Decree No. 58/2025/ND-CP | Incentive policy for the development of renewable energy

On March 3, 2025, the Government issued Decree No. 58/2025/ND-CP, which sets forth new detailed provisions under the Law on Electricity concerning the development of renewable energy and new energy. This decree not only establishes incentive mechanisms but also provides specific regulations to optimize the development of clean energy sources, particularly rooftop solar power.

Key points of Decree No. 58/2025/ND-CP

Incentive mechanism for electricity storage systems

The decree stipulates that renewable energy projects equipped with electricity storage systems and connected to the national power system will be prioritized during peak demand periods, except for self-produced and self-consumed electricity.

Incentive policy for research and development

The decree encourages and supports the research and development of technology in the wind and solar sectors in Vietnam, in accordance with Article 8 of the Law on Electricity and related legal provisions.

The state will prioritize research, development, and application of science and technology in the production of photovoltaic panels, wind turbines, and power conversion equipment.

Other preferential policies and support shall be provided in accordance with current legal provisions.

Facilitation for rooftop solar development

The decree clearly defines the responsibilities of industrial parks, export processing zones, high-tech zones, and economic zones in supporting the development of rooftop solar systems. This includes coordination:

• The electricity sector to ensure safe and stable operation
• Assisting businesses in completing legal procedures

Transitional rules for rooftop solar systems:

The decree provides specific transitional rules for existing rooftop solar systems:

• Systems installed before January 1, 2021, that have already sold electricity, cannot expand capacity without an additional agreement.
• Systems installed between January 1, 2021, and the effective date of the decree but have not completed all procedures under Decree No. 135/2024/ND-CP must comply with the new regulations.
• Registered applications that are not yet complete may continue under current regulations.

Effective date and replacement of previous provisions:

Decree No. 58/2025/ND-CP takes effect immediately upon issuance and replaces the related provisions on rooftop solar incentive mechanisms contained in Decree No. 135/2024/ND-CP.

Significance for businesses

With clear regulations and specific support mechanisms, Decree No. 58/2025/ND-CP is expected to:

• Provide strong incentives for businesses and households to invest in rooftop solar.
• Help reduce energy costs and optimize production and operational efficiency.
• Support the implementation of emission reduction commitments, contributing to Vietnam’s goal of Net Zero.

For detailed information on Decree No. 58/2025/ND-CP (Vietnamese), please click here.