6 common legal terminology about solar power

Date: 29 July 2021

Writers: Linh Nguyen & Thao Nguyen

Vietnam has recently implemented several policies to promote the development of solar power to ensure electricity supply and energy security. It is essential to learn and comprehend the relevant concepts to implement solar power projects efficiently while also complying with the legislation. Through this article, BLawyers Vietnam will provide a guide to common legal terminology about solar power so that readers can gain a better understanding of this subject.

1. Solar power

Solar power means the electricity produced by photovoltaic panels based on the principle of converting solar energy into electricity. Wp, KWp, MWp are units of measurement of peak solar power achievable from photovoltaic panels.

In which, the photovoltaic panel is a panel made from solar cells, which are an essential component in converting sunlight into electrical energy. Therefore, solar power means electricity generated from solar energy using photovoltaic panels which can convert sunlight energy into electrical energy.

The solar power plant includes all power generation equipment, protection equipment, connection equipment, related ancillary equipment, and land used for solar power constructions.

Good read: Detailed list of incentive policies and registration procedures for the rooftop solar power project’s operation

2. Rooftop solar power system

To be considered as a roof solar power system, a solar power system must meet three conditions:

  1. Installing photovoltaic panels on the rooftop of the construction;
  2. Having a peak capacity of 01 MW; and
  3. Having a direct or indirect power grid connection from a voltage of 35kV or less.

3. Grid-connected solar power project

A grid-connected solar power project means a solar power project which is directly connected to the national grid and does not meet one of the rooftop solar power system conditions.

There are two types of grid-connected solar power projects: floating solar power projects and ground-mounted solar power projects.

4. Floating solar power project

A floating solar energy project means a grid-connected solar power project with photovoltaic panels floating on the water. These photovoltaic panels are on a floating structure to keep them above the water. They are often installed in water bodies such as ponds, lakes, and artificial dams.

5. Ground-mounted solar power project

Ground-mounted solar power project means the remaining grid-connected solar power project, using racks placed on the ground to support photovoltaic panels.

6. Commercial operation date of the grid-connected solar power system

The commercial operation date of the grid-connected solar power system is the date on which the solar power construction is ready to sell electricity to the Electricity Buyer. The condition for that is the solar power project has completed initial tests and the competent authority has granted an electricity license to operate in the field of electricity generation. The Electricity Seller and Electricity Buyer will agree on the meter readings to begin payment on that date.

Good readTemplate of power purchase agreement for roof solar power system pursuant to Vietnamese laws

Apprehending the aforementioned legal terminology will help readers understand solar power more accurately and thoroughly. Thereby, you can ensure legal compliance when executing those projects.

Should you have any questions about the above contents, please revert to BLawyers Vietnam at consult@blawyersvn.com. We are more than happy to hear from you!

Maybe you want to read:

Detailed list of incentive policies and registration procedures for the rooftop solar power project’s operation

Template of power purchase agreement for roof solar power system pursuant to Vietnamese laws

[Updated] 3 Must-have licenses for rooftop solar power projects

Some guidelines on rooftop solar power from Vietnam’s Ministry of Industry and Trade


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