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A financial feasibility study of the Mini-Solar Penal Subsidy Program in Seoul

Sungchan Yeum 1 Eungkyoon Lee 1

1고려대학교

Accredited

ABSTRACT

A major barrier to the spread and vitalization of renewable energy lies in its economic infeasibility. And yet, there is a disparity in estimating the economic feasibility between supply and demand sides. Taking this into account, we calculate an appropriate level of mini-solar panel subsidies provided by the Seoul metropolitan government. More pointedly, this research investigates the receptivity and social equity of the subsidy program based on the analysis of the program’s financial feasibility. The results show that the subsidies can have anticipated effects for the heavy electricity consumption group but not for the low electricity consumption group. Specifically, estimated pay-back periods for groups of 401kWh ~ 500kWh (per month) users, 201 kWh ~ 400kWh users and 101kWh ~ 200kWh were approximately 5years, 8 ~ 9 years and 12 years, respectively. This implies that differential scales of the subsidies can better contribute to reducing regressive difference between the groups and meeting the goal of social equity in regards to energy justice.

Citation status

* References for papers published after 2022 are currently being built.