Solar power at 9.35 Uscents per kWh until 30 June 2019 in Vietnam
Decision No. 11/2017/QD-TTg issued by the Prime Minister dated April 11th, 2017 regarding incentive mechanism for developing solar power projects in Vietnam with buying price at 9.35 Uscents per kW. EVN, the sole buyer will be obliged to buy the whole generation output from on–grid solar power projects with the feed-in tariff at the delivery point of Uscents 9.35 per kWh (added tax 10% excluded) and the tariff is applicable to only on-grid projects having solar cell efficiency rate at more than 16% or module bigger than 15%.
Import duty will be exempted on commodities to be imported as fixed assets of solar energy projects, solar power equipments are mainly solar module and solar inverter, export and import duties imposed on commodities to be imported for production such as solar materials and solar semi-products which are not domestically manufactured will be complied with the current legal regulations of Vietnam.
Power lines and substations to connect solar power projects into the power grid, fees on land use, land lease, water surface lease will be exempted and relieved as per the current legal regulations applicable to solar energy projects in the investment area.
Decision is valid from June 1st, 2017 until June 30th, 2019, and for rooftop solar PV projects will be entitled to benefit from an electricity balancing mechanism by using two-way meter system (Net-metering). Within a payment period, if the output generated from a rooftop solar energy project is bigger than the electricity amount consumed, the surplus amount will be shifted to the subsequent payment period. When a year ends or the power purchase agreement is terminated, the surplus electricity amount will be sold to the buyer at a regulated price at 9.35 Uscents per kW.