Where Factory Rooftop Solar Sits in the 2027 Budget Proposal
On September 1, 2026, Korea's Ministry of Climate, Energy and Environment unveiled its 2027 budget proposal. Total spending comes to KRW 25.73 trillion, up 18.3% from the previous year and the largest in the ministry's history. For small and mid-sized manufacturers, the line item to watch is factory rooftop solar loans.
Keep in mind this is still a proposal that the National Assembly hasn't reviewed yet. Loan terms such as interest rates, caps, and repayment periods will only be confirmed in the Korea Energy Agency's program notice once the budget passes.
Why Your Factory Roof Is Now an Asset
Three Ways to Participate
Self-Consumption
Your plant uses the power it generates. The main benefit is lower bills, and if the requirements are met, the output can count toward RE100 performance. Estimate payback as installation cost ÷ (annual generation × self-consumption ratio × purchase price). For example, if a 100kW system produces about 130,000kWh a year at an assumed KRW 180/kWh, it saves roughly KRW 23 million a year. Actual numbers depend heavily on roof orientation, operating hours, and your tariff plan.
Independent Power Producer
You get a generation license and sell the electricity. It brings in sales revenue, but grid connection queues can be long in some regions, so plan the timeline conservatively.
Roof Leasing
A developer installs and owns the system, and you collect rent. There's no upfront cost, but a third party owns the equipment, and that is where the collateral risk described below comes from.
| Your situation | Recommended model |
|---|---|
| Owned plant, heavy daytime load | Self-consumption |
| Owned plant with a mortgage | Self-consumption first; leasing only with lender consent |
| Leased plant | Leasing or small self-consumption, after talking to the landlord |
| Low load, large roof | Power producer or leasing |
The Hidden Trap: "Repay Your Loan Now"
According to press reports, one factory owner who leased their roof for solar was told by their local agricultural cooperative bank to repay an existing loan of about KRW 1.5 billion within one month or remove the panels. The bank's view was that splitting ownership of the building and the generation equipment could lead to disputes in a foreclosure auction, which lowers the value of the collateral.
Before installation, make sure you:
When you own the system yourself under the self-consumption model, ownership isn't split and this risk drops sharply. Older buildings still need a structural safety check, and depending on your loan terms you may still have to notify the lender.
Preparation Roadmap
Get Ready with KITIM
KITIM supports you from start to finish: economic analysis for each installation model, connections to policy funds and loans, a checklist to review before you talk to your lender, and help answering customers' ESG data requests. Loans like this are often first-come, first-served, so companies that finish preparing before the notice comes out have the edge. If you're considering rooftop solar for your factory, contact KITIM for a consultation today.