Decree 243/2026: Key Updates on DPPA & Rooftop Solar

Decree 243/2026

On June 26, 2026, the Government issued Decree No. 243/2026/ND-CP, which took effect on the same date. The Decree amends and supplements certain provisions of Decree No. 57/2025/ND-CP on the direct power purchase mechanism and Decree No. 58/2025/ND-CP on the development of renewable and new energy power.

This is a notable adjustment to Vietnam’s renewable energy market. The new provisions not only expand participation in the direct power purchase mechanism, commonly referred to as DPPA, but also revise the mechanism for purchasing surplus electricity from self-produced and self-consumed rooftop solar systems.

For manufacturers, industrial parks, electricity retailers, data centers, EV charging infrastructure operators, and energy investors, Decree 243 creates additional pathways to access renewable electricity. However, these new opportunities also come with specific requirements regarding eligible participants, grid connection, metering, grid hosting capacity, and legal procedures.

What Does Decree 243/2026/ND-CP Change?

Decree 243 focuses on two main areas.

First, it expands and further develops the direct power purchase mechanism between renewable energy generators, large electricity users, and electricity retailers operating within industrial zones, clusters, and similar models.

Second, it revises the mechanism for developing and purchasing surplus electricity from self-produced and self-consumed rooftop solar systems. One of the most notable changes is the increase in the permitted surplus electricity purchase ratio from a maximum of 20% to a maximum of 50%.

Decree 243 does not fully replace Decree 57 and Decree 58. When assessing or implementing a project, businesses must still review the original decrees together with the amended and supplemented provisions.

Expansion of Eligible Participants in the DPPA MechanismDPPA

One of the key changes is the addition of electricity retailers operating within zone and cluster models to the group of entities eligible to participate in the direct power purchase mechanism.

The covered models include industrial parks, economic zones, export processing zones, industrial clusters, high-tech zones, centralized digital technology zones, high-tech agricultural zones, urban areas, and free trade zones. For direct power purchase through the national grid, electricity retailers in urban areas and free trade zones are not included in the newly expanded group.

This change has practical implications for factories located within industrial parks or export processing zones. Previously, electricity retailers within these areas primarily appeared in the mechanism as entities authorized by large electricity users. Under the new regulations, these retailers may participate more directly in renewable electricity trading structures.

The Decree also expands the group of large electricity users eligible to participate in DPPA. In addition to customers using electricity for manufacturing activities, the newly included groups cover customers using electricity for data centers, EV charging stations or charging points, and battery swapping cabinets serving commercial electric mobility operations.

These customers must purchase electricity from a Power Corporation, Power Company, or electricity retailer and be connected at a voltage level of 22 kV or higher.

The inclusion of data centers and EV charging infrastructure reflects a shift in electricity demand. Demand for renewable energy is no longer limited to traditional manufacturing sectors, but is also emerging across digital infrastructure, logistics, and transport electrification.

Two Forms of Direct Power Purchase Continue to Apply

Decree 243 continues to maintain two forms of DPPA.

Direct Power Purchase Through a Private Connection Grid

Under this model, the renewable energy source and the customer are directly connected through a dedicated transmission line or private electrical system.

In addition to transactions between renewable energy generators and large electricity users, the new regulations add the case where a generator sells electricity to an electricity retailer operating within a zone or cluster. The retailer may also invest in renewable energy generation and sell electricity directly to large customers within its management area.

This model may be suitable where the renewable energy source and the load are located close to each other or operate within the same area with private electrical infrastructure. However, the parties must still comply with requirements relating to licenses, electrical safety, grid connection, metering, and internal network use.

Direct Power Purchase Through the National Grid

Under this model, the renewable energy generator sells electricity into the spot electricity market. The eligible large electricity user or electricity retailer enters into a forward electricity contract with the generator, while continuing to maintain an electricity purchase agreement with the relevant Power Corporation or Power Company to ensure full electricity supply.

DPPA through the national grid therefore does not mean that each specific kWh of renewable electricity is physically transferred from one renewable energy plant to one particular customer. Instead, it is a transaction mechanism involving the electricity market, power utilities, and associated settlement contracts.

Surplus Rooftop Solar Electricity Purchase Ratio Increased to 50%

One of the most widely discussed changes in Decree 243 is the amendment to Article 14 of Decree 58/2025/ND-CP.

Under the new regulation, surplus electricity may be purchased under an agreement between the seller and buyer, but must not exceed 50% of the electricity generated at the output of the rooftop solar power source, based on solar irradiation conditions. Before the amendment, the maximum limit under Decree 58 was 20%.

From the effective date of the Decree until December 31, 2030, the parties may agree to purchase surplus electricity at a ratio higher than 50% if all of the following conditions are met:

  • The grid at the connection point has sufficient hosting capacity.
  • The purchase of surplus electricity ensures safe grid operation.
  • The arrangement is consistent with the power system operating method.

