South Korea will encourage solar panel rentals

Expects rise in household demand for solar power.

South Korea will promote the solar panel rental business as part of a national effort to boost demand for solar power. Korea produced only about 1.8% of its total power generation from renewable energy sources in 2012.

Song Yoo-jong, director general of energy and resources policy at the Ministry of Trade, Industry and Energy, said the high cost of installing solar panels and to maintain facilities has kept households from turning to solar power.

“The government expects the leasing system to solve the cost issue and create demand for solar power, in particular, among households.”

A household will have to spend some US$4,500 to install a solar panel that can generate 3 kilowatts.

With a rental system, registered rental companies will install and maintain solar panels for home or building owners for a monthly rental fee. When the rental period ends, homeowners can extend their lease, buy the system or have it removed.

The ministry expected homeowners using rented solar panels can slash their electricity bills by some 20% even after paying the rental fee.