As of the end of 2022, South Korea’s total installed solar power capacity was 20.97 gigawatts (GW).⁵

• The South Korean government has established an ambitious renewable energy goal, aiming to achieve a solar power capacity of 42.7 gigawatts (GW) by 2030.⁶⁷
• This target encompasses both large-scale solar farms and smaller, distributed solar systems nationwide. To reach this objective, an annual growth rate of 6.93% is anticipated between 2024 and 2030 (Compound Annual Growth Rate, CAGR).
• Furthermore, the country’s energy transition plan outlines an even more extensive expansion, projecting solar installations to reach 72 GW by 2038, solidifying South Korea’s commitment to a sustainable energy future.

In South Korea, the levelized cost of electricity (LCOE) differs substantially depending on the generation source. Here’s a breakdown of the average costs for major sources:⁸

• Coal: Approximately $60 per megawatt-hour (MWh)
• Natural Gas (LNG): Around $70 per MWh
• Solar PV: Between $100 and $120 per MWh
• Wind: Approximately $90 per MWh
• Nuclear: Roughly $50 per MWh

Note: These costs are averages and may vary depending on specific circumstances.

Distribution of electricity generation in South Korea is given below.⁹

In South Korea, the average daily availability of electricity from the national grid is nearly 24 hours. South Korea has a highly developed and reliable electricity supply system, ensuring continuous power availability for its residents and industries.

Current Installations¹¹

• Residential sector: Approximately 500,000 homes have installed solar panels, contributing to the country’s renewable energy goals.
• Overall solar PV installations: The total number of solar installations across various sectors has reached 2 million, demonstrating South Korea’s commitment to expanding its solar energy capacity.

Projected Installations¹²

Short-Term Projections

• By 2025, it is expected that the number of residential solar installations could reach approximately 700,000 to 800,000.
• This projection is based on the continuation of current policies and the introduction of new incentives.

Long-Term Projections

• By 2030, South Korea aims to increase its renewable energy share to 20% of the total energy mix.
• This goal suggests that the number of residential solar installations could exceed 1 million, assuming continued government support and technological advancements.

¹³

Installed Solar Farms

• As of 2023, South Korea has approximately 3,400 solar farms installed.
• This figure includes both land-based and floating solar projects.

Projected Solar Farms

South Korea has set ambitious targets to substantially boost its solar energy capacity, with plans to reach approximately 34,000 megawatts (MW) of solar photovoltaic (PV) capacity by 2030. This significant expansion will encompass a diverse range of solar installations, including:

• Small-scale solar systems for residential and commercial use
• Utility-scale solar farms for large-scale energy generation

This strategic expansion aims to meet the country’s increasing demand for renewable energy and drive progress towards achieving its clean energy objectives, ultimately reducing reliance on fossil fuels and mitigating climate change.

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Current Demand

South Korea’s solar market is dominated by grid-connected systems, owing to its well-established electrical grid infrastructure. In contrast, the off-grid solar sector is relatively small, with only a few thousand installations as of 2024, primarily serving rural and remote areas where grid access is limited.

However, the off-grid solar market holds promising potential for growth, driven by:

1. Government initiatives supporting renewable energy adoption
2. Increasing demand for sustainable energy solutions in remote areas

In 2023, South Korea’s renewable energy sector experienced a notable 10% growth in solar PV installations, encompassing both grid-connected and off-grid systems. This upward trend is expected to continue, with off-grid solar playing a vital role in expanding energy access and reducing carbon footprint in remote areas.

Projected Demand

The off-grid solar market in South Korea is projected to grow steadily over the next decade. While specific numbers are not available, the overall demand for off-grid solar solutions is expected to increase as part of South Korea’s broader push towards renewable energy.

Current Demand¹⁵

Residential On-Grid Solar Market

South Korea’s residential on-grid solar market has experienced remarkable growth, fueled by government incentives and declining solar photovoltaic (PV) costs. By the end of 2022, the country had surpassed 1.4 gigawatts (GW) of residential solar installations, demonstrating the success of policies aimed at promoting solar adoption.

