Markets
South Korea to Add 3.5 GW Solar in 2026
Quick Take: South Korea will install about 3.5 GW of new solar capacity in 2026, topping the 3.1 GW added in 2025.
The Export‑Import Bank of Korea (Korea Eximbank) confirmed the forecast in its latest market report, noting that the country is on track to exceed last year’s installations and push the renewable‑energy curve steeper.
Solar Installation Forecast – 3.5 GW in 2026
South Korea is slated to add 3.5 GW of solar power this year, according to the Korea Eximbank report cited by pv‑magazine. The figure represents a notable increase over the 3.1 GW installed in 2025.
Distributed‑Grid Programme and Microgrids
The Korean Ministry of Trade, Industry and Energy is rolling out a next‑generation distributed‑grid programme aimed at integrating more distributed energy resources (DERs). The EU Business Hub, an EU‑funded SME support programme, explained that the plan includes microgrid pilots and that operators will be selected in Q2 2026 after a Q1 call for proposals. This effort is meant to smooth the connection of rooftop PV, agrivoltaics and other small‑scale generators to the national grid.
Sunshine Income Villages – Turning Idle Land into Solar Hubs
A flagship policy, the Sunshine Income Villages scheme, incentivises the use of idle land, farmland and reservoirs for solar farms. Local residents form cooperatives that share both the electricity and the profits. The Ministry of Interior and Safety aims to identify 700 villages this year, scaling up to 2,500 by 2030. The first villages were selected in August, marking the start of a community‑driven rollout.
Energy‑Storage on Distribution Lines – 128 MW/640 MWh in the First Deal
In July 2024, South Korea signed its inaugural contracts to install energy‑storage systems directly on distribution lines. Nine companies will deliver 128 MW of power capacity and 640 MWh of storage across 32 lines that previously faced interconnection bottlenecks. The government’s target is 700 MW of line‑side storage by 2030, a move expected to unlock an extra 1 GW of renewable interconnection capacity.
Renewable‑Energy Targets and the 400 MW Mega‑Project
South Korea’s First Renewable Energy Basic Plan (published early 2024) sets a 100 GW renewable‑energy goal for 2030, up from roughly 37 GW at the time of the plan’s release. Of the 56.2 GW of new solar capacity envisioned, 12 GW will come from large, grid‑connected complexes and 44.2 GW from designated sites such as industrial rooftops, agrivoltaics, floating PV, transport corridors and public buildings. In August 2024, construction began on the country’s largest solar complex – a 400 MW farm spread over 4.79 million m² of idle land.
What It Means for Israel
At Israel’s typical residential yield of 1,700 kWh / kWp / year, the 3.5 GW of new Korean solar capacity would generate roughly 5.9 TWh annually. That amount could power a large number of Israeli homes. Valued at the residential tariff of ₪0.48 /kWh, the electricity would be worth several billion shekels per year for Korean producers – a scale that dwarfs Israel’s current solar market (≈ 3 GW installed). For Israeli investors, the Korean push underscores the commercial upside of community‑owned solar models like the Sunshine Income Villages, which could inspire similar cooperative schemes under Israel’s municipal feed‑in tariff of ₪0.54 /kWh.
For a quick back‑of‑the‑envelope ROI, a typical 10 kWp home system in central Israel yields ≈ 17,000 kWh/year, worth ≈ ₪8,160 annually at the residential rate, and pays back in ≈ 3.9 years on a ₪31,500 install cost – a benchmark that Korean developers will likely use when pricing their own residential offerings.
Outlook: From Villages to Grid‑Scale
South Korea’s blend of community‑solar villages, line‑side storage and a fast‑track distributed‑grid programme positions it to meet the 100 GW renewable target well before 2030. If the 700 MW storage goal is hit, the additional 1 GW of interconnection capacity could accelerate the rollout of the 44.2 GW of designated‑site solar slated in the plan. Observers in Israel and elsewhere will be watching how the Korean model balances domestic supply‑chain support with export‑oriented growth, especially as the EU Business Hub pushes for preferential support of locally‑made modules.
Stay tuned for updates on the microgrid pilots and the next round of Sunshine Income Villages selections – the Korean experience may soon become a template for other nations seeking to democratise solar power.
FAQ
How much solar capacity will South Korea add in 2026?
South Korea is forecast to install about 3.5 GW of new solar capacity in 2026.
What is the Sunshine Income Villages scheme?
It is a government program that places solar farms on idle land, farmland or reservoirs, letting local residents form cooperatives that share the electricity and profits.
How much energy‑storage will be built on distribution lines this year?
South Korea signed contracts for 128 MW of power capacity and 640 MWh of storage across 32 distribution lines in July 2024.
What renewable‑energy target has South Korea set for 2030?
The country aims for 100 GW of total renewable capacity by the end of the decade, including about 56 GW of new solar.
How does the Korean solar rollout compare to Israel’s market size?
Korea’s 3.5 GW addition is roughly ten times the total solar capacity currently installed in Israel (≈ 3 GW).
Will the new Korean projects help reduce CO₂ emissions?
Yes – each kWh generated avoids about 0.5 kg of CO₂, so the projected 5.95 TWh from 2026’s additions would cut roughly 3 million tonnes of CO₂ annually.
Share this post
More from Markets
6
US Tariffs Push Solar Module Prices Up
U.S. Section 232 tariffs are expected to modestly raise solar module prices, adding a small extra cost to Israeli rooftop systems and slightly extending payback times.
Tongwei Clears Antitrust Hurdle for Lihao Deal
Tongwei has received antitrust clearance to acquire Qinghai Lihao, a fast‑growing polysilicon producer, paving the way for expanded low‑carbon silicon capacity that could help lower solar‑module prices worldwide.
US Solar Adds 19.2 GW in H1 2026
The United States installed 19.2 GW of solar PV in the first half of 2026, driven mainly by a 61 % surge in utility‑scale projects, while residential solar slipped and permitting bottlenecks loom.
Chile’s Solar Curtailment Hits Record, Storage Ramps Up
Chile curtailed a record 2,680 GWh of solar and wind power in the first seven months of 2026, while battery storage capacity surged to over 2.6 GW, highlighting a growing flexibility gap.
Hormuz Crisis Sends Oil Prices 20% Higher
The Hormuz crisis has cut about 9 million barrels per day of oil, pushing Brent up 20 % and gas prices 40‑60 % higher, while making rooftop solar in Israel financially more attractive than ever.
Africa’s Solar Manufacturing Boom Hits 3.5 GW
Africa will boost solar panel manufacturing to about 3.5 GW in 2026, driven by new factories in Egypt and Tanzania that mainly target the U.S. market.