Barriers to cost-effective solar deployment: the role of non-hardware factors in South Korea

초록

The persistently high cost of solar PV installation in South Korea, compared with other countries, raises important questions about the role of non-hardware factors in shaping cost efficiency. This study empirically examines a broad set of determinants, including economies of scale, renewable energy support schemes, delays between project approval and commercial operation, residential setback regulations, and learning-by-doing reflected in project developers' cumulative experience. We also analyze market structure and competition, captured by the use of Chinese-made modules and the market share of module manufacturers. The findings reveal that these non-hardware factors have a significant impact on installation cost efficiency, highlighting their importance alongside hardware-related costs. The results offer valuable policy insights and underscore the need for more effective institutional and regulatory frameworks to enhance the cost-efficient deployment of solar PV, with broader implications that extend beyond a single-country context.

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