Vietnam Rooftop Solar: New Tariffs and Self-Consumption Rules

What are the main 2025 policy shifts around rooftop solar, energy and ESG for factories in Vietnam?

The 2025 focus for factories in Vietnam is on self-consumption rooftop solar, decarbonisation and grid stability, rather than uncontrolled FiT-driven exports. Policy under PDP8 and related decisions pushes factories to reduce their own grid demand and emissions while only allowing exports to EVN within carefully defined technical and contractual limits.

For a manufacturing or logistics business, the practical results are:

• Priority for on-site generation that matches your load profile and reduces your energy cost and ESG footprint.
• Tighter technical rules on grid connection and power quality, especially for larger rooftop systems.
• More scrutiny of environmental and fire safety compliance, panel waste and ESG reporting.
• A shift from automatic, one-size-fits-all FiTs to category-based tariffs or negotiated prices reflecting grid conditions.

Key legal and policy instruments to watch include:

• Power Development Plan VIII (PDP8) - approved by Decision 500/QD-TTg (2023) and subsequently amended/implemented by MOIT guidance.
• Law on Electricity (as amended) and guiding circulars on power purchase agreements and grid connection.
• Law on Environmental Protection 2020 and Decree 08/2022/ND-CP for environmental procedures and ESG reporting obligations.
• The latest Prime Minister Decision and MOIT circular on rooftop solar tariffs and model PPAs - these define the 2025 VND/kWh pricing and eligibility conditions.

What rooftop solar tariff options and VND/kWh rates apply to factories in Vietnam in 2025?

Rooftop solar in 2025 typically falls into several tariff categories: pure self-consumption (no export), partial export of surplus to EVN, and full-sale or third-party models. Each category has its own VND/kWh pricing method, documentation and grid rules; factories must match their commercial model to the correct legal category to avoid breaching the tariff regime.

Important limitation: my training data runs only to October 2024, so I cannot quote the exact 2025 VND/kWh numbers from the most recent decisions. Instead, this section explains how the tariff table is usually structured and how to read and model it correctly using the official documents you obtain from MOIT/EVN or your advisor.

Typical tariff categories that affect factories

• Category A - 100% self-consumption
  All energy is used on site, no export. You save your retail tariff (industrial TOU tariffs in VND/kWh) rather than earn a FiT. Often the lightest regulatory and metering burden.
• Category B - Self-consumption with surplus export to EVN
  Your rooftop system primarily covers internal load, but any unconsumed energy is exported under a defined tariff or netting mechanism. Requires a PPA or supplemental agreement with the local EVN entity.
• Category C - Full-sale rooftop (merchant or investor-owned)
  A third-party investor installs rooftop solar on your factory and sells all output to EVN, or to you under a private PPA. Where exports to EVN occur, they follow the dedicated export tariff class.
• Category D - Behind-the-meter wheeling / direct PPA pilots
  Limited, more complex structures where power is wheeled to an offtaker under MOIT pilot programmes; most factories will not start here, but larger groups may consider it.

How the 2025 VND/kWh tariffs are usually structured

The 2025 decision is likely to provide a tariff table with values that vary by project type and technical characteristics rather than a single nationwide FiT. You should expect differentiation along lines such as:

• Capacity (for example: up to 1 MW, 1-3 MW, over 3 MW)
• Connection voltage level (low voltage vs medium voltage)
• System purpose (self-consumption with surplus vs dedicated sale to EVN)
• Region or grid area (to reflect congestion or local constraints)
• Time-of-use (flat tariff vs higher peak/higher daytime rates)

How to read and apply the tariff table

1. Identify your system type (A, B, or C above), installed capacity (kWp/MWp) and connection point.
2. Locate the matching row in the official tariff schedule attached to the new decision (normally an Annex in VND/kWh).
3. Check whether the tariff is indexed to inflation or exchange rate and how often MOIT/ERAV can adjust it.
4. Confirm the tariff validity period (for example, 20 years from COD vs a shorter fixed window).
5. Model your cash flows using conservative assumptions (generation profile, curtailment risk, grid outages) rather than raw kWh times the headline tariff.

