New Regulations to Promote Rooftop Solar Power Development in Vietnam

Introduction

Following the issuance of the Prime Minister’s Directive No. 10/CT-TTg dated 30 March 2026 on strengthening electricity conservation and promoting rooftop solar power development, the Government issued Decree No. 243/2026/ND-CP (“Decree“) on 26 June 2026, which took effect immediately upon issuance. The Decree amends and supplements several provisions of Decree No. 57/2025/ND-CP and Decree No. 58/2025/ND-CP with the objective of facilitating the implementation of the Direct Power Purchase Agreement (“DPPA“) mechanism and accelerating the development of renewable energy.

This Update summarises the key changes introduced by the Decree and provides the key points that the power sector and other stakeholders should take note of.

Key Changes 

Changes to the DPPA Mechanism 

1. Expansion of eligible participants in the DPPA mechanism 

The Decree expands the scope of entities eligible to participate in the DPPA mechanism through dedicated connection lines by adding electricity retailers operating within industrial parks, export processing zones and similar cluster developments to the list of eligible participants. At the same time, it broadens the scope of the category of large electricity consumers. 

This amendment enables a wider range of businesses to participate in the DPPA mechanism and enhances the practical application of direct electricity trading arrangements. 

2. Removal of practical bottlenecks in DPPA implementation

To facilitate the implementation of the DPPA mechanism, the Decree revises various provisions relating to:

• the reference period used to determine electricity consumption for identifying large electricity consumers;

• the determination of electricity prices under the DPPA mechanism; and

• implementation procedures governing direct electricity transactions between renewable energy generators, large electricity consumers and electricity retailers.

The Decree also replaces and supplements several appendices and standard forms to simplify administrative procedures and improve the implementation process. 

3. Increase in the permitted sale of surplus electricity

Under the previous regulations, renewable energy generators and electricity retailers operating within industrial parks or similar developments (where such retailers invest in rooftop solar power systems supplying electricity to large electricity consumers through dedicated connection lines) were permitted to sell surplus electricity to electricity companies up to 20% of their actual electricity output.

The Decree increases this limit to 50% of the actual electricity generated, thereby significantly improving the commercial viability of rooftop solar investments under the DPPA mechanism.

Changes Applicable to Self-produced and Self-consumed Rooftop Solar Power 

4. Relaxation of the regulatory framework

The Decree expands the categories of self-produced and self-consumed rooftop solar power systems that are eligible to sell surplus electricity to the national grid.

In addition, the maximum proportion of surplus electricity permitted to be sold is increased from 20% to 50% of the actual electricity generated.

The Decree further provides a transitional mechanism allowing the sale of surplus electricity in excess of the 50% threshold until 31 December 2030, provided that specified statutory conditions are satisfied.

5. Clearer notification and registration requirements for power source development

The Decree clarifies the circumstances under which investors are required to either notify or register the development of rooftop solar power systems.

The applicable obligation depends on several factors, including:

• the installed generating capacity;
• whether the system is connected to the national power grid; and
• whether the investor intends to sell surplus electricity.

For example:

• Small-scale self-produced and self-consumed rooftop solar systems with a capacity of less than 100 kW that are not connected to the national power grid are exempt from the notification requirement.

• Rooftop solar systems connected to the national power grid at medium-voltage level or above and intended to sell surplus electricity are required to obtain a Power Source Development Registration Certificate (“Registration Certificate”).

Where registration is required, installation of the rooftop solar system may only commence after the Registration Certificate has been issued.

Where only notification is required, installation may proceed if no objection is received from the competent authority within 10 working days from the date the notification is submitted.

6. Revision of application dossiers and standard forms 

The Decree replaces Appendix IV of Decree No. 57/2025/ND-CP and revises various application forms prescribed under that decree.

It also introduces new templates to facilitate the registration process and implementation of the DPPA mechanism.

Key Takeaways

The Decree represents another significant step in Vietnam’s ongoing efforts to promote renewable energy development and encourage private investment in rooftop solar power.

The amendments substantially expand access to the DPPA mechanism, increase the commercial value of rooftop solar projects by permitting higher sales of surplus electricity, simplify administrative procedures, and provide greater regulatory certainty for investors. Collectively, these changes are expected to further accelerate the deployment of rooftop solar systems and support Vietnam’s energy transition objectives.

Further Information

Please feel free to reach out to our contact partners should you have queries on the above development.

For regional Energy & Resources matters, please see Rajah & Tann Asia’s Energy & Resources Practice.

This Update was authored by Partner Vu Thi Que and Partner Trinh Minh Duc.