President Lee's Sevenfold Solar Village Expansion Sparks Unregulated Growth Fears

The government announced plans to establish over 700 “Sunlight Income Villages” nationwide this year, promoting a “rural basic income” model. As of September last year, the target was only 100 villages, but the goal has been increased sevenfold within eight months.

Despite unresolved risks such as the surge in uncontrolled “ghost solar power” and solar power overproduction, the government appears to be focusing solely on accelerating solar power expansion. Even a progressive private think tank has warned, “This could repeat the mistakes of the 2008 ‘Energy Self-Sufficient Village’ project.”

◇Significantly Raising Target from 100 to 700 Villages

The Ministry of Climate, Energy and Environment held a discussion on Sunlight Income Villages on the 7th at the Han River Flood Control Center in Seocho-gu, Seoul, chaired by Climate Minister Kim Sung-whan. During the event, Minister Kim stated, “We will establish over 700 Sunlight Income Villages by the end of this year.”

A Sunlight Income Village is structured as a cooperative of at least 10 residents who install and operate a solar power plant under 1 megawatt (MW) on idle land within the village, sharing the profits. The government plans to expand this initiative to over 2,500 villages nationwide by 2030, starting with over 700 this year.

As of September last year, just before the ministry’s establishment, the Lee Jae Myung government’s 2026 target was 100 villages. On September 16 last year, during a Cabinet meeting chaired by President Lee, Minister of Agriculture, Food and Rural Affairs Song Mi-ryung announced, “We will start with 10 pilot projects in 2025, expand to 100 villages in 2026, and reach 500 villages in 2023.”

After hearing the report, President Lee asked, “If we put our minds to it, couldn’t we do hundreds?” Then-Environment Minister Kim Sung-whan responded, “We could even do 10,000,” supporting the president. Subsequently, the government’s 2026 target was raised sevenfold to over 700 villages.

◇Addressing ‘Ghost Solar Power’ and Output Control Challenges

Under current law, solar power plants under 1 MW are not required to report their generation to the government. The facilities to be installed in Sunlight Income Villages fall into this category. The government currently manages these non-metered (self-use) solar generators based on estimates.

The issue is that these “ghost solar” generators, reliant on estimates, have already spread nationwide on a significant scale. According to data submitted by the climate ministry to the office of People Power Party Representative Kim Wi-sang, domestic self-use solar capacity grew from 671 MW in 2015 to 4,620 MW in 2024—an approximately sevenfold increase. These facilities generate 5,115 gigawatt-hours (GWh) of electricity, enough to power 1.28 million households (based on a four-person household) for a year.

If the current trend continues, non-metered solar generation could reach 150,000 GWh by 2040—equivalent to the annual output of 19 nuclear reactors. Combined with the rapid expansion of Sunlight Income Villages, an enormous volume of solar facilities will generate electricity outside the government’s control system.

Even if Sunlight Income Villages pursue local production and consumption, unmanaged facilities will complicate grid management. Sudden weather changes causing simultaneous solar power drops would instantly shift demand to the KEPCO grid.

Another problem is the rise in “output control” measures—forced shutdowns to balance supply and demand. The number of output control instances tripled from 27 in 2024 to 82 last year.

◇Consultant Qualifications Granted After Two Days of Training

Concerns also arise about the Sunlight Income Village policy itself. According to a recent report by the progressive Green Transition Research Institute, 320 of 32,221 cooperatives nationwide include “sunlight” in their names, and 38.4% (123) of these were registered this year (as of April 8).

The institute noted, “Considering that establishing a cooperative typically requires months of consensus-building, these registrations are likely rushed efforts by external businesses to meet support requirements, rather than voluntary community initiatives. If hastily formed cooperatives lead projects, they may conflict with most villagers.”

The institute also criticized the consultant training program for Sunlight Income Villages. Consultants responsible for these projects receive qualifications after just two days of training across six regional centers. The institute questioned, “Can a two-day program cover the expertise needed for cooperative guidance, fostering, and comprehensive energy project management?”

“The moment the project was announced, external businesses began rushing to villages to hastily form cooperatives,” the institute added. “If this trend solidifies, it could replicate the 2008 Energy Self-Sufficient Village project, leaving communities marginalized and conflict-ridden.”