Vietnamese businesses have two main routes to green electricity: investing in rooftop solar to generate and consume their own power, or buying renewable electricity directly (DPPA) from generators under Decree 80/2024/ND-CP on direct power purchase. Both help reduce Scope 2 emissions — the indicator international customers usually ask about first.
Key takeaways
- Rooftop solar: suits factories with large roofs and daytime electricity consumption.
- DPPA: suits large electricity consumers that want a high share of renewable power beyond what their roofs can provide.
- Both can be combined with energy efficiency to optimise costs and emissions.
Comparing the two options
| Criterion | Rooftop solar | DPPA |
|---|---|---|
| Investment | Self-funded or installed by a third party under a lease | No need to invest in a power plant |
| Scale | Limited by roof area and structure | Can meet a large share of demand |
| Conditions | Comply with regulations on self-generated, self-consumed rooftop solar and fire safety | Meet the conditions for large electricity consumers under Decree 80/2024 |
| Proof of green electricity | Self-generation output data | Contract and renewable electricity output data |
What to check before deciding
- Hourly load profile: solar generates the most during the day.
- Roof structure and lifespan, and fire prevention and fighting requirements.
- Production expansion plans and future electricity demand.
- Customers' specific requirements on the share of renewable electricity and the types of evidence they accept.
Start with energy efficiency
Before investing in green electricity, cut waste with 7 energy-saving solutions: every kWh you do not need to use is the cheapest and cleanest kWh.
Frequently asked questions
What is a DPPA?
A DPPA (Direct Power Purchase Agreement) is a mechanism for buying and selling electricity directly between a renewable energy generator and a large electricity consumer, governed by Decree 80/2024/ND-CP.
Can surplus rooftop solar power be sold to the grid?
Businesses must comply with current regulations on self-generated, self-consumed rooftop solar, under which exporting surplus output to the grid is limited case by case; check the latest legislation before investing.
Does green electricity help a business achieve a better ESG rating?
An evidenced share of renewable energy and a downward trend in Scope 2 emissions count in a company's favour in the Environmental pillar assessment.
VietESG — Independent ESG rating organisation. Ratings based on disclosed data, supporting evidence and a public methodology aligned with GRI and the SDGs.
