2016 Plan to Supply Mini PV Generators

January 2016

Climate and Environment Headquarters (Green Energy Division) 2016 Plan for Supply of Mini PV Generators

With the increase of mini PV generators, the Seoul Metropolitan Government (SMG) aims to evaluate the 2015 initiative and improve installation standards to provide safer mini PV generators with greater stability in 2016.

Ⅰ Evaluation of the Initiative in 2015

 Overview ○ Support target: buildings where installation of mini PV generators is possible ○ Cost: KRW 2.73 billion (82 percent of the budgeted KRW 3.2 billion) ○ Performance (Unit: 1 site)

Total Balcony House Building Other

5,327㎾ 902㎾ 3,675㎾ 427㎾ 323㎾ (5,617) (3,258) (1,223) (5) (1,131)

 Major achievements ○ Established the basis to achieve 10MW (40,000 PV generators) by 2018 through the distribution of various mini PV generators - Achieved 85.6 percent of the goal with an accumulated installation capacity of 8.56 MW (8,297 mini PV generators) between 2014 and 2015. ○ Expanded the first citizen-led energy production model in Korea to five metropolitan cities - 200-watt personal power plants to 3 kW and larger power plants participated in various ways.

▸ 5 metropolitan cities: Busan, Incheon, Daegu, Ulsan, and Gwangju

○ Expanded the standard for installation support to all installable buildings - Increased by 60 percent, from 3.2 MW (2,680 sites) in 2014 to 5.3 MW (5,617 sites) in 2015 - The largest number of communal generators installed in apartment complexes (5 in Seoul, 2 in Ansan, and 1 in Changwon)

▸ 5 apartment complexes: Hyundai (Dongjak District), Gangnam Dessian and Seogwang (Gangnam District), Geoyeo Complex 1 (Songpa District), and Shinil Happy Tree (Seodaemun District) ○ Linked to the energy welfare initiative and increased public participation through online and face-to-face meetings - Supported the installation of mini generators for those with little access to energy (544 households), vitalized two-way communication through social media Ⅱ 2016 Initiative Overview

Direction of Promotion

Continuously expanding installation of mini PV generators - Adjust the amount of funding in line with the decreased cost of solar PV generators (maintain a 50 percent support rate)

Promotion of supply that is more convenient and safer - Change the categorization of generators by type and capacity to increase identifiability - Establish an after-sales service system at participating companies in case suppliers go out of business

Increase the number of solar PV generators to households without access to energy

 Goal: Supply 3.3 MW by 2016  Basis ○ SMG Energy Ordinance, Article 25 (Administration and Tax and Finance Measures, etc.) ○ Articles 5 and 6 of the Ordinance on Installation and Operation of a Climate Change Fund - Funding possible for projects that aim to encourage the development, use, and supply of new and renewable energy  Funding targets: People who wish to install mini solar PV generators in buildings located in Seoul  Funding standard: varies by capacity (KRW 500 to KRW 1,500 per watt)

 Procedure

Announcement of Applications for Notification sent search for Applications Submission of subsidy after to selected suppliers (applicant → applications installation ⇨ suppliers ⇨ ⇨ ⇨ (suppliers → suppliers) (suppliers→district) (suppliers → (Seoul) Seoul) district)

Anytime Anytime By November 30, By December 7, (for housing-type (housing-type, Anytime 2016 2016 January 29, 2016) February 2016)

 Budget: KRW 3 billion (Climate Change Fund)

Ⅳ Detailed Plans  Adjust subsidy support per unit ○ Background - The unit price for installation of solar PV generators has decreased by 10 to 20 percent

▸ KRW 2.5 million to KRW 3 million/kW (2014.) → KRW 1.8 million to KRW 2.5 million/kW (2015)

- Additional subsidy provided to 10 gu-districts, including Nowon and Guro ○ Adjust subsidy support per unit (maintain at 50 percent of installation cost) - Adjust funding per unit in line with the decrease in cost for installation of solar PV generators

▸ Balcony generators: 7.7 percent (KRW 30,000) decrease from 2015 for the most-used 260 watt generators

▸ House and Building PVs: adjust the level of subsidy provided for installation of house generators (12.5%, 16.7% ↓) (Unit: KRW 1/watt)

Type of Generator Balcony House Building Less than 200W - 500W - 1kW - Capacity Over 3kW 200W 500W 1kW 3kW

2015 1,650 1,000 800 800 600 Subsidy 2016 1,500 1,000 500 700 500

< 2016 Standards for Support >

∘ Balcony generators: electrical outlet-connected products with a capacity between 200 W and 1 kW

500W - Category 200W or less 200W - 500W 1kW Subsidy KRW 1,500/W KRW 1,000/W KRW 500/W

- KRW 300,000 subsidy for 1 module product (250W); then KRW 1,000 for every watt over 250W - Additional incentive provided for joint installations (from 2014)

