Solar power development mechanism – Proposal to improve the rooftop solar power development mechanism in Vietnam is being developed by the Ministry of Industry and Trade and evaluated by the Ministry of Planning and Investment. The new draft focuses on providing general incentive mechanisms, however, it has not reached the level of attractiveness and investment attraction in rooftop solar power systems.
The Ministry of Planning and Investment (MPI) has just sent a document to the Ministry of Industry and Trade (MOIT) to comment on the draft decision of the Prime Minister on the mechanism for developing rooftop solar power in Vietnam, which is being built by the Ministry of Industry and Trade.
The Ministry of Planning and Investment clearly proposes the applicable objects of the solar power development mechanism including houses, offices and business offices.
In the case of prioritizing the use of capital from the state budget, specific regulations and thorough research are required to determine whether this is public investment or recurrent expenditure. If public investment capital is used, the implementation must follow the order and procedures of public investment projects.
The Ministry of Planning and Investment also emphasized that it is necessary to clarify that the subjects of application of the mechanism are houses, offices and business offices. This is necessary because the Enterprise Law stipulates the head office, branch office, representative office and business location. The use of the term “enterprise headquarters” should be considered in accordance with the provisions of the Enterprise Law.
The Ministry of Industry and Trade was also asked to clarify the content and meaning of the regulation “excluding headquarters with production, business and commercial activities”. At the same time, the assignment of specific tasks to ministries and sectors should be based on functions, tasks and feasibility. For example, the Ministry of Industry and Trade needs to coordinate with other ministries and sectors to mobilize resources, and the State Bank should direct commercial banks to reduce interest rates.
In reviewing the incentive mechanism and related requirements, the Ministry of Planning and Investment assessed that the current new draft does not create an attractive and attractive mechanism for investment in rooftop solar power systems.
To solve this problem, the Ministry of Planning and Investment has proposed the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment, according to their functions and tasks, to develop specific support programs to encourage people to and organizations participating in investment and construction of rooftop solar power systems.
In the process of developing a rooftop solar power system, it is necessary to set specific and quantifiable goals for each stage. The set target is to achieve the rate of 50% of office buildings and 50% of residential houses using self-produced and consumed rooftop solar power systems by 2030.
To promote rooftop solar PV system investment and deployment, mechanisms and policies need to enable cooperation between investors and owners and users of homes, buildings and public utilities. facility to install self-produced and consumed rooftop solar power systems according to agreements between the two parties.
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The Ministry of Planning and Investment has noted in the draft that it is necessary to propose specific tax and fee exemption or reduction to support investors, and evaluate the suitability of these recommendations with current regulations.
Previously, the Ministry of Industry and Trade has proposed to encourage the development of rooftop solar power, applied to rooftop solar power systems installed in houses, offices and businesses’ headquarters for self-use, do not sell electricity to other organizations or individuals.
Individuals and units that install this system will be exempted from electricity operation license and electricity business registration certificate. Moreover, investors and users of this system will be exempted or reduced from taxes, fees and can borrow capital at preferential interest rates as prescribed.
Rooftop solar power system is connected to the distribution power system according to regulations without connection agreement. However, the installation of this system must comply with the requirements of electrical safety, construction safety, environment and fire prevention according to current regulations.
Regarding the assignment of tasks to ministries, branches and localities for implementation, the Ministry of Planning and Investment proposes to base on functions, tasks and feasibility. This includes the mandate of the Ministry of Industry and Trade in mobilizing resources together with ministries and sectors, and the direction of the State Bank for commercial banks to reduce lending rates. At the same time, the Ministry of Planning and Investment also suggested to study the provision of information from authorities to people and businesses on mechanisms and guidelines for investment, equipment installation and handling of environmental problems. Technical problems related to solar power.
In summary, a solar power development mechanism is being proposed to encourage and support investors in installing rooftop solar power systems. This includes exemption or reduction of taxes and fees, exemption from electricity operating licenses and certificates of electricity business registration, along with the ability to borrow capital at favorable interest rates. However, compliance with safety and environmental regulations is essential. In addition, there should be coordination between ministries, localities and functional agencies to provide information and guidance to people and businesses.
This will ensure that the solar power development mechanism is promoted in an efficient and attractive manner, contributing to the increased use of solar power and environmental protection.
Source: Điện Năng Lượng Mặt Trời
