The Ho Chi Minh City Renewable Energy Association has submitted a proposal to the Government Office and the Ministry of Industry and Trade, suggesting amendments to the draft Decree revising Decree 57/2025/NĐ-CP on direct power purchase agreements between renewable energy generators and large electricity consumers, and Decree 58/2025/NĐ-CP detailing provisions of the Electricity Law on renewable energy development.
Addressing Key Shortcomings
The Association highlights several shortcomings in the draft decree. Notably, Article 11’s reliance on peak load (Pmax) to determine development capacity is impractical. New homes or factories lack Pmax data, and load demands fluctuate based on production cycles, seasons, or expansion plans. Battery Energy Storage Systems (BESS) operate more flexibly than traditional PV systems. Additionally, households consuming their own power without selling back to the grid are still constrained by Pmax, which is illogical.
The Ho Chi Minh City Renewable Energy Association proposes amendments to enhance renewable energy policies.
The Association recommends revising Article 11 to base solar power development capacity on current electricity demand, load capacity at connection points, and technical equipment standards. For surplus power fed into the grid, metering and payment should follow time-of-use pricing rather than fixed ratios. The Ministry of Industry and Trade should establish transparent guidelines for capacity determination and metering to encourage energy conservation and storage investments.
This approach aligns with practical needs, avoids rigid Pmax constraints, and incentivizes storage systems, ensuring stable, efficient, and flexible solar power operations.
Proposing Tax Exemptions and Zero-Cost Solar Leasing
Regarding incentives, the draft reduces Article 13’s policies from nine (Decree 135/2024/NĐ-CP, Article 8) to three principle-based measures, diminishing public engagement in clean energy adoption.
The Association proposes VAT exemptions for households installing solar systems ≤100 kW. It also advocates for green credit packages (≤5% annual interest) for households and businesses investing in solar and storage systems, backed by the Environmental Protection Fund and Renewable Energy Fund.
Priority credit access, VAT exemptions, and corporate tax waivers are suggested for entities investing in energy storage or self-consumption clean energy systems.
A pilot “zero-cost” solar leasing model is proposed, where energy companies fund systems, and users pay electricity rates below grid prices over 10–15 years. This model, successful in the U.S., Australia, and Europe, accelerates solar adoption without upfront costs.
This initiative enables small and medium-sized solar enterprises to enter the electricity market post-FIT pricing, leveraging their accumulated expertise. Additionally, allowing businesses to lease storage systems to factories, buildings, and malls can reduce peak demand charges and optimize energy management.
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