Solar Energy - South Korea

The Solar Energy market in South Korea is witnessing considerable growth, influenced by factors such as regulatory challenges, high installation costs, and competition from other renewable sources. However, increasing government initiatives aim to enhance solar adoption and sustainability.

Customer preferences: Consumers in South Korea are progressively prioritizing sustainable living, which is reshaping their preferences towards solar energy solutions. This shift is particularly evident among younger generations who value eco-friendly practices and seek innovative technologies for energy efficiency. Additionally, urban dwellers increasingly favor solar installations as a means to reduce utility costs and carbon footprints. As awareness of climate change grows, there’s a rising demand for community-based solar initiatives, reflecting a collective desire for renewable energy engagement and environmental stewardship.

Trends in the market: In South Korea, the solar energy market is experiencing a surge in rooftop solar installations as consumers increasingly seek to harness renewable energy for their homes. The trend is particularly strong among millennial and Gen Z homeowners, who prioritize sustainability and energy independence. Furthermore, the government’s supportive policies and financial incentives are making solar solutions more accessible. As urban areas adopt community solar projects, collaboration among residents fosters a sense of shared responsibility. This evolving landscape signifies a shift towards decentralized energy production, compelling industry stakeholders to adapt their strategies and invest in innovative technologies to meet the growing demand for sustainable energy solutions.

Local special circumstances: In South Korea, the solar energy market is shaped by a combination of geographical advantages, cultural values, and supportive regulatory frameworks. The country’s high population density and limited land availability make rooftop solar installations particularly appealing, allowing homeowners to maximize energy generation on existing structures. Culturally, there is a strong emphasis on environmental stewardship, especially among younger generations, driving demand for sustainable solutions. Additionally, the government’s ambitious renewable energy targets and financial incentives further stimulate market growth, fostering innovation and collaboration among stakeholders in the transition to a greener energy landscape.

Underlying macroeconomic factors: The solar energy market in South Korea is significantly influenced by macroeconomic factors such as national economic stability, government policies, and global energy trends. A robust economy encourages investment in renewable energy technologies, while the government’s fiscal policies, including tax incentives and subsidies for solar projects, enhance market attractiveness. Additionally, global shifts toward decarbonization and energy independence drive local demand for solar solutions, aligning with international climate commitments. Fluctuations in energy prices and technological advancements further impact the competitiveness of solar energy, making it a pivotal component of South Korea’s broader energy strategy.

Data coverage:

The data encompasses B2B enterprises. Figures are based on the value of electricity production in the energy market.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as annual reports of the market-leading companies and industry associations, third-party studies and reports, national statistical offices, international institutions, and the experience of our analysts.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting electricity generation due to the non-linear growth of this market, especially because of the direct impact of climate change on the market.

Additional notes:

The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.