Vietnam Introduces Solar Incentives

• Vietnamese Prime Minister Nguyen Xuan Phuc has incentivized solar power projects in the country
• The incentives include land allocation incentives along with tax exemption for imported equipment for solar power projects
• Local utility Vietnam Electricity Corporation (EVN) has been directed to buy all solar power generated from solar power projects
• Local media has reported that the government has fixed the price of 2.086 VND ($0.09)/kWh for all power generated from grid connected solar power projects
• For power generated through rooftop solar projects, the Ministry of Trade and Industry will annually issue buying and selling prices of solar power based on VND/USD exchange rate

The Government of Vietnam has issued directives to support the growth of solar in the country. In its Decision 11/2017/QD-TTg, Prime Minister Nguyen Xuan Phuc has entitled organizations and individuals to mobilize capital to develop solar power projects.

There will be tax exemptions for imported equipment for solar power projects, along with other land allocation incentives, according to VGP News, the online newspaper of the government.

Provincial-level People's Committees will now have the power to allocate land for solar power projects.

Organizations or individuals who wish to set up solar power projects in the country are eligible for these incentives. All solar power generated by these projects will be bought by local utility Vietnam Electricity Corporation (EVN) and its authorized members, according to Vietnam Breaking News.com (VBN). They need to buy power for a period of 20 years.

VBN reported, "For power grid-connected projects, the buyer shall buy all of the projects' output at 2,086 VND (0.09 USD) per kWh (excluding VAT), and subject to changes according to the VND/USD exchange rate. The Ministry of Trade and Industry will annually issue the buying and selling prices of solar power produced by roof-based solar power projects based on the VND/USD exchange rate."

The new directives will be effective from June 1, 2017, and will remain in effect until June 30, 2019.