Rooftop solar power systems in industrial parks hold significant development potential, driven by the growing demand for clean energy and the decreasing cost of investment. However, in practice, there remain numerous regulatory and operational barriers related to investment, installation, grid connection, and electricity sales within industrial zones that must be promptly addressed.
Rooftop solar power in industrial parks shows substantial growth potential
According to a report from the Electricity Regulatory Authority (Ministry of Industry and Trade), by the end of 2024, renewable energy projects (excluding hydropower) in operation reached a total capacity of 23,253 MW, accounting for 27% of the national power system’s total installed capacity.
As for rooftop solar power, by the end of 2024, Vietnam Electricity (EVN) had been purchasing electricity from 103,170 systems, with a total installed capacity of approximately 9,572.58 MWp. The total energy supplied to the national grid in 2024 was 10.991 billion kWh, making up 3.56% of the country’s total electricity output (308.73 billion kWh).
A WAVE OF KEY POLICIES INTRODUCED
The adjusted National Power Development Plan for the period 2021–2030, with a vision to 2050 (PDP8 – adjusted) has recently been approved by the Prime Minister. The plan clearly states the priority and encouragement of solar power development, aiming for 50% of office buildings and 50% of residential households to utilize self-produced, self-consumed rooftop solar power by 2030 (used for on-site consumption, not for sale to the national grid).
Specific targets include:
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By 2030, the total installed capacity of solar power (including utility-scale and rooftop systems) is expected to reach 46,459–73,416 MW, accounting for 25.3% to 31.1% of the total energy mix.
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By 2050, the capacity is projected to increase to 293,088–295,646 MW, making up 35.3% to 37.8% of the total.
At the recent seminar titled “Promoting Green Energy in Industrial Parks: Solutions for Effective Business Implementation”, Ms. Phan Thị Thu Thủy, Deputy Head of the Electricity Market and Power System Department under the Electricity Regulatory Authority, stated that numerous policies have been introduced to ensure the sustainable development of renewable energy, meeting the country’s electricity demand for socio-economic growth. Key policies include: Law on Electricity No. 61/2024/QH15, which replaces the 2004 Electricity Law, Decree No. 56/2025/NĐ-CP, detailing specific articles related to power development planning under the Electricity Law, Decree No. 58/2025/NĐ-CP, outlining regulations related to renewable energy development, Decision No. 988/QĐ-BCT, issuing the electricity price framework for solar power projects in 2025. Among these, Decree 58/2025/NĐ-CP serves as an important legal foundation that facilitates the development of rooftop solar power systems.
Regarding self-produced, self-consumed rooftop solar systems, Ms. Thủy shared that the government encourages purchasing surplus electricity, up to 20% of the actual monthly electricity output. This incentive is seen as a driving force to expand household-based rooftop solar generation, especially for standalone residential homes.
Despite these supportive policies, Ms. Thủy noted that current regulations do not permit entities outside of Vietnam Electricity Group (EVN) to purchase surplus power. This limitation could restrict the ability of organizations and individuals to develop solar power systems within industrial zones and clusters that fall under the power grid managed by non-EVN wholesale and retail electricity providers.
BARRIERS THAT STILL NEED TO BE UNBLOCKED
According to Mr. Phan Công Tiến, an energy expert from the Institute for Smart Energy Applications Research (iSEAR), Decree No. 57/2025/NĐ-CP which outlines the mechanism for direct power purchase agreements (DPPA) between renewable energy generators and large electricity consumers and Decree No. 58/2025/NĐ-CP have marked an important turning point in promoting flexible energy models. Under these mechanisms, businesses are now allowed not only to install on-site solar power systems for internal use but also to purchase renewable electricity directly from off-site projects through the DPPA framework. However, significant obstacles remain in the implementation of both decrees.
