Gyeonggi Province will support 80% of the installation costs for village-shared solar power plants to provide energy opportunity income.
Gyeonggi Province announced on the 19th that it will promote the ‘2024 Energy Opportunity Income Village Creation Project,’ which provides monthly electricity sales revenue from solar power plants to residents, and will accept applications from interested villages in the province until the 29th of next month.
The support target is village communities consisting of 10 or more households within the same city or county that install commercial solar power generators (total facility capacity of 100kW or more but less than 1MW) on private or public land.
Gyeonggi Province will invest 6.7 billion KRW in the project this year. The installation cost will be covered 30% by Gyeonggi Province, 50% by the city or county, and the remaining 20% will be self-funded.
The capacity of the solar power generation facility is 10 to 15kW per household. Assuming 10kW, the self-funded amount will be only 4.14 million KRW out of the total installation cost of 20.7 million KRW.
After deducting rent and management costs from the revenue generated over 20 years (the typical lifespan of a solar power plant) from the sale of Renewable Energy Certificates (REC) and the electricity price (SMP), an annual return of approximately 25% in opportunity income is expected.
Kim Yeon-ji, Director of the Energy Industry Division of Gyeonggi Province, stated, "Gyeonggi Province will actively support village communities that take the lead in the energy transition process in response to the climate crisis to earn opportunity income."
Meanwhile, last year, five villages in four cities and counties within the province participated in the Energy Opportunity Income Village Creation Project and will start receiving opportunity income from the second half of this year.
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