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Amidst growing global energy insecurity and the pressing demand for rapid decarbonisation, household solar installations offer an immediate, tangible path to lower living costs and accelerate the energy transition. While the national renewable energy roadmap targets 100GW of installed capacity by 2030, which requires adding 66GW to the current 34GW baseline, domestic policies have historically prioritised large-scale utility developments and industrial complexes, leaving decentralised household potential largely underutilised. In this issue brief, we assess how a coordinated strategy for residential solar can unlock this latent potential, drawing on the country's vast rooftop potential of 35.1GW and balcony capacity of 0.78GW. By analysing data from the 2024 Census, which lists 19.87 million housing units, and accounting for a homeownership rate of 57.4%, our modelling indicates that household solar can be scaled rapidly. Depending on the adoption scenarios, our analysis suggests that between 2.98 million and 5.45 million households could install solar systems, adding 2.3GW to 4.5GW of new capacity and avoiding 1.35 million to 2.65 million tonnes of carbon dioxide equivalent annually.

To design a scalable domestic framework, we analyse the policy packages of leading nations. In Germany, solar capacity grew rapidly following the introduction of its national photovoltaic strategy and the "Solarpaket 1" reforms, which eliminated bureaucratic hurdles by simplifying the Market Master Data Register and raising balcony solar output limits to 800W. The German government also introduced a 0% value-added tax for residential solar systems under 30kW and enhanced tenant installation rights, helping the country surpass 1 million active balcony solar systems by late 2025. Similarly, Australia has achieved a residential solar penetration rate of over one third of households through its Small-scale Renewable Energy Scheme, which lowers upfront purchasing costs by approximately 30%. Australia has also combined direct subsidies with low-interest loans financed by its Clean Energy Finance Corporation, whilst expanding shared communal solar bank programmes for multi-family apartments and funding community batteries to manage grid integration.

The findings point to the necessity of overcoming structural barriers in Korea through four strategic pillars. First, the financial support system must transition from its current high-subsidy reliance to a combined model of tapered subsidies and low-interest loans. Second, we propose the creation of an integrated, one-stop digital platform to streamline the installation process, linking households with local energy cooperatives to manage ongoing maintenance. Third, policies must target renters and shared residential spaces by piloting balcony solar leasing schemes and providing low-interest or interest-free cooperative financing for apartment rooftop systems. Lastly, incorporating household solar and residential energy storage systems into the national grid database is essential to ensure that unmetered decentralised generation is fully integrated into national energy planning. By transforming passive energy users into active prosumers, this approach will build a resilient, socially inclusive foundation for carbon neutrality.

Author

Miyoung YEO | Local Transformation Team | myyeo@igt.or.kr