Legal Policy on Rooftop Solar (RTS) in Vietnam: Updated Since March 2025

Since 03 March 2025, following the ratification of the New Law on Electricity (2024), the policy on Rooftop Solar (“RTS”) system has been governed by the new Decree No. 58/2025/ND-CP of the Government of Vietnam (“Decree 58”).

Decree 58 replaces Decree No. 135/2024/ND-CP (“Decree 135”) with an effective period of 4 months, which was shared by CNC in a previous Legal Update.

Through this article, CNC will update the noteworthy points on Decree 58.

Scope of application

Decree 58 only governs the RTS systems for purpose of self-production and self-consumption. Regarding any RTS system for commercial purpose such as Direct Power Purchase Agreement (“DPPA”) Model, such RTS systems shall be governed by Decree No. 57/2025/ND-CP of the Government of Vietnam, which was adopted on the same day with Decree 58.

RTS Systems under Decree 58 shall be installed on rooftops of the construction works, which shall comply with the legal regulations regarding investment, construction, land, environment protection, safety and fire prevention[1].

It is noteworthy that no provision in Decree 58 requires the developer of RTS system (“Developer”) shall be the owner. Therefore, the owner may develop his/her RTS system by leasing out or loaning or cooperating with other party.

Differences in the scope of application between the two Decrees governing the RTS systems

Under Decree 58, the Developer may choose the RTS system without any connection to the national electricity grid (“Off-Grid RTS”) or the RTS system connected to the national electricity grid (“Grid-Connected RTS”).

Policy on excess electricity output sales

This policy is considered the most noteworthy policy in Decree 58, since it is the main development force of RTS systems in Vietnam.

Accordingly, transactions of excess electricity output are permitted with most RTS systems, except for RTS systems installed on works classified as public assets[2].

The excess electricity output may be sold by a party being the RTS system’s owner or any party receiving rights and obligation thereof[3].

The purchaser of such output shall be a subsidiary/unit of Electricity Power Corporation of EVN (hereinafter referred to as “EVNPC Unit”)[4], instead of EVN itself as prescribed in Decree 135.

Purchaser of excess electrictity output under Decree 135 and Decree 58

With this change, it may be understood that the Developer may sell excess output via the grid owned by EVNPC Unit which does not connect/link to the national grid. However, such transaction is entitled to be conducted under Decree 58 in only 02 cases as follows[5]:

RTS system installed on the rooftop of residential facilities with a capacity below 100 kW;
RTS system installed on the rooftop of construction works in the mountainous/border/island area.

Cases where excess electricity output is permitted for sales

It is a noteworthy point that the determination of the limits of excess electricity output for sales is more clarified than Decree 135.

Accordingly, the excess electricity output for sales is maximum 20% of the generated electricity output, except for RTS systems in the mountainous/border/island area where the excess electricity output for sales is unlimited[6].

The generated electricity output is monthly calculated via the following formula[7]:

Formula of determination of the monthly generated electricity output of RTS systems under Decree 58

Furthermore, the selling price of the excess output shall be[8]:

Determined as the average market electricity price in the previous year announced by the National Electricity System and Market Operation Company Limited (“NSMO”); and
No more than the price ceiling for ground solar power announced by the Ministry of Industry and Trade.

Determination of the selling price of excess electricity output under Decree 58

Requirements for Developers

The Developer shall, as the case may be, conduct the following required works:

Electricity operating license;
Notification to the Department of Industry and Trade (“DoIT”) and local authorities of construction, fire prevention and electricity;
Registration with the DoIT;
Acceptance of investment in construction and installation;
Signing Power Purchase Agreement (“PPA”) with EVNPC Unit for sale of excess electricity output.

Required works for the Developer depending on each type of RTS system

Electricity operating license

Developers selling excess electricity output shall obtain an electricity operating license, unless his/her RTS systems are exempted from electricity operating license[9].

Distinct from Decree 135, the Developers classified as residential households with a capacity below 100kW shall also obtain an electricity operating license to sell excess electricity.