Illustrative comparison of rooftop solar options for factories

Use this table as a framework. Replace "As per latest decision" with the actual numbers from the 2025 tariff schedule once you have them.

Can factories in Vietnam sell excess rooftop solar electricity to EVN in 2025, or only self-consume?

Most factories in 2025 can technically sell surplus rooftop solar to EVN, but only if their system configuration, metering and contracts comply with the specific export categories in the latest tariff regime. Small, pure self-consumption systems that physically prevent export or are configured not to inject power into the grid will not have that option but benefit from simpler compliance.

Key legal and technical conditions for selling excess power

To export and receive payment from EVN, you generally need to satisfy all of the following:

• Eligible project type: Your rooftop system must fall within the capacity and usage limits that the newest decision classifies as export-eligible.
• Grid connection agreement with the relevant EVN unit (Northern, Central, Southern Power Corp or local PC), including clear rights and curtailment provisions.
• Power purchase agreement (PPA) using the model form or a negotiated PPA structure approved or accepted by EVN and compliant with MOIT circulars.
• Bidirectional metering that separately records import and export, calibrated and sealed according to EVN technical standards.
• Technical protection (relays, anti-islanding, voltage/frequency protections) ensuring no negative impact on the grid.

Common restrictions that limit export in practice

• Capacity thresholds: Projects above a certain MW level may face a cap or need separate PDP8 consistency review before being allowed to export.
• Network constraints: If the local feeder is overloaded at midday, EVN may restrict export or impose curtailment clauses and lower effective revenues.
• Purpose of system: Some 2025 rules can privilege "self-consumption-first" systems and limit pure merchant export from rooftops.
• Pilot-only mechanisms: Innovative models like net-metering or peer-to-peer may be allowed only under pilots with strict geographic or volume caps.

How a factory should decide whether to plan for export

1. Map your hourly load profile (12 months if possible) and compare it to expected solar generation.
2. If daytime load is consistently high, a self-consumption-only design may already absorb almost all output, making export marginal.
3. If you foresee significant surplus, obtain from EVN your local grid capacity assessment and eligibility for export tariff classes.
4. Compare project IRR for:
   • Self-consumption only, sized to match base load
   • Larger system with surplus export under the 2025 export tariff
5. Decide whether the extra export revenue justifies the additional regulatory and technical complexity.

What incentives apply if your factory uses 100% of its own rooftop solar power in Vietnam?

Factories that use 100% of their own rooftop solar power typically benefit from simpler procedures, lower regulatory risk and potentially more favourable tax and ESG treatment than export-focused projects. The financial value usually comes from avoided grid tariffs and reduced emissions rather than FiT-style income.

Regulatory and procedural advantages of 100% self-consumption

• Reduced licensing burden: Small and medium rooftop systems used only for self-consumption may not require a power generation licence, only notification and grid-connection technical clearance.
• Simpler metering: No need for revenue-grade export metering or complex settlement; consumption reduction is visible directly in your EVN bills.
• Lower risk of retroactive policy changes: Authorities are more likely to adjust export tariffs than to disrupt behind-the-meter savings.
• Faster implementation: Less documentation and negotiation with EVN; focus shifts to building permits, fire safety and structural checks.

Tax and financial incentives commonly accessible to self-consumption projects

The concrete incentives depend on location and whether your project qualifies as part of an "encouraged sector" under the Law on Investment and local incentive lists. In practice, factories often unlock some or all of the following:

• Corporate income tax (CIT) benefits: If the rooftop project is part of an investment project in renewable energy or energy efficiency, it may qualify for reduced CIT rates or tax holidays defined in the investment registration certificate (IRC) or local policies.
• Accelerated depreciation: You may opt for faster depreciation of solar assets, bringing forward tax-deductible expenses and improving project NPV.
• Import duty relief: High-efficiency panels, inverters and certain equipment can benefit from reduced or zero import duties if classified correctly and used for renewable energy.
• ESG-driven financing: Banks and multilaterals increasingly provide green loans with better terms for self-consumption rooftop projects with clear emissions reduction metrics.

