Korean FIT(Solar power generation)

What is Korean FIT?

The Korean FIT was introduced to create stable profits for small-scale solar power generation businesses and improve electricity sales procedures'convenience. It will be promoted for a limited time for five years. (implemented from July 12, 2018)

It is a system that allows you to trade with six obliged suppliers (KHNP, Southeast Power, Midwest Power, Western Power, Southern Power, East-West Power) for 20 years at a fixed price calculated as the highest price among the average price of competitive bids for fixed-price contracts in the previous year.


Korean FIT system

Korean power generation
difference support system

한국형 FIT

What is Korean FIT?





  • Participation qualification
  • Contract unit price
  • Contract method




Business operator (year-round)

  • Check qualification conditions



Register facility

Center (within 1 month after receipt)

  • Receive and review equipment
  • Issue receipt of equipment




6 obliged power suppliers ↔ Business operator

  • Center relays contract




6 obliged power suppliers ↔ Business

  • SMP (KEPCO, Power Exchange) and
    REC (6 power suppliers)

Qualification for application

  • Solar power generation companies with less than 30kW facility capacity
  • Solar power generation business operator with a facility capacity less than 100kW, farmers according to the Agriculture-Rural and Food Industry Framework Act', fishermen under the 'Fisheries-Fishing Village Development Fundamental Act,' a person who has obtained a business license under the 'Livestock Act'
    Solar power plants less than 100kW: Farmers, livestock farmers, fishers, and cooperatives can participate by submitting documents proving their qualifications.
    ※ Cooperative: Refers to a cooperative according to the 'Basic Act of Cooperatives' or a cooperative composed of farmers, livestock farmers, and fishermen
  • Farming associations, etc. promote solar power generation projects with a facility capacity of less than 100kW by combining members of the above 2 members.
  • Among the associations according to the "Basic Act of Cooperatives," those who are promoting photovoltaic power generation projects with a facility capacity of less than 100kW.
  • A person who connects and installs an ESS facility to a photovoltaic power generation facility that meets one or more of the above requirements 1-4 (however, it is not possible to apply for an ESS alone facility)

How to participate

  • New Business Operators: Select 'Korean Feed in Tariff (FIT)' when applying for Renewable energy Portfolio Standard (“RPS”) facility confirmation after the power plant has been completed.
  • Existing businesses: Temporary permission (until the end of 2019), apply for participation in the ' Korean Feed in Tariff (FIT)' in the RPS system.

Contract procedure

  • After applying for Korean FIT,' the Korea Energy Agency reviews the result (equipment certificate) to the business operator. Within 1 month after the notification, a fixed price contract will be signed with six obliged power suppliers*.

    * 6 obliged power suppliers: Korea Hydro & Nuclear Power, Korea South-East Power, Korea Midland Power, Korea Western Power, Korea Southern Power, Korea East-West Power

Selling Price

  • The higher of the average price of successful bids less than 100kW for each half of the previous year's fixed-price contract competitive bidding. Example) The purchase price (SMP+REC) in 2020 is KRW 173,981/MWh*, and it can be sold for 20 years at the same price.
  • As Korean FIT signs contracts with six obliged power suppliers for all contracts applied at a fixed price calculated without separate bidding competition, stable profitability and procedural convenience for small-scale solar power generation companies are expected to improve.

Comparison of fixed price bidding contract and Korean FIT system

Comparison of fixed price bidding
contract and Korean FIT system
Fixed price bidding contract Korean FIT

Subjects to participate

No limit

Less than 30kW: No limit, Less than 100Kw: Farmers, livestock farmers, fishermen and cooperatives

Contract period

20 years

20 years

Bid Status

Bidding Participation (Competition Method)

No Separate Bid

Fixed Price (SMP+1PEC)

151,439 Won (20 First Half Bidding Average Price)

173,981 Won (20 Korean FIT Purchase Price)

Purchase Volume

Obliged Yearly supply capacity

No limit

Application period

Twice a year

All year round