Key drivers of this growth include:

• Subsidies: Financial support for households to install solar PV systems
• Tax incentives: Reduced tax liabilities for residents investing in solar energy
• Renewable Energy Certificates (RECs): Tradeable certificates that encourage solar adoption and offset emissions

These initiatives have made solar energy more accessible and affordable for South Korean households, contributing to the country’s transition towards a more sustainable and renewable energy mix.

Commercial and Utility On-Grid Solar Market

• South Korea’s commercial and utility-scale solar markets are thriving, bolstered by supportive policies such as the Renewable Portfolio Standard (RPS). The RPS requires a significant percentage of the country’s electricity supply to come from renewable sources, driving demand for large-scale solar projects.
• Notably, utility-scale installations have become increasingly common, with many projects exceeding hundreds of megawatts in capacity. As of 2022, South Korea’s total installed solar capacity surpassed an impressive 25 gigawatts (GW), with utility-scale installations playing a substantial role in achieving this milestone.

Projected Demand ¹⁶

Residential Market Projections

• By 2030, it is projected that residential solar installations will more than double, potentially reaching over 3 GW as part of South Korea’s efforts to increase renewable energy adoption

Commercial and Utility Market Projections

South Korea’s commercial and utility-scale solar markets are poised for substantial expansion, with forecasts suggesting that total solar capacity will reach 40 gigawatts (GW) by 2030. This growth will be driven by:

• Ongoing investment in large-scale solar projects
• Advancements in solar technology, leading to increased efficiency and reduced costs

Government policies will also play a crucial role in fueling this growth, including:

• New long-term fixed price schemes, providing stability and predictability for investors
• Adjustments to the Renewable Portfolio Standard (RPS) program, enhancing the market’s appeal to investors and developers

These factors will combine to create a favorable environment for solar investment and development, solidifying South Korea’s position as a leading player in the global solar market.

Worker of solar industry earn as follow:¹⁷

• Average annual salary for a Solar Photovoltaic Installer: 19,784.88 USD
• Lowest average salary: 9,673.95 USD
• Highest average salary: 30,931.13 USD

The current population of the Republic of Korea is 51,742,869.¹⁸

Estimate for Factory Rent²¹

The average rent for multi-owned commercial buildings in South Korea varies by province. As of the first quarter of 2023:

• Average rent in South Korea: 19.296 USD per square meter
• Average rent in Seoul: 33.912 USD per square meter
• Average rent in Jeju: 8.64 USD per square meter

Industrial Electricity Rates²²

The electricity price for businesses is USD 0.126 per kWh in South Korea. This includes all components of the electricity bill such as the cost of power, distribution and taxes.

Water Costs²³

• Water rates for industrial use are typically charged per cubic meter (m³).
• Average water rate: 0.53 USD per cubic meter (m³)

Key Components of Administrative Costs

Salaries and Wages:¹⁷

Worker of solar industry earn as follow:

• Average annual salary for a Solar Photovoltaic Installer: 19,784.88 USD
• Lowest average salary: 9,673.95 USD
• Highest average salary: 30,931.13 USD

Office Supplies and Equipment

Costs for office Stationary²⁶

• Minimum price: 2.16 USD
• Maximum price: 21.6 USD
• Professional tools: 36.0 USD (and often exceeding this amount)
• The average import price for stationery is $7,467 per ton

Rent for Office Space²⁴

If the administrative office is separate from the factory, rental costs for the office space;

• Seoul: 16.488 USD per square meter
• Gyeonggi: 9.00 USD per square meter
• Incheon: 6.048 USD per square meter.

Insurance²⁵

• In 2024, the average per capita expenditure on property insurance in South Korea is projected to be approximately US$5.02. This notable figure underscores the growing awareness and importance of property insurance in safeguarding assets among the population.

Here’s a summary of the South Korea renewable energy infrastructure:

Electricity Generation

• South Korea’s current installed capacity is estimated at approximately 104 GW, with a utilization rate close to full capacity due to high demand.
• The country’s energy mix comprises 42.2% nuclear power, 30.7% natural gas, 17.8% coal, 6.7% renewable energy (including hydro, solar, and wind), and 2.6% oil.