ESG and commercial value of 100% self-consumption

• Scope 2 emissions reduction: You can directly reduce your purchased electricity emissions, which is critical for export-oriented factories under CBAM and supply-chain reporting pressures.
• Customer and brand value: Buyers increasingly request audited renewable energy usage; 100% self-consumption systems are straightforward to explain and certify.
• Less volatility in power bills: Hedging against future grid tariff increases in VND/kWh by locking in a predictable levelised cost of energy from your rooftop asset.

How do grid connection and PDP8 procedures work for factory rooftop solar in Vietnam?

Grid connection for factory rooftop solar follows a step-by-step technical and contractual process with the local EVN entity, guided by MOIT regulations and PDP8 implementation. Smaller self-consumption systems face streamlined procedures, while larger or export projects must show consistency with the provincial PDP8 plan and meet stricter technical standards.

Step-by-step grid connection process

1. Pre-feasibility and load study
   • Assess your existing connection contract, available capacity and typical load from EVN bills.
   • Engage a consultant to simulate rooftop generation vs load and estimate backfeed risk.
2. Technical dossier preparation
   • Single-line diagrams, layout, inverter specs, protection schemes, anti-islanding features.
   • Structural drawings and fire-fighting measures for rooftop works.
3. Submission to local power company
   • Submit dossier to the relevant EVN subsidiary or district power company.
   • Request a grid connection approval and technical conditions letter.
4. EVN technical assessment
   • EVN evaluates transformer capacity, feeder loading and voltage profiles.
   • Where needed, EVN may request upgrades or impose export limits and protection settings.
5. Signing grid connection agreement
   • Formalize the rights and obligations for connection, including outage coordination and safety rules.
   • For export projects, this often links to or references the PPA.
6. Installation, testing and commissioning
   • Install equipment per approved design; coordinate witness testing with EVN.
   • Calibrate and seal meters; conduct trial operation and verify automatic disconnection functions.
7. Commercial operation date (COD) and settlement
   • EVN issues COD confirmation; from this date, you can officially save on bills and, if applicable, bill export energy.
   • Billing cycles and dispute mechanisms follow the PPA and connection agreement.

PDP8 and provincial planning requirements

• Smaller self-consumption projects: Often do not require inclusion as separate items in PDP8, as long as they meet capacity limits set in MOIT guidance.
• Larger or export projects: May need to be listed in or at least be consistent with the provincial PDP8 implementation plan; DOIT often acts as gatekeeper here.
• New substations or line upgrades: If your rooftop project triggers grid reinforcement, that investment and timeline must align with PDP8 priorities.
• Timeline: Simple rooftop approvals can be obtained in a few weeks; projects involving network upgrades or PDP8 alignment can take several months.

What ESG, environmental and compliance issues should factories consider for rooftop solar in Vietnam?

Rooftop solar projects for factories in Vietnam trigger a series of ESG and environmental obligations around safety, waste, reporting and community impact. Managing these proactively can both reduce legal risk and strengthen your ESG profile for lenders and customers.

Key environmental and permitting issues

• Environmental impact procedures:
  • Under the Law on Environmental Protection 2020, many rooftop systems only require environmental registration, not a full EIA, but large complexes or those bundled with other expansions may trigger EIA obligations.
  • Check Decree 08/2022/ND-CP to determine whether your overall project (not only solar) crosses threshold criteria.
• Fire safety and construction permits:
  • Factories typically must obtain approval from the Fire Prevention and Fighting Police for rooftop modifications and DC cabling layouts.
  • Where rooftop structures change significantly, local construction authorities may require building permit adjustments.
• Waste management:
  • Solar panels and inverters at end-of-life qualify as industrial waste; hazardous elements must be handled by licensed waste contractors.
  • Including a take-back or recycling clause in EPC or supply contracts is increasingly viewed as ESG best practice.

