South Korea selects first villages for community solar scheme

The South Korean government has selected the first 86 villages to take part in its Sunshine Income Villages initiative.

First unveiled earlier this year, the scheme aims to install solar power facilities on idle land, farmland and reservoirs, with local residents forming cooperatives to participate in the projects via energy and profit sharing.

The 86 villages were chosen from 129 that applied during the first open call for participants. A further 34 were recommended to reapply during the second call, which wrapped up at the end of July.

According to an update posted by the country’s Ministry of Climate, Energy and Environment (MCEE), nine of the approved villages were assessed as capable of rapid project implementation as they already meet all business requirements, such as established financial plans, secure site selection and the formation of a cooperative.

The remaining 77 selected applicants are referred to as ‘conditionally selected’ as some of the necessary requirements for participation in the scheme, such as financial plans, grid connections and lease negotiations, are yet to be finalized.

MCEE’s update says the government will now “promptly guide the selected villages through follow-up procedures”, including grant permits and providing financial support covering up to 85% of solar installation costs.

South Korea’s Minister of Interior and Safety, Yoon Ho-joong, said he expects the 86 Sunshine Income Villages selected in this first round of applications to “become exemplary cases and serve as a stepping stone for nationwide expansion.”

“As many villages from all over the region have applied for the second round of applications, we will cooperate closely with relevant ministries to do our best to ensure that as many villages as possible are selected and can enjoy the benefits,” he added.

In its second search for participants, the government received 617 village applications from 116 cities and counties across 12 provinces and cities nationwide. Final selection results are expected at the end of September.

The Ministry of Interior and Safety has set a target of identifying 700 solar villages this year, increasing to 2,500 by 2030.

Reports in South Korean media add that the government is currently in discussions to add an energy systems support scheme program to complement the Sunlight Income Villages initiative, particularly in areas with limited grid capacity. 

Last week, a groundbreaking ceremony took place for South Korea’s largest single-site PV complex to date. In July, the country announced its latest solar tender covering 1 GW of new solar capacity.

South Korea’s cumulative solar capacity reached 30,346 MW by the end of 2025, according to figures published by the International Renewable Energy Agency (IRENA), a 3.6 GW increase on data reported at the end of 2024.