H. Yoo
Research expert covering South Korea
Solar energy industry in South Korea - statistics & facts
South Korea has actively promoted the use of renewable energy sources in recent years to increase its share in the country's energy mix. This and the warming temperatures brought on by climate change have created an opportune moment for the country's solar power industry. South Korea's limited land area has encouraged the development and export of advanced solar panels that are space-efficient, making it home to strong contenders in the global solar panel market, such as Hanwha Solutions and OCI.
Trade in the South Korean solar power industry
Exports of photovoltaic (PV) cells and modules by the South Korean solar power industry reached more than 1.5 million dollars in 2022. Exports have risen from the previous year, but neighboring superpowers, such as China, stand as a challenge for trade and price competitiveness in the near future. In contrast, imports of PV cells and modules have fallen since 2021. Support for the domestic solar energy market, such as the revitalization of the RE100 market and the potential full implementation of the renewable energy bidding system, stand as positive influences for growing South Korea's domestic PV market.Future of solar energy in South Korea
The South Korean government introduced a ceiling on the system marginal price (SMP) in late 2022 to limit the selling price of electricity in the market and to help households in the face of rising global energy prices. The increase in prices has created greater interest in private solar panel installations, which the government has decided to subsidize. However, investment in solar energy is not without its challenges. There remain concerns of environmental damage from the growing waste from panels and modules as well as conflicting government policy regarding solar power installations. Despite this, solar energy will likely continue to be a driving factor as South Korea strives toward a more sustainable energy system.
