S Korea to introduce solar leasing to boost demand

Aug 26, 2013 - South Korea’s Ministry of Trade, Industry & Energy (MOTIE) today unveiled plans to introduce the solar leasing model in a bid to promote residential solar installations and the use of clean electricity.

In September the government will choose the companies that will take part in the initiative. Under the plan, these firms will be involved in solar installations and maintenance for households, while the homeowners will only need to make monthly payments for the solar power. Kang Hyuck-gi, head of renewable energy at MOTIE, told The Korea Times that for a household that consumes 550 kWh per month annual savings from a solar system will be over 20%.

Income for the solar installers will come from the rental fees and from renewable energy points (REP) issued by the government for the produced power. A system to regulate the trading of these REPs is yet to take off. The REP buyers will be power producers that are required to meet a certain renewable energy target.

The solar leasing scheme will start working in the fourth quarter of 2013 as a test period. The government will then analyse the results and make decisions for 2014.

In 2012 only 1.8% of South Korea’s energy came from renewables. Power plant operators in the country need to source from renewables 10% of their power after 2022, compared to 2.5% in 2013.

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