• Tue. May 21st, 2024

Rooftop Solar Power: Encouraging Self-Consumption or Increasing Operating Costs?

BySamantha Nguyen

Apr 30, 2024
Ministry of Industry and Trade clarifies decision to purchase rooftop solar power at 0 VND

The Ministry of Industry and Trade has warned against connecting rooftop solar power systems to the grid unless they are self-produced and self-consumed, as it would incur system operating costs. In a draft Decree on the mechanism to encourage self-consumed rooftop solar power, the ministry proposed that unconnected systems could be developed without limits. If connected to the grid, individuals have the option to distribute excess output into the system for free. However, experts criticize these regulations for not being attractive enough to encourage investment, as people are not allowed to sell excess power or sell it for free, which is economically ineffective.

The Electricity Regulatory Authority takes a cautious stance on rooftop solar power and believes it should only be used for on-site consumption to avoid system imbalance and unnecessary costs. Rooftop solar capacity currently accounts for over 9% of total capacity in the national electricity system. However, its instability due to solar radiation dependency poses challenges for system balance.

Storage solutions such as battery packs or backup power sources increase costs for both individuals and the electricity industry. The Ministry of Industry and Trade warns that rooftop solar sources are scattered and small-scale, making data collection and system control difficult. Operating rooftop solar power may affect traditional power plants’ capacity, leading to increased operating costs and wasted resources.

Overall, rooftop solar power development brings concerns about system costs and the need for traditional power sources to meet renewable energy uncertainties. Investors of rooftop solar power sources may end up paying costs to ensure system operation while receiving stable power supply despite government incentives to encourage renewable energy.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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