Research on the Appropriate Rent for Solar Power Plant Investment on Public Land of Local Government

Heehwan Kang; Hojoong Lee; Yuseon Lee; Bora Na

doi:10.7836/kses.2023.43.5.061

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2023 Vol.43, Issue 5 Preview Page Next Page

Research Article

Research on the Appropriate Rent for Solar Power Plant Investment on Public Land of Local Government 지방자치단체 공유지의 태양광 발전사업 투자 유치를 위한 적정 임대료 연구

30 October 2023. pp. 61-67

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Abstract

In this study, we analyzed the investment returns of solar power plants and compared them with those of commercial real estate. The analysis revealed that solar power plant operators should aim for a 10.72% minimum rate of return. In the Paju area of the Republic of Korea, the rent was confirmed to be 35,984 won/kW annually for building-based solar power plants and 25,488 won/kW annually for ground-based solar power plants to achieve this rate of return. According to our results, if local governments focus on developing solar power plants by leasing public land, they could set reasonable rents that satisfy both the local government and solar power plant operators.

Keywords

Solar Power Plant

Rent

Profitability Analysis

Local Government

Public Land

Investment

키워드

태양광 발전소

임대료

수익성 분석

지방자치단체

공유지

투자

References

Seoul Metropolitan Council, Partial Amendment to the Seoul Metropolitan Energy Ordinance, 2013. https://ms.smc.seoul.kr/attach/record/SEOUL/appendix/a08/A0029243.pdf. last accessed on the 24^th August 2023.

Seoul Metropolitan Government, Seoul Metropolitan City Notice No. 2013-1984, 2013. https://www.seoul.go.kr/news/news_notice.do#view/3939. last accessed on the 24th August 2023.

Choi, T. and Lee, J., The Improvement of Real Estate's Profitability Using Solar Photovoltaic Systems, Appraisal studies, Vol. 13, No. 2, pp. 43-52, 2014, UCI : G704-SER000010156.2014.13.2.003.

Seo, T., Woo, J., and Lee, J., Analysis on Building and Monetization of Solar Power Generation Complex through Rental of Private and Institutional Idle Space, The Journal of the Korea Institute of Electronic Communication Sciences, Vol. 14, No. 4, pp. 693-700, 2019, https://doi.org/10.13067/JKIECS.2019.14.4.693.

Choi, J. and Park, T., A Study on the Appropriate Rent of Restaurant Franchises Lease Small Commercial Real Estate in Korea, The Korean-Japanese Jounal of Economics and Management Studies, Vol. 93, pp. 77-91, 2021, https://doi.org/10.46396/Kjem..93.7. 10.46396/kjem..93.7

Lee, G. and Lim, D., Establishment and Operation of Long-Term LCOE Forecast System for Expansion of Renewable Energy (2/5), Korea Energy Economics Institute.

Information

Publisher :Korean Solar Energy Society
Publisher(Ko) :한국태양에너지학회
Journal Title :Journal of the Korean Solar Energy Society
Journal Title(Ko) :한국태양에너지학회 논문집
Volume : 43
No :5
Pages :61-67
Received Date : 2023-09-07
Revised Date : 2023-10-13
Accepted Date : 2023-10-16
DOI :https://doi.org/10.7836/kses.2023.43.5.061

Journal of the Korean Solar Energy Society ISSN:1598-6411(Print) 2508-3562(Online) 한국태양에너지학회 논문집

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