Decree 135/2024/ND-CP plays a crucial role in promoting the development of rooftop solar power for self-production and self-consumption in Vietnam. The decree aims to establish a clear and favorable mechanism for implementing rooftop solar power systems, benefiting businesses, households, and individual organizations alike. This initiative reduces the burden on the national power grid, provides cost-saving opportunities for businesses, and contributes to environmental protection.

The decree applies to all organizations and individuals involved in developing and using rooftop solar power for self-production and self-consumption. This means households can install solar power systems on their rooftops to meet their energy needs without requiring connection to the national power grid

Benefits and Impacts of Decree 135 on Renewable Energy

Decree 135/2024/ND-CP brings significant benefits to organizations, businesses, and communities, promoting renewable energy usage. Firstly, using rooftop solar power reduces dependence on electricity from the national grid, thereby lowering energy costs for households and businesses. For manufacturing enterprises, solar energy helps minimize production costs, providing a competitive advantage in the market.

Secondly, developing rooftop solar power for self-production and self-consumption mitigates the negative impacts of fossil fuel energy on the environment. Solar energy is clean, does not emit greenhouse gases, and aligns with Vietnam's sustainable development strategy. It helps reduce air pollution and protect public health.

Furthermore, this initiative paves the way for advancing new technologies, such as battery energy storage systems (BESS) and smart devices for energy management and optimization. Companies and organizations in this market sector have the potential for sustainable growth.

Regulations and Implementation Policies in Decree 135

Decree 135/2024/ND-CP outlines specific conditions and procedures that organizations and individuals must follow when installing rooftop solar power systems. These regulations include registration processes, safety requirements for electrical systems, and environmental protection and fire safety standards.

One key provision of the decree is the exemption from electricity operation licensing for rooftop solar systems used for self-production and self-consumption. This reduces administrative procedures and encourages businesses and households to participate in the energy transition.

Additionally, rooftop solar systems enjoy tax incentives and simplified administrative processes, making initial implementation more accessible.

The decree also regulates managing and operating grid-connected rooftop solar systems. Organizations and individuals must equip systems with monitoring and technical control devices to ensure safety and stability for the national grid. Systems with capacities of 1,000 kW or more must register with the authorities and comply with technical requirements.

Challenges and Opportunities for Businesses in Rooftop Solar Deployment

While Decree 135/2024/ND-CP creates numerous opportunities, deploying rooftop solar power systems presents certain challenges. The most significant challenge is the upfront investment cost. Although tax incentives and streamlined administrative procedures help reduce financial burdens, installing solar systems still requires substantial capital. For small and medium-sized enterprises, securing funding may be difficult.

Moreover, deploying rooftop solar systems requires in-depth knowledge of technology and legal regulations. Businesses must comply with technical requirements to ensure safety and system quality and maintain and service equipment throughout its lifecycle.

However, the opportunities from this decree are immense. Reduced energy costs help businesses save on production expenses, enhancing market competitiveness. Participation in the renewable energy market also boosts brand image and demonstrates a commitment to sustainability and environmental protection. Businesses can also leverage new technologies, such as energy storage systems, to optimize energy usage efficiency.

Toward Sustainable Development Goals with Renewable Energy

Decree 135/2024/ND-CP is a vital step in Vietnam’s sustainable energy development strategy. It reduces environmental pollution and contributes to the net-zero emissions target that Vietnam has pledged at international climate conferences.

Self-produced and self-consumed rooftop solar power systems ease the burden on the national power grid and drive the growth of industries related to renewable energy. This establishes a solid foundation for Vietnam to achieve 100% renewable energy utilization in the future.

Additionally, developing rooftop solar power raises community awareness about environmental protection and clean energy usage. The government and organizations should continue promoting educational programs to help citizens and businesses understand the benefits of renewable energy.

Conclusion

Decree 135/2024/ND-CP creates significant opportunities for developing rooftop solar power for self-production and self-consumption in Vietnam. The implementation of incentive policies and tax benefits will accelerate energy transitions and support businesses in reducing energy costs while contributing to sustainable development goals. However, success requires close collaboration between the government, businesses, and communities to ensure compliance with the decree's regulations.