Specifically, under Decree 57, only large electricity users are permitted to participate in DPPA. Retail electricity providers operating within industrial clusters are only allowed to purchase power via the national grid for systems with capacities of 10 MW or more. Meanwhile, according to the 2024 Electricity Law, retail companies are allowed to purchase electricity for resale and are not prohibited from installing rooftop solar systems to resell power to customers. “Therefore, by limiting surplus power purchases from self-producing, self-consuming customers to only EVN, Decree 57 creates inefficiency and poses a major barrier to industrial parks pursuing green transformation and energy autonomy,” Mr. Tiến emphasized.
In addition, the application of a price cap for DPPA transactions via private transmission lines is currently creating difficulties for businesses. In reality, such a price ceiling is only necessary in markets showing signs of monopoly or unfair competition, where government intervention is needed to prevent unreasonable price hikes and protect consumer interests.
With regard to Decree 58, many enterprises and customers operating within retail-based cluster models still face challenges in installing self-produced, self-consumed solar systems. The primary issue stems from the lack of consensus between manufacturing tenants and industrial park operators, despite the decree clearly stating that favorable conditions should be provided for such installations.
Moreover, Decree 58 limits the installed capacity of self-consumption solar power systems to not exceed the user’s peak demand (Pmax), which reduces the economic efficiency of these projects. In reality, solar energy generation is weather-dependent, and output fluctuates throughout the day based on solar radiation. To optimize investment returns, many businesses choose to install systems with capacities larger than their peak load.
“This ‘overcapacity’ allows better utilization of energy during periods of lower sunlight and supports storage solutions,” Mr. Tiến explained. “Excess electricity can be stored and used during low-sunlight periods or at night, thereby enhancing energy autonomy.” He further proposed removing the capacity limit regulation, as most systems are now equipped with anti-reverse power protection devices, which prevent any adverse impact on the grid.
POLICY NEEDED TO ENABLE POWER SALES WITHIN INDUSTRIAL PARKS
In response to ongoing regulatory challenges, representatives of industrial park developers from Hanoi, Hai Phong, Vinh Phuc, Quang Ninh, Bac Ninh, Bac Giang, Hung Yen, Hai Duong, Ha Nam, and Thai Nguyen have proposed that the Government and relevant ministries urgently issue circulars, decrees, and guiding documents to support the implementation of Decree No. 57/2025/NĐ-CP and Decree No. 58/2025/NĐ-CP. These documents should include policies allowing the development of rooftop solar power, investment in electricity infrastructure and grid connections, and authorization for power sales within industrial parks, thereby providing clean energy to businesses operating in industrial and manufacturing zones.
In terms of surplus electricity generation, it is important to note that solar power output heavily depends on the number of sunlight hours throughout the year. As a result, solar energy yields in northern Vietnam are significantly lower than in the southern regions under the same technical specifications. Applying a uniform electricity price cap across all regions disadvantages solar developers in the North and reduces the attractiveness of solar investment there. Meanwhile, Northern Vietnam urgently needs to develop more local generation to prevent overloading the North-South transmission grid and reduce transmission costs. Therefore, a separate pricing mechanism for solar power in Northern Vietnam should be introduced to encourage investment.
Within the industrial park model, facility lessors face regulatory ambiguity over the definition of “self-produced, self-consumed electricity”, making it difficult for tenants to legally purchase renewable energy. As a solution, several industrial park developers have proposed that non-state electricity distributors and retailers operating within industrial parks should be officially recognized as “large electricity users” under current legal definitions. This would allow them to sign DPPA contracts with renewable energy developers, promoting healthy market competition and driving energy prices down. Furthermore, the definition of “self-produced, self-consumed electricity” should simply refer to electricity not exported to the EVN grid, which aligns with the country’s current economic goals.
Additionally, in order to accelerate solar deployment, relevant authorities should promptly issue legal documents that provide clear, detailed guidelines on implementation procedures including investment, planning, construction, environmental protection, and fire safety to ensure consistency and synchronization across all stages of project development.
Source: https://vneconomy.vn/dien-mat-troi-trong-khu-cong-nghiep-can-them-cu-hich-chinh-sach.htm
