It will provide subsidies to small scale solar photovoltaic power plants with capacity of less than 50kW for 5 years.
The Seoul City government said it will provide subsidies to small scale solar photovoltaic power generation plants with capacity of less than 50kW for 5 years after operation.
As part of the ‘Building Seoul as a Sunlight City’ policy, the Seoul City authority will improve conditions of supporting solar photovoltaic power facilities, which have been hurdles in expanding such facilities. Expansion of solar photovoltaic power facilities in the city has been hindered due to shorter sunshine duration than other regions, higher construction costs and relatively higher building rental fees.
As the policy of supporting solar photovoltaic power generation was changed in 2012 from the feed-in tariff (FIT) to the renewable portfolio standard (RPS), business condition of small capacity solar photovoltaic power companies with weaker competitiveness was further aggravated. The RPS calls for competition between power generation companies.
In order to ease problems of small capacity solar photovoltaic power plants and encourage installation of such facilities in the city, the Seoul City government decided to support subsidies to such facilities with capacity smaller than 50kW.
Under the new policy, any small capacity solar photovoltaic power companies eligible for the RPS, which are generating power for sale rather than self-consumption, can apply for subsidies.
Subsidies will be paid for 5 years once a year based on amount of generated power, and the power sold to Korea Electric Power Corporation (KEPCO) will be paid by 50 won per 1kWh.
And subsidies will be paid in the following year in a lump sum based on the amount of power generated during the previous year. Amount of subsidies may vary depending on the amount of generated power, and a 50kW solar photovoltaic power plant is expected to receive around 3 million won a year.
Solar photovoltaic power plants that started commercial operation before December 31, 2012 are required to file applications for subsidies by September 2, 2013, and those that began commercial operation after January 1, 2013, or those that are in preparation for license, may file applications by the end of this year, after submitting applications for license.
In all these cases, solar photovoltaic power plants should have started commercial operation before June 30, 2014 in order to be selected as subsidy beneficiaries, and applications will be received in the order of arrival in case capacity of applied power exceeds 10MW in accumulation.
Companies can submit applications to the Seoul City’s Green Industry Support Center in Guro-gu. In order to identify representatives of companies, applications are required to be submitted in person by representatives or agents who carry a letter of attorney.
Documents for application include an application for approving subsidy, consent for providing information and consigning its use, and a letter of attorney in case of submitting by an agent. Companies that apply to receive subsidies in this year for power generated in 2012 are required to submit additional documents, such as receipts for power sold to KEPCO.
Director Gwon Min of Green Energy Division at Seoul City government said, “The City government adopted the support policy because small scale solar photovoltaic power plants run by cooperatives of citizens are suffering from financial difficulties due to adverse geographical conditions and uphill competition with large capacity power plants. We hope the new policy will encourage larger number of citizens to install small capacity solar photovoltaic power facilities in the city.”
Application forms are available in the announcement page on the website of Seoul City (www.seoul.go.kr), and companies may inquire the Seoul City’s Green Industry Support Center (02-866-5272) for further details.
Source : todayenergy