Transmission & Distribution

• South Korea’s transmission infrastructure is highly developed, consisting of a national grid system that efficiently distributes electricity across the country.
• The grid operates predominantly at 345 kV and 765 kV levels, with extensive coverage extending to all regions, including remote islands.
• The grid is interconnected through multiple backbone systems, ensuring robustness and reliability.
• Plans include further expansions and upgrades to accommodate increasing energy demands and enhance grid resilience.

Energy Access

• As of 2023, South Korea boasts nearly universal electricity access, with over 99.9% of its population having reliable access to electricity.
• This high level of access is consistent across both urban and rural areas, reflecting the country’s advanced infrastructure and comprehensive electrification efforts.

Energy Exports

• South Korea’s energy exports primarily consist of refined petroleum products and petrochemicals.
• The country is a significant exporter in the region, with key destinations including various countries in Asia and beyond.

South Korea has enacted various legislation relating to renewable energy. This includes the Renewable Energy Act, Carbon Neutrality Act and the GHG Allocation Act. The Renewable Portfolio Standard (RPS) and the Korean Emissions Trading Scheme (K-ETS) instead serve as the two main regulatory frameworks supporting such legislation. The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Environment (MOE) are the governmental authorities responsible for implementing energy related initiatives.¹⁹

The Fifth Basic Plan for Use, Supply and Technology Development of New and Renewable Energy

• The Fifth Basic Plan, introduced in December 2020, outlines the government’s strategy from 2020 to 2034.
• Its primary goal is to increase the share of new and renewable energy in total power generation to 25.8% by 2034. Specifically, 22.2% of this target will come from renewable energy sources, with the remaining 3.6% from new energy sources.
• This plan represents a significant shift away from fossil fuels towards renewable energy, particularly solar and wind power, as part of Korea’s efforts to achieve a decarbonised economy.

RPS Scheme

• Targets power generation companies with over 500 MW capacity.
• A minimum proportion of power must be generated from renewable sources.
• Initially set quotas were 12.5% for 2022, increasing to 25% by 2026.
• In 2023, adjustments reduced the 2023 quota to 13%, with increases to 15% by 2026 and 25% by 2030.

K-ETS

• Addresses greenhouse gas (GHG) emissions.
• Caps emissions for specified sectors and allocates allowances, with at least 10% auctioned.
• Organizations must buy permits to cover emissions or face penalties.
• Phase 4 (2026-2030) is being developed to align with national GHG reduction targets.

Following is the overview of solar energy support in South Korea¹⁰

Capital Subsidy (NRE Loan) Program

• Tackles up-front cost barriers for NRE equipment/facilities.
• KEA evaluates proposals and provides funds to participating financial institutions.
• Participating banks offer up to 90% of the necessary funds at low interest rates.
• Includes grace period options (1-5 years) and amortization options (2-10 years).
• Can finance facilities, production funds, and working capital.
• 2024 budget reduced by 21% compared to 2023.

NRE Loan Program for Residents’ Participation

• Provides low-interest loans to residents in solar power generation.
• Up to 20 billion KRW can be loaned, covering up to 90% of project costs.
• Includes a 20-year grace period.

Green Guarantee Program

• Supports companies with technological capabilities but insufficient credit/collateral.
• Korea Credit Guarantee Fund and Korea Technology Finance Corporation are participating in this program

RPS Program for Power Businesses

• Mandates that electricity utilities source a portion of electricity from renewable energies.
• 25 obligators must supply 13% from NRE sources by 2023.
• Major driver for PV installations, with significant targets surpassed.
• New long-term fixed price RPS scheme (up to 20 years) launched in 2017.
• REC multiplier scheme to enhance local community involvement.
• Grid connection guaranteed up to 1 MW since 2017.

Korean-type Feed in Tariff (FiT)

• Aimed to improve bankability of small-scale PV installations.
• Provided a fixed contract price through bidding for systems less than 100 kW.
• Program ran from 2018-2022 and terminated in July 2023.

NRE Mandatory Use for Public Buildings

• New/renovated public buildings (>1,000 m²) must use >32% energy from renewable sources (in 2023).
• Applies to state administrative bodies, local entities, and state-run institutions.
• Mandate percentage to increase to 30% by 2020 and 40% by 2030.

