This Decree stipulates the mechanism and policies to encourage the development of self-produced and self-consumed solar power installed on the roofs of construction works including houses, offices, industrial parks, industrial clusters, export processing zones, high-tech zones, economic zones, production facilities, and business establishments invested and built under the law.

Specifically, the Decree stipulates 9 incentive policies:

1. Organizations and individuals installing rooftop solar power for self-production and self-consumption are exempt from electricity operation permits and are not limited in installation capacity in the following cases:

a) Not connected to the national grid;

b) Installing anti-reverse power flow equipment into the national grid;

c) Households and individual houses developing rooftop solar power for self-production and self-consumption with a capacity of less than 100 kW.

2. Organizations and individuals installing rooftop solar power for self-production and self-consumption with an installed capacity of 1,000 kW or more and selling excess electricity to the national grid must carry out procedures for power planning and apply for an electricity operation permit in accordance with the law.

3. Rooftop solar power for self-production and self-consumption enjoys tax incentives according to the provisions of current tax laws.

4. Rooftop solar power for self-production and self-consumption benefits from simplified administrative procedures according to current specialized laws.

5. Construction works with installed rooftop solar power for self-production and self-consumption are not required to adjust or supplement energy land and functions according to the provisions of law.

6. Rooftop solar power for self-production and self-consumption of households, individual houses; offices and works identified as public assets are defined as technological equipment attached to construction works.

7. Grid-connected rooftop solar power for self-production and self-consumption within the capacity scale according to the planning and plan for implementation of the planning, and grid-connected rooftop solar power for self-production and self-consumption of households and individual houses with a capacity of less than 100 kW, if not fully used, can be sold to the national grid but not exceeding 20% of the actual installed capacity.

8. Households and individual houses developing rooftop solar power for self-production and self-consumption are exempt from or do not have to adjust their business licenses.

9. Organizations and individuals are encouraged to decide on their own to install battery energy storage systems (BESS) to ensure safe and stable operation of the power system.

The Decree takes effect from October 22, 2024.