New project to enhance solar power development
Updated at Monday, 17 Apr 2017, 17:10
The Hanoitimes - Under Decision 11/2017/QD-TTg, organizations and individuals engaging in solar development projects will get preferential benefits on investment, tax, and land.
Specifically, the organizations and individuals will be allowed to mobilize capital from domestic and foreign organizations and individuals to develop solar power projects in line with current regulations. Solar power projects will enjoy tax exemption for imported equipment unproduced domestically and land allocation incentives.
Provincial-level People’s Committees were authorized to allocate land for solar power projects. Compensation for site clearance will be conducted in line with the current regulations. The construction of solar power projects must be conducted in accordance with current regulations on investment, building, fire prevention, environmental protection, and relevant others.
Numerous incentives will be offered for solar-power energy projects in Vietnam, according to a recently-issued decision from Prime Minister Nguyen Xuan Phuc that takes effective from June 1, 2017 – June 30, 2019. Any organisations or individuals involved in solar power projects in Vietnam will be eligible for the incentives.
The solar power output will be bought by the Electricity of Vietnam and its authorised members. Organisations and individuals with licenses for supplying power for the national grid can sell the power, or anyone who wants to sell their unused solar power.
According to the decision, the buyer is required to buy all the output of solar power projects, with 20-year contract terms.Solar power generating projects will enjoy tax exemptions for importing goods for their fixed assets. Solar power projects will also enjoy corporate income tax exemptions and reductions.
For power grid-connected projects, the buyer shall buy all of the projects’ output at 2,086 VND (0.09 USD) per kWh (excluding VAT), and subject to changes according to the VND/USD exchange rate. The Ministry of Trade and Industry will annually issue the buying and selling prices of solar power produced by roof-based solar power projects based on the VND/USD exchange rate.
Translated by Anh Kiet