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Installed Projects

Saemangeum Solar Power Project

• Location: Saemangeum, North Jeolla Province
• Capacity: 2.1 GW (world’s largest floating solar power plant)
• Details: The project includes both floating and land-based solar farms, with a major portion on the Saemangeum Seawall.

Taean Solar Power Plant

• Location: Taean County, South Chungcheong Province
• Capacity: 96 MW
• Details: Operated by Korea East-West Power, it is one of the largest solar farms on the Korean peninsula.

Shinan Solar Power Plant

• Location: Shinan County, South Jeolla Province
• Capacity: 21 MW
• Details: Part of the broader Shinan Renewable Energy Complex, contributing significantly to local renewable energy production.

Jeju Island Solar Projects

• Location: Various sites on Jeju Island
• Capacity: Over 100 MW (combined from multiple smaller projects)
• Details: Jeju Island aims to become carbon-free by 2030, heavily investing in solar and other renewables.

Projected Projects

Gyeonggi Green Energy Solar Project

• Location: Gyeonggi Province
• Capacity: 200 MW
• Details: This upcoming project aims to harness solar energy to supply electricity to thousands of households.

Ulsan Floating Solar Farm

• Location: Ulsan
• Capacity: 1.5 GW
• Details: Planned as a large floating solar power facility, part of the city’s strategy to diversify its energy mix.

South Jeolla Floating Solar Project

• Location: South Jeolla Province
• Capacity: 300 MW
• Details: Another significant floating solar initiative leveraging South Korea’s vast water bodies for solar energy generation.

Here is a summary of notable solar companies with a focus on their activities in South Korea, including their services, major projects, and website details:

1. Hanwha Q CELLS

• Website: Hanwha Q CELLS
• Services: Manufacturing of photovoltaic (PV) solar cells, modules, and providing complete solar power solutions.
• Major Projects in South Korea: Hanwha Q CELLS has a significant presence in South Korea with numerous projects, including large-scale solar power plants. Notable projects include the Saemangeum Solar Power Project and various solar farms throughout the country.

2. OCI Solar Power

• Website: OCI Solar Power
• Services: Development, financing, construction, and operation of utility-scale solar power plants.
• Major Projects in South Korea: OCI has been involved in the Gunsan Solar Power Plant, one of the largest solar power plants in South Korea, and other projects aimed at increasing solar power capacity in the country.

3. KACO New Energy (A Siemens Company)

• Website: KACO New Energy
• Services: Producing solar inverters, energy storage systems, and providing monitoring solutions.
• Major Projects in South Korea: KACO has supplied inverters for various solar power plants in South Korea, contributing to the nation’s renewable energy infrastructure.

4. Shinsung E&G

• Website: Shinsung E&G
• Services: Manufacturing of solar modules, development of solar power systems, and EPC (Engineering, Procurement, and Construction) services.
• Major Projects in South Korea: Shinsung E&G has been involved in several solar farm projects, such as the 100 MW solar power plant in Haenam and other utility-scale installations.

5. Hyundai Energy Solutions

• Website: Hyundai Energy Solutions
• Services: Production of solar modules, development of solar power systems, and providing EPC services.
• Major Projects in South Korea: Hyundai Energy Solutions has developed numerous solar power projects, including the large-scale solar power plant in Seosan, South Chungcheong Province.

6. Doosan Heavy Industries & Construction

• Website: Doosan Heavy Industries & Construction
• Services: Providing EPC services for solar power plants, manufacturing solar panels, and offering integrated solar solutions.
• Major Projects in South Korea: Doosan has been involved in the development of solar power plants in locations such as Jeju Island and other regions, supporting South Korea’s renewable energy goals.

7. OCI Company Ltd.

• Website: OCI
• Services: Manufacturing of polysilicon used in solar panels, developing and operating solar power plants.
• Major Projects in South Korea: OCI has significant investments in solar power projects, including the 100 MW Gunsan solar power plant and other initiatives to increase solar energy capacity in South Korea.