▸ KRW 50,000 for buildings with 10-19 households, additional KRW 100,000 for buildings with 20 or more households (on demand) ∘ House generators: meter connection product with a capacity between 1kW and 3kW, KRW 700/W

- Targets: households with an average monthly electricity usage of less than 500kWh

∘ Building generators: PV generation facility with a capacity of over 3kW, KRW 500/W

- When installing in public areas within an apartment complex in connection with the SMG’s rental project, and in apartment complexes with an average monthly household electricity usage is less than 400 kWh

※ Additional volume (kW) available for supply after price adjustment

Additional supply Type of Generator Before price adjustment After price adjustment volume

All 2,974 3,373 409

Balcony 973 1,024 61

House 901 1,029 128

Building 1,100 1,320 220

 Scope of project and diversification of installation method ○ Expand eligibility to include all types of buildings where PVs are installable - Expand project scope to provide support for the installation of personal mini PV generators ○ Change product design for easier distinction by type and capacity - electrical outlet connection generators → balcony generators, meter connection generators → house generators, joint electricity generators → building generators - Diversify products by capacity and installation site to provide a wide selection

Type of Balcony House Building Generator Supported 200W to 1kW over 1kW - 3kW Over 3kW capacity Electrical outlet Type Meter connection Meter connection connection

Installation Railing-mounted House or building rooftop Building rooftop; Any public space within apartment complexes Fixed (anchor bolted) where PV generators are Portable (console) installable

 Increase number of suppliers and improve safety ○ Establish construction standards to properly secure balcony mini generators - Propose items for inspection and structural stability testing for cradle construction

▸ Establish and implement measures to prevent falls, join railing parts for reinforcement, review inspection items by year of construction, etc.

▸ Conduct structural stability testing: wind pressure test by wind direction angle

※ Reflect the results of the project to lay the foundation for performance and stability assessments of mini solar PV generators - Mandate attachment of stickers that specify installer and contact information for technical support ○ Promote vitalization of the solar PV generator project - Strengthen the eligibility criteria for suppliers to participate in the project, and recruit suppliers around the clock

< Eligibility >

∘ Balcony generators: companies located in Seoul (headquarters or branches) that can supply

products that meet construction standards ∙ Companies selected as participating suppliers for the SMG’s new and renewable energy (solar energy) house support program in 2016 ∙ Solar power-related cooperatives with at least 20 members ∙ Companies able to install PVs and provide follow-up management

∘ House generators

∙Companies selected as participating suppliers for the SMG’s new and renewable energy (solar energy) house support program in 2016; located in Seoul (headquarters or branches); able to provide five-year product warranty; and can prove possession of performance guarantee insurance policy ∘ Building generators

∙ Companies selected as participating suppliers for the SMG’s new and renewable energy (solar energy) house support program in 2016; ∙ Companies located in Seoul (headquarters or branches) that can supply and install PVs ∙ Apartment complexes with public areas within: companies selected as government rental businesses in 2016

※ Rental businesses must meet SMG standards and criteria throughout the project process.

- Limit eligibility of solar power-related cooperatives to those with at least 20 members (to help develop these cooperatives) - Exclude companies with semi-annual sales of fewer than 50 balcony mini PV generators from the project in the future ○ Resolve inconveniences through systematic follow-up management - Strengthen safety by allowing suppliers to handle everything from installation to follow-up management

▸ Register “My solar facility” on Seoul’s Solar Map (http://solarmap.seoul.go.kr)

- Designate companies to handle follow-up management in the event suppliers go out of business

▸ These alternate follow-up management companies to be other selected suppliers (continue after supplier selection)

 Expand the mini solar PV generator donation project to provide energy welfare ○ Solar PV businesses, SH Corporation, and others to participate and provide support with installation for residents of rental apartments and welfare facilities ○ Provide 1 module only to help those facing energy poverty reduce their electricity bills - Provide 1 module only (250W) when installing for households in public rental apartments with a floor area of 39 m2 or less

 Increase promotion of solar energy with a focus on energy production ○ Increase the number of those who produce and consume energy (prosumers) - vitalize online and face-to-face meetings and groups for citizen-led solar PV installation - identify cases of energy reduction by monitoring the use of mini solar PV generators ○ Raise awareness of eco-friendly solar power, publish and distribute a Seoul solar photo book - create a book of solar power-related photographs taken by drones and selected through environmental photography competitions, etc. ○ Increase promotion of solar PV installation through information sessions for residents of apartment complexes and promotional booths - utilize local events and markets to facilitate districts, suppliers, and energy designers to reach out to the public - encourage solar PV companies to sell retail products in large distributors, such as Hi-Mart

Ⅴ Schedule

○ Announcement of Seoul’s 2016 solar PV generator funding project: January 2016 ○ Submission of applications and selection of participating suppliers: January 2016 on ○ Promotion of public participation: January – December 2016 ○ Applications from the public to receive solar generators and have them installed: January – November 2016 ○ Application for funding: until December 7, 2016