance of electrical equipment of the rooftop solar power system.
Article 5. Power purchase price and sample power purchase agreement
– For rooftop solar power systems, the time to put into operation and generate electricity and certify the meter readings in 2021 is specified in the electricity purchase and sale tariff in the Appendix to this Decision.
– For rooftop solar power systems with time to put into operation and generate electricity and certify meter readings in 2022 or later, the electricity purchase price shall be submitted by the Ministry of Industry and Trade and in writing by the Prime Minister. acceptance.
– Electricity purchase price is applied for 20 years from the date of power generation operation, excluding value-added tax, and is adjusted according to the fluctuation of the price of Vietnam dong against the US dollar (equivalent to UScents/ kwh), the applicable rate is the central exchange rate of Vietnam Dong to the US Dollar announced by the State Bank of Vietnam on the last day of the previous year to calculate the electricity bill for the following year. The Parties are responsible for implementing the provisions of applicable laws on taxes and fees.
– The cost of purchasing electricity from rooftop solar power systems specified in Clause 2 of this Article is fully accounted for in the input parameters of the Electricity of Vietnam’s annual wholesale and retail electricity price plans. . Payment invoices are made on the basis of separate delivered and received electricity.
– For rooftop solar power systems with a capacity of more than 100 kWp, it is required that the monthly self-consumption electricity volume is not less than 20% of the electricity generated in the month and maximum payment of 80% of the actual generated electricity output is required. in the month of the rooftop solar power system.
ORGANIZATION OF IMPLEMENTATION
Article 6. Responsibilities of state management agencies
c/ Issue regulations on technical requirements for connection, acceptance, measurement and operation of rooftop solar power systems.
d/ Before September 30 every year: Formulate and submit to the Prime Minister the price of rooftop solar power or a mechanism to encourage the development of rooftop solar power for the next year.
Article 7. Responsibilities of relevant organizations and individuals
Article 8. Effect
– Secretariat of the Party Central Committee;
– Prime Minister and Deputy Prime Ministers;
– Ministries, ministerial-level agencies, agencies attached to the Government;
– People’s Councils, People’s Committees of provinces and centrally run cities;
– Central Office and Party Committees;
– Office of the General Secretary;
– Office of the President;
– Ethnic Council and Committees of the National Assembly;
– Congress office;
– Supreme People’s Court;
– People’s Procuratorate of the Supreme;
– State Audit;
– National Financial Supervision Commission;
– Bank for Social Policies;
– Vietnam Development Bank;
– Central Committee of Vietnam Fatherland Front;
– Central body of unions;
– Office of Government: BTCN, PCNs, Assistant TTg, General Director of e-portal portal,
Departments, Departments, affiliated units, Official Gazette;
– Save: VT, CN (2b).
Nguyễn Xuân Phúc
PRICE FOR PURCHASING SOLAR POWER OF SMALL ROOTS
(Attached to Decision No. /2021/QD-TTg dated 2021 of the Prime Minister)
Rooftop solar power capacity
< 20 kWp
From 20 kWp ÷ < 100 kWp
From 100 kWp to 1.250 kWp (not above 01 MWac)
Note: The exchange rate calculated according to the central exchange rate of Vietnam dong to the US dollar announced by the State Bank of Vietnam on December 31, 2020 is 01 USD equal to 23,131 VND.
CT TNHH Suntiki Solar is a solar energy company based in Vietnam. We consult, survey, engineer and install rooftop solar panel systems for residential, commercial, industrial such as factories, farms, villas, industrial parks and others.