Decree No. 58/2025/ND-CP introduces detailed regulations and new incentives for renewable energy development, with specific provisions for rooftop solar self-consumption systems.

On March 3, 2025, the Government of Vietnam issued Decree No. 58/2025/ND-CP detailing several articles of the Law on Electricity regarding the development of renewable energy and new energy sources. This Decree takes effect from the date of signing and provides more detailed guidance compared to Decree No. 135/2024/ND-CP.

Key Highlights of Decree No. 58/2025/ND-CP

Revised Framework for Rooftop Solar Self-Consumption 

The Decree clearly defines the maximum installed capacity (Pmax) based on existing meter parameters and the customer’s actual load to ensure compatibility. It continues to support self-produced and self-consumed rooftop solar systems while allowing the sale of surplus electricity, capped at 20% of the calculated output according to the provincial PVout coefficient.

Strong Support for Energy Storage Integration 

Projects integrating Battery Energy Storage Systems (BESS) receive priority from the State. This helps optimize self-consumption, reduce pressure on the national grid, and improve system stability.

Investment and Tax Incentives 

Renewable energy projects enjoy exemption from land and sea surface fees during the basic construction phase (maximum 3 years), followed by a 50% reduction for the subsequent 9 to 12 years depending on project type.

Enhanced Grid Safety and Management 

Load dispatch centers have the authority to curtail or stop output from systems of 100 kW and above if there is a threat to power system safety. The Decree also promotes a “one-stop shop” mechanism through the provincial Department of Industry and Trade (DOIT) for faster registration and approval.

Long-term Power Purchase Contracts 

Minimum contract terms of 12 years are established for certain renewable energy projects to ensure financial viability and debt repayment capability.

Decree No. 58/2025/ND-CP represents an important policy refinement that strengthens the legal framework for rooftop solar and renewable energy development in Vietnam, balancing strong investment incentives with grid stability and sustainable growth.

We, SOMEC, are following all the related regulations strictly and legally.

*Source for full reference and implementation (Decree No. 58/2025/ND-CP dated March 3, 2025 of Ministry of Industry and Trade): https://datafiles.chinhphu.vn/cpp/files/vbpq/2025/3/58-nd.signed.pdf

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