The most common question from firms installing rooftop solar: is a power operation licence required? The answer sits in Decree 135/2024/ND-CP (issued 22 October 2024) — which sets 9 incentive policies for self-consumption rooftop solar, with licence exemption as the first policy but subject to specific conditions.
Three licence-exempt, uncapped cases
Decree 135/2024/ND-CP provides that organisations and individuals installing self-consumption rooftop solar are exempt from power operation licences with no capacity cap in three cases: (a) not connected to the national grid; (b) equipped with anti-backfeed devices preventing export to the national grid; (c) households and single homes under 100 kW.
For factory rooftops in parks with anti-backfeed systems — the most common setup today — firms are licence-exempt with no capacity limit. This marks a major shift from the past, when every system above a threshold needed licensing.
When procedures apply: from 1,000 kW with surplus sales
Organisations and individuals with installed capacity of 1,000 kW or more selling surplus power to the national grid must complete power-planning procedures and apply for a power operation licence. Surplus sold to the grid may not exceed 20% of actual installed capacity — an anti-gaming limit preventing self-consumption policy abuse for power trading.
Beyond the power licence, firms should note: grid-connected systems must meet the power company’s technical standards; and installations must comply with construction and electrical-safety law — licence exemption doesn’t mean exemption from all procedures.
Practical recommendations
For factories using power internally only: choose anti-backfeed for uncapped licence exemption — the simplest path. For large systems wanting surplus sales: prepare planning and licence dossiers early, as these procedures take time. In all cases, sign EPC contracts with reputable contractors and demand clear panel performance warranties — system-quality disputes outnumber licence disputes.
This article has been quality-reviewed by the FLAW AI Legal Council.
Frequently Asked Questions
Does a factory rooftop system for internal use need licensing?
No, if equipped with anti-backfeed devices preventing grid export — this qualifies for licence exemption with no capacity cap under Decree 135/2024/ND-CP. If grid-connected without anti-backfeed, check the exemption conditions carefully.
At what kW must systems register with the power company?
Households under 100 kW are licence-exempt. Organisations and individuals at 1,000 kW or more selling surplus to the grid must complete power-planning procedures and obtain a power operation licence. The 100-1,000 kW band depends on grid connection and surplus sales.
Can surplus power be sold to EVN, and at what price?
Yes, but capped at 20% of actual installed capacity under Decree 135/2024/ND-CP. Surplus purchase prices follow Ministry of Industry and Trade/EVN regulations per period — check current price tables, as rooftop solar pricing has changed multiple times.