Notification to DoIT and local authorities/Registration with DoIT

There are 03 types of Developers required to give notification to DoIT and local authorities of construction, fire prevention and electricity, as follows[10]:

Off-Grid Connected RTS;
All residential households with a capacity below 100 kW;
Grid-Connected RTS with a capacity below 1000 kW without excess output sales.

Any Developer who is not required to give notification to DoIT shall register with the DoIT to obtain the certificate of registration for RTS development[11].

However, regardless of notification or registration with DoIT, the Developer should note these documents as follows:

A written notification or registration based on the templates in Decree 58;
Design drawings for installation of RTS system;
Copies of legal documents relating to the construction works with the RTS system thereof (“Legal Documents Of Works”), including: Approval of investment policy; Construction permit; Acceptance of fire prevention; Acceptance of construction works; Environment permit or registration.

Accordingly, the design drawing is required for all Grid-Connected RTS system[12]. Also, copies of Legal Documents Of Works are required for most Grid-Connected RTS system, except for Developers classified as residential households[13].

In brief, for notification or registration with DoIT, Developer shall prepare documents as illustrated below:

Documents required for notification or registration with DoIT

For Developers required to register with DoIT, the procedures for issuing the certificate of registration for RTS development shall follow the below flowchart[14]:

Procedures for issuing the certificate of registration for RTS development

Acceptance of investment in construction and installation

Before putting into operation, the Developers shall carry out the acceptance of investment in construction and installation of RTS systems, including the metering and remote data collection systems (if any)[15].

Signing PPA with EVNPC Unit for sale of excess electricity output

The Developer who desires to sell excess electricity output shall send to EVNPC Unit the following documents[16]:

A written application form for sale of excess electricity output;
Technical documents on solar panels;
Certificate of Origin (CO) of solar panels;
Certificate of Quality (CQ) of solar panels;
Documents on capacity (kW) of devices converting direct current to alternating current;
Documents on total capacity (kWp) of solar panels;
Documents on other component devices;
Certificate of registration for RTS development;
Dossiers of completion on construction works;
Written approvals for acceptance (if any) granted by relevant authorities of construction, environment protection, fire prevention.

Except for the written application, the other documents shall be in copies.

Within 05 working days from receiving these documents, EVNPC Unit shall sign PPA with the Developer[17].

Transitional Provisions

For any RTS system installed before 01 January 2021 and being in commercial operation, the owner is not entitled to increase the capacity of such RTS system.

The Developer of the RTS system developed from 01 January 2021 (for self-production and self-consumption) shall comply with Decree 58, except any dossier for registration on RTS development received by DoIT before 03 March 2025 shall be addressed under Decree 135.

Contact

To contribute or amend the content of this article or to request further support from CNC, please contact:

Address: 28 Mai Chi Tho, An Phu Ward, Thu Duc City, Ho Chi Minh City, Vietnam

Phone: (84) 28-6276 9900

Hotline: (84) 916 545 618

Email: contact@cnccounsel.com

Website: cnccounsel

Written by

Senior Associate I Tran Pham Hoang Tung

Phone: (84) 901 334 192

Email: tung.tran@cnccounsel.com

Legal Assistant I Pham Nguyen Tan Trung

Phone: (84) 028 6276 9900

Email: trung.pham@cnccounsel.com

[1] See Article 13.1, Decree 58.

[2] See Article 14.5, Decree 58.

[3] See Article 3.1, Decree 58.

[4] See Article 3.2, Decree 58.

[5] See Article 14.1, Decree 58.

[6] See Article 14.2 and 14.6, Decree 58.

[7] See Article 14.2, Decree 58.

[8] See Article 14.4, Decree 58.

[9] See Article 14.7, Decree 58.

[10] See Article 15, Decree 58.

[11] See Article 16.1, Decree 58.

[12] See Form No. 01, Form No. 02 of Appendix and Article 17.1, Decree 58.

[13] See Form No. 02 of Appendix and Article 17.1(c), Decree 58.

[14] See Article 18, Decree 58.

[15] See Article 23, Decree 58.

[16] See Article 24.1, Decree 58.

[17] See Article 24.2, Decree 58.