How is the price of rooftop solar power that people sell to EVN calculated?

• The Prime Minister has just issued a Decision amending and supplementing a number of articles of Decision No. 11 dated April 11, 2017 on the mechanism to encourage the development of projects.solar powerin Vietnam. In which, the decision to amend the regulations on electricity prices for rooftop solar power projects.
  

Under the new regulations, the price will be calculated based on the two separate delivery and receipt directions of the meter, instead of the electricity compensation mechanism as in the old regulations. The electricity seller will pay for the amount of electricity received from the grid according to current regulations.

The buyer pays for the amount of electricity generated from the rooftop project to the grid, at the same purchase price as the grid-connected solar power project. The parties are responsible for complying with the provisions of current laws on taxes and fees.

The Prime Minister has just signed a decision to change the way rooftop solar power prices are calculated.

This new regulation is expected to resolve the difficulties in payment mechanisms and electricity price calculation methods that have prevented some localities from signing electricity purchase contracts. The decision takes effect from January 8, 2019.

Previously, Decision No. 11 stipulated that rooftop projects were allowed to implement a net-metering mechanism using a two-way meter system.

During a billing cycle, the amount of electricity generated from rooftop projects that is greater than the amount of electricity consumed will be transferred to the next billing cycle. At the end of the year or at the end of the power purchase agreement, the excess electricity will be sold to the electricity buyer at the electricity price prescribed for grid-connected projects.

Every year, based on the central exchange rate of VND against USD announced by the State Bank of Vietnam on the last exchange rate announcement date of the previous year, the Ministry of Industry and Trade issues the purchase and sale price of solar power for rooftop projects for the following year.

Regarding rooftop solar power, Mr. Dinh Quang Tri, Deputy General Director of Vietnam Electricity Group (EVN), once proposed that the Government further implement rooftop solar power measures and consider this a fundamental solution for the coming time in the face of the current risk of power shortage. Mr. Tri said that each family can install a 3-10 KW solar power plant on the roof, suitable for the low-voltage grid.

"Each family will be proactive in the power source for household appliances. When not using electricity, they can sell it back to EVN. During the day, they can use solar power, which can reduce electricity bills and reduce the amount of electricity consumed by EVN. If they do not use that electricity during the day, EVN's grid will automatically receive it all, with a two-way meter to measure it," said Mr. Tri.

Mr. Tri said that there will be recommendations to banks and credit institutions on supporting capital for people to install solar power. The Deputy General Director of EVN said that the capacity of 3 - 5 KW does not sound large, but if we calculate the total of 30 million households nationwide today and multiply it by that capacity, it will produce 3,000 MW of electricity.