Sunlight Income Village (햇빛소득마을)

A resident-participatory renewable energy business model in which rural villages install solar power facilities and residents share the generation revenue

Sunlight Income Village (햇빛소득마을)

Overview

Sunlight Income Village is a resident-participatory renewable energy business model in which rural and fishing village communities install solar power facilities on idle land or farmland and return the revenue earned from power generation to residents in the form of dividends or pensions. It differs from conventional large-scale private solar projects in that it is designed not merely as the construction of a power plant but so that local residents directly enjoy the benefits of the energy transition. It spread nationwide in the late 2010s as the government's Renewable Energy 3020 policy dovetailed with demands for diversifying rural income, and in the 2020s it is evolving into a local-government-led "sunlight pension" form.

Main Content

Background

Weakening income foundations due to aging populations and population outflow had long been a challenge in rural areas. At the same time, the government promoted the expansion of solar power deployment by setting a target for the share of renewable energy generation by 2030. Sunlight Income Village emerged as a solution combining these two problems. In this structure, the village community acts as the project entity, provides the site, and accumulates generation revenue in a communal fund to be used for resident welfare and pension resources.

Operating Method

The basic structure is as follows. First, a village association or cooperative forms the project entity. Second, solar facilities are installed using village common land, idle land, rooftops, and the like. Third, electricity is sold to the Korea Electric Power Corporation grid to generate revenue. Fourth, the proceeds are distributed according to residents' equity stakes or accumulated in a village communal fund. Some projects combine resident solar (small-scale facilities per household) with village solar (large communal facilities).

Major Project Types

Village communal solar: Facilities of 100 kW to 1 MW are installed on village common land and revenue is shared communally.
Resident rooftop solar: Small facilities are installed on household rooftops and individual revenue is earned.
Agrivoltaics: Facilities are installed at a height above rice paddies and fields so that farming and power generation are pursued in parallel.
Floating solar: The water surface of reservoirs and dams is used to reduce land damage.

Achievements and Limitations

Achievements cited include supplementing farm household income, revitalizing village communities, and enhancing the acceptability of renewable energy. On the other hand, limitations cited include delays in grid connection waiting, the burden of initial investment costs, the complexity of power generation business permits and licensing procedures, and controversies over landscape damage in some areas. There are also cases in which projects were halted because it was difficult to coordinate conflicting interests among residents.

Latest Trends

In 2024–2025, the local-government-led "sunlight pension" model is emerging. South Jeolla Province and others are spreading a structure in which residents invest small amounts and receive revenue in the form of a pension over the long term, and the government is pursuing institutional improvements to reorganize regulations on rural solar siting and to alleviate the problem of waiting for grid connection. In addition, due to RE100·RE100 implementation pressure and increased corporate purchases of renewable energy, the range of electricity buyers for small-scale village-level generation projects is diversifying. Combined models linking with energy self-sufficient villages and energy commons are also being attempted, and establishing post-management systems such as the recycling of waste panels is emerging as a new task.

Future Outlook

The economic viability of resident-participatory generation is expected to improve due to rising electricity rates and stronger carbon neutrality policies. However, the sustainability of projects is likely to depend heavily on grid conditions, fluctuations in generation prices (SMP·REC), and the continuity of resident participation.