For mountainous, border, or island areas that are not supplied by the national power system, the amount of surplus electricity that may be sold is not subject to this limit.

However, the 50% figure should be understood as a regulatory ceiling permitted under the agreement mechanism, not as a guarantee that every project will automatically be allowed to sell that proportion of surplus electricity. Actual sales will still depend on the type of generation source, connection conditions, grid hosting capacity, metering arrangements, and the power purchase agreement with the buyer.

Which Rooftop Solar Systems Are Eligible to Sell Surplus Electricity?

Decree 243 identifies five groups of self-produced and self-consumed rooftop solar systems that may sell surplus electricity:

  1. Systems installed by households using individual residential houses.
  2. Systems connected to the national grid at low voltage.
  3. Systems located in mountainous, border, or island areas with local power networks that are not connected to the national grid.
  4. Systems installed on public assets.
  5. Other rooftop solar systems connected to the national grid and falling within the capacity scale specified in the relevant power development plan, plan implementation scheme, or electricity supply network development plan under the provincial planning framework.

Therefore, not every corporate rooftop solar system automatically qualifies to sell surplus electricity. For medium-voltage connected projects, planning status, capacity scale, and connection arrangements should be reviewed from the project development stage.

How Is Electricity from BESS Treated?

Decree 243 clarifies that surplus electricity eligible for sale may include both direct surplus electricity from the rooftop solar system and electricity discharged from an energy storage system that was charged using electricity from that same rooftop solar source.

Electricity output is measured at the inverter output.

This provision provides additional regulatory basis for the development of combined rooftop solar and BESS systems. Instead of exporting electricity immediately when on-site load is low, part of the solar output may be stored and used or discharged at another time.

However, the BESS must be designed with appropriate metering and control systems. If the storage system can be charged from both solar power and grid electricity, the technical design must distinguish between the two electricity sources to avoid treating stored grid electricity as surplus renewable electricity.

Surplus Electricity Purchase Price Is Not the EVN Retail Tariff

The purchase price for surplus electricity is determined based on the average electricity market energy price of the immediately preceding year, as published by the electricity market transaction operator.

If this price is higher than the maximum price under the generation tariff framework applicable to ground-mounted solar power without energy storage in the relevant region, the surplus electricity purchase price is capped at the corresponding maximum tariff, excluding value-added tax.

Businesses should therefore not use the retail electricity tariff they currently pay to EVN when estimating revenue from surplus electricity sales. Self-consumed electricity and surplus electricity sold to the grid have different value mechanisms.

Self-consumed electricity allows the business to avoid purchasing an equivalent amount of electricity from the grid. Surplus electricity, by contrast, is settled under a separate pricing mechanism and remains subject to legal, technical, and grid hosting conditions.

What Should Businesses Consider When Developing an Investment Plan?

From a project development perspective, Decree 243 creates more room for rooftop solar, DPPA, and BESS. However, businesses should not select system capacity based only on available roof area or on the assumption that 50% of surplus electricity can be sold.

Before investing, four groups of factors should be reviewed.

First, the energy objective. A project designed to reduce on-site electricity costs, participate in DPPA, sell surplus electricity, provide backup power, or support ESG goals will require different structures.

Second, load data. Time-based load profiles, operating schedules, holidays, and production expansion plans determine the self-consumption ratio and actual surplus electricity volume.

Third, legal and grid connection conditions. Businesses need to determine the electricity buyer, voltage level, electricity retailer, grid hosting capacity, licensing requirements, and metering arrangement.

Fourth, financial performance. The financial model should clearly separate the value of self-consumed electricity, revenue from surplus electricity sales, and benefits from BESS. Maximum possible surplus electricity revenue should not be included in the base case unless grid connection and electricity purchase capability have been confirmed.

365 Energy Perspective

Decree 243/2026/ND-CP expands the options available to businesses seeking access to renewable electricity, but it does not create a single model suitable for every factory.

Businesses with stable daytime loads may prioritize self-consumed rooftop solar. Factories with significant surplus electricity on weekends should further evaluate surplus electricity sales or energy storage. Large electricity users with long-term renewable energy targets may explore DPPA through either a private connection grid or the national grid.

365 Energy recommends that businesses conduct load analysis, generation simulation, grid connection assessment, legal mechanism review, and multiple financial scenario analyses in parallel before making an investment decision.

Selecting the right model from the beginning can reduce the risk of oversizing, curtailment, additional procedures, or unsupported expectations regarding surplus electricity revenue.

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This article is intended for general informational purposes based on the regulations available at the time of publication. It does not replace legal advice or official conclusions issued by competent authorities for any specific project.

Legal source: Decree No. 243/2026/ND-CP, issued and effective from June 26, 2026.

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