A Surprising Proposal for Surplus Rooftop Solar Energy Prices for EVN

According to the Ministry of Industry and Trade, self-generated and self-consumed electricity refers to electricity that is produced and consumed by the same legal entity or individual to meet their own needs.

Regarding the proportion of excess electricity purchased, the Ministry of Industry and Trade proposed two options.

Option 1: Roof-mounted solar power that is self-generated and self-consumed, connected to the national power system, and has a capacity scale according to the approved national power development planning. If there is any surplus, it can be sold to the national power system but not exceeding 20% of the actual installed capacity in the Northern region and not exceeding 10% in other regions (including the Central Highlands).

Option 2: Roof-mounted solar power that is self-generated and self-consumed, connected to the national power system, and has a capacity scale according to the approved national power development planning. If there is any surplus, it can be sold to the national power system but not exceeding 10% of the actual installed capacity.

However, the Ministry of Industry and Trade recommended choosing Option 1 as it follows the direction of the Government’s leaders. This option has the advantage of encouraging the installation of solar power in the North, where radiation energy is the lowest in the country.

Notably, in terms of electricity prices, the Ministry of Industry and Trade said that the price of buying and selling excess electricity fed into the national power system in the current year is applied at a price lower than or equal to the average electricity market price in the previous year, as agreed by the electricity buying and selling parties in accordance with current regulations.

According to this regulation, EVN announced that the average electricity market price in 2023 was 1,091.9 VND/kWh.

If this option is applied, the price for roof-mounted solar power may change compared to the previous proposal, not fixed at 671 VND/kWh (according to EVN’s calculation of average avoided cost in 2023).

Previously, Deputy Prime Minister Tran Hong Ha requested the drafting agency to study the option of increasing the proportion of excess electricity fed into the national grid to 20% of the installed capacity in the North and 10% in the Central and Southern regions.

Regarding the method of determining the price of roof-mounted solar power that is self-generated and self-consumed, the Deputy Prime Minister suggested that the Ministry of Industry and Trade consider and study towards applying a mechanism of compensation or the lowest bid price in the competitive electricity market at the time of purchase.

“In case the investor installs energy storage equipment to become base load electricity that can be dispatched during peak hours, there should also be incentives in terms of tax and credit support, and it should be allowed to dispatch up to 100% of the installed capacity. If it is inconsistent with the planning, the Ministry of Industry and Trade proposed to adjust it when ensuring technology, technique, and cost,” said the Deputy Prime Minister.