Scenario: a factory owner wants rooftop solar for “self-production, self-consumption” but is confused: any licence needed, who buys the surplus, at what price? Decree 135/2024/ND-CP (issued 22 October 2024) is the answering document — but a “living” one, with amendment proposals on the table.
Core principle: self-produce, self-consume first
The spirit of Decree 135/2024: encouraging organisations and individuals to install rooftop solar for on-site consumption, relieving pressure on the national grid. Systems with or without grid connection are covered, but the priority logic is on-site consumption — not building a “mini power plant to sell electricity”. This fundamentally differs from the old FIT era (preferential fixed prices): current policy does not encourage mass selling into the grid.
Surplus power: sellable but capped
The hottest question: surplus power may flow into the grid, but not exceeding 10% of installed capacity — at a purchase price set by the competent authority (far below golden-era FIT rates). Deployment reality: many investors were “disillusioned” after modelling returns on FIT-era selling expectations; the correct math for self-consumption rooftop solar is savings on grid electricity purchases (high retail tariffs), not surplus-sale revenue.
Licence exemptions and proposed amendments
Decree 135/2024 provides exemptions from electricity operation licences for small self-consumption systems — materially lighter procedures than commercial power projects. Procedures: registration/notification with the competent authority and a grid-connection agreement with the power company (if grid-connected). MOIT is now proposing amendments to Decree 135/2024: raising the surplus-sale cap, simplifying registration and clarifying battery storage pairing — investors should follow the draft before locking system size.
Recommended actions
1. Model returns on “electricity bill saved”, not “surplus power sold”. 2. Size capacity around self-consumption needs plus the 10% surplus cap. 3. Complete registration and connection agreements before installation. 4. Track the draft amendments to Decree 135/2024 — they may change the math in 2026.
Frequently Asked Questions
What capacity is exempt from electricity licences?
Decree 135/2024/ND-CP exempts small self-consumption rooftop solar systems from electricity operation licences — materially lighter than commercial power projects. Check the decree for specific scale and conditions; large or commercial-purpose systems remain regulated like ordinary power projects.
Can surplus power be sold to the grid, and at what price?
Yes, but surplus fed into the grid must not exceed 10% of installed capacity; the purchase price is set by the competent authority, far below old FIT rates. The correct return math is savings on grid electricity purchases, not surplus-sale revenue.
What are the registration and connection procedures?
Register/notify the competent authority and sign a grid-connection agreement with the power company for grid-connected systems. Complete procedures before installation to avoid rework.
What do the proposed amendments to Decree 135/2024 contain?
MOIT proposes: raising the surplus-sale cap, simplifying registration and clarifying battery storage pairing. Investors should follow the draft before locking system size, as it may change the economics in 2026.
What is the policy on pairing battery storage with rooftop solar?
The mechanism for pairing storage (BESS) with self-consumption rooftop solar is not yet complete — one of the items proposed for clarification in the Decree 135/2024 amendments. Installing batteries now needs careful economics without a storage-service pricing mechanism.
How does self-consumption rooftop solar differ from the FIT era?
FIT era (expired): preferential fixed purchase prices encouraging grid sales. Decree 135/2024: on-site consumption first, with grid surplus capped at 10% of capacity at low prices — the policy does not encourage “mini power plants for selling electricity”.