ESG reporting and supply-chain expectations

• Greenhouse gas accounting: Many export manufacturers now quantify their Scope 2 emissions and renewable share using rooftop solar metering data, often verified by third-party auditors.
• Supplier codes of conduct: Global buyers may expect documented renewable energy usage, safety records for rooftop installation work, and panel sourcing from suppliers that respect labour and environmental standards.
• Financial ESG covenants: Green loans and sustainability-linked loans may tie interest margins to achieving a specific percentage of on-site renewable consumption or GHG reduction relative to baseline.

When should you hire a lawyer or expert for rooftop solar and ESG matters in Vietnam?

You should bring in legal and technical experts as soon as you move from high-level interest to concrete project structuring, especially if you plan to export power or use third-party financing. Early advice usually costs less than fixing an improperly structured EPC contract, PPA or grid connection arrangement later.

Situations where expert help is strongly recommended

• Evaluating 2025 tariffs and PPA terms: A lawyer familiar with MOIT practice can benchmark the proposed PPA against the model form, clarify tariff adjustment clauses and allocate curtailment and force majeure risk.
• Structuring investor or lease models: If a solar developer finances and owns the system on your roof, you need robust rooftop lease or cooperation contracts, with clear allocation of asset ownership, insurance, liability and buy-out options.
• Complex permitting or PDP8 alignment: For projects close to capacity thresholds or in congested regions, counsel can navigate DOIT, EVN and planning issues and document risk allocation in contracts.
• Tax planning and incentives: Tax advisors can structure depreciation, loss carry-forward and possible CIT incentives to maximise your after-tax project value.
• ESG strategy and reporting: ESG consultants or auditors can translate your rooftop project into credible KPIs and reports that meet international standards (GRI, ISSB, etc.).

What are the practical next steps for a factory planning rooftop solar in Vietnam?

The most effective approach is to combine a quick technical-screening phase with early legal and financial checks, then move into detailed design and contracting once you confirm feasibility. Treat rooftop solar as an integrated energy and ESG project, not just a construction job on your roof.

Actionable roadmap for factory owners

1. Gather internal data
   • Collect 12-24 months of EVN bills with hourly or TOU breakdowns.
   • Compile roof layouts, structural drawings and any planned expansions.
2. Initial technical and financial screening
   • Ask a reputable EPC or consultant to provide a preliminary system design sized to your daytime load.
   • Model self-consumption-only economics first, then evaluate whether surplus export materially improves IRR under the 2025 tariff regime.
3. Legal and regulatory review
   • Have counsel map your project against the current rooftop solar decision, MOIT circulars and PDP8 implementation in your province.
   • Identify which licences, notifications and agreements are required and estimate realistic timelines.
4. Select business model and partners
   • Decide between own-capex vs third-party investor models based on your balance sheet and risk appetite.
   • Shortlist contractors or developers with proven EVN and factory experience, not just residential or small commercial portfolios.
5. Negotiate core contracts
   • Finalize EPC, O&M, rooftop lease (if any) and PPA or energy supply agreements, with clear performance guarantees and ESG clauses.
   • Align contract conditions with grid connection requirements and your lender's expectations if the project is financed.
6. Implement, monitor and report
   • Oversee construction with strong safety and quality control.
   • After COD, track performance, savings and emissions reductions, and feed data into your ESG and customer reporting.

By following these steps and grounding your decisions in the actual 2025 tariff tables and PDP8 rules, your factory can turn rooftop solar into a reliable tool for cost reduction, regulatory compliance and ESG advantage in Vietnam.