Life-cycle economic assessment for establishing the optimal government solar subsidy program in South Korea

Kwangbok Jeong, Jongbaek An, Taehoon Hong, Jaewook Lee, Yongwook Jeong

Research output: Contribution to journalArticlepeer-review


Since the current government solar subsidy does not consider the economic effect that varies depending on the operating entity of the government solar subsidy program, the implementation of photovoltaic (PV) in multi-family housing complexes (MFHCs) has limitations. Thus, this study aimed to establish the optimal government solar subsidy program for promoting the installation of PV in MFHCs. Toward this end, this study established nine scenarios considering government solar subsidy programs and MAECH and conducted a life-cycle economic assessment. When installing the optimal power capacity of PV in MFHC, the range of the net present value in 25 years increase from US$8,873.54 to US$588,626.83 when the MAECH increased from 200 to 600kWh. When installing the maximum power capacity of the PV in MFHC, the shorter the target breakeven point is, the greater the government solar subsidy the government must support for the MFHC becomes. Government solar subsidies of up to US$966.46/kW and US$938.99/kW, respectively, are required to meet the economic profitability of the PV within 4 and 5 years of breakeven point. The results of this study make it possible for policymakers to establish a government solar subsidy scheme and for residents to determine the optimal government solar subsidy program.

Original languageEnglish
Article number112342
JournalEnergy and Buildings
Publication statusPublished - 2022 Oct 1

Bibliographical note

Funding Information:
This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MIST; Ministry of Science and ICT ) ( NRF-2021R1A3B1076769 ).

Publisher Copyright:
© 2022 Elsevier B.V.

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Building and Construction
  • Mechanical Engineering
  • Electrical and Electronic Engineering


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