3 August 2021
Nowadays, the rooftop solar power system project is attracting a lot of attention from domestic and foreign investors. With the aim to legally operate in Vietnam, rooftop solar power projects must be done with the requirements of Vietnam’s prevailing regulations on required licenses as well as authorities’ guidelines.
Through this article, BLawyers Vietnam would like to share with you the necessary licenses to proceed this project.
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Models and requirements for rooftop solar power projects
Rooftop solar power system (“RSPS”) refers solar power system in which solar panels are installable on the roof of the construction. Such RSPS must be less than 1 MW in power, directly or indirectly connected to up-to-35kV power grid of the power purchaser. RSPS must be on the rooftop of construction with independent utilities. Furthermore, such solar panels must have an efficiency of more than 16% and the module’s efficiency must be higher than 15%.
RSPS is permitted to sell a part or all of the electricity produced to the Buyer, which could be Vietnam Electricity (“EVN”) or other organizations or individuals. Currently, RSPS is formed in two models in Vietnam:
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Rooftop owners invest in the construction and installation of solar power systems on their own roofs to use for themselves and sell part of non-used electricity to EVN;
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The enterprise rents the roof to install the EIA system, then sells electricity to the rooftop’s owner and/or EVN.
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Required licenses for rooftop solar power projects
Before performing the RSPS, investors must be certificated by 03 main licenses, including:
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Enterprise Registration Certificate (“ERC”);
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Construction Permit (“CP”); and
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Fire Prevention and Fighting System Certificate (“FPFSC”).
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Enterprise Registration Certificate
Enterprises that want to implement the RSPS projects must have appropriate business lines. Before conducting the project, the enterprise must register or supplement the solar power production industry and/ or the power distribution transmission industry. This content must be registered with the provincial Departments of Planning and Investment.
With respect to foreign investors who are required to obtain the Investment Registration Certificate (“IRC”) before registering enterprise establishment. The IRC should also record enterprise’s object is implementation of RSPS projects.
Furthermore, Vietnamese enterprises may transfer PRPS projects to foreign investors through joint ventures or share transfers. Depending on the scale of the project, the Department or the Ministry of Planning and Investment will handle the project transfer settlement.
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Construction Permit
By law, RSPS is considered as a construction under the prevailing Law on Construction. Thus, the RSPS project is required to obtain the CP before proceeding with the installation, except for some construction projects that are exempt from CP. Investors should cross check with the Provincial or District Department of Construction to determine whether such project requires CP.
Depending on situation of construction works when installing RSPS, investors must obtain the following corresponding licenses:
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New Construction Permit: issued for new projects, constructions, or projects, constructions that have not been commended but whose CP extension period has expired.
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Repair and renovation permit: if the building where the RSPS system was installed has been granted a CP, but when installing the RSPS, changes are made to the original construction structure of the building.
After obtaining all compulsory permits, the project owner must send a notice prior to at least 03 working days in advance of the starting date of the construction, including the case of CP exemption.
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Fire Prevention and Fighting System Certificate
RSPS falls into an investing construction project that must be approved for fire protection designs. Therefore, FPFSC is a compulsory license to operate the RSPS project as prescribed by law. The FPFSC shall be issued by the Police Department of Fire Prevention and Fighting.
Although the RSPS project is implemented in an existing building that satisfies fire protection conditions, it is still necessary to apply for certification of satisfaction of conditions. If the design of an existing building has changed or the system installation at the new building has not been appraised design, the owner must submit a dossier on request for design appraisal to be granted the FPFSC.
In addition to the aforesaid three licenses, investors of RSPS must use the forms of Purchase and Sell Power contracts prescribed by the Ministry of Industry and Trade.
In conclusion, RSPS must have the licenses as regulated to be implemented in practice. Although the general regulations do not require many licenses for the installation and operation of RSPS, the investor must check for specific cases to ensure that the project complies with the laws.
Writer: Linh Nguyen
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