More farmers are looking to solar farming on disused mandarin groves for a stable income.

The list of farmers who can start solar farming with governmental support this year has been released. Farmers interested in the business may have to wait for at least one year.

Joseph Kim reports.



Report

[slug] Province gearing up solar farming project

The island is gearing up for a solar farming project utilizing land that once grew mandarin oranges. The project is the first attempt by a local government in the nation.

The (대우) Daewoo Engineering & Construction-led consortium was recently selected as the contractor for the project.

The greatest advantage of the program is stable income for farmers, with no worries about expenses.

More farmers are looking to solar farming on their disused properties, but many will have to wait a year or longer to participate in the project.

[slug] 101 farmers(111 lots) chosen for solar farming with governmental support

The list of farmers who will receive governmental support to convert their farms has been finalized.


While there were 160 applicants in June this year, only 101 farmers or 111 lots were selected.

The total area covers 88.6 hectares, of which half are disused mandarin groves.

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Among the project sites are forest areas, abandoned farmland and community ranches.

RECORDED
Mun Won-il / Representative of Province
We held an information session about the project last Friday for the selected farmers. We will have a contract signing with the selected appliants at the beginning of October.
<녹취:문원일 제주도 경제통상산업국장>
"101농가가 선정됐기 때문에 이분들을 모시고 9월 30일 설명회를 개최하고 10월 초부터 계약에 들어가도록 하겠습니다."

There are safeguards to secure a certain level of income, but rates of return may vary.

##### c,g in #####
The province says that on average, a solar farm of 16,500 square meters will generate 51 million won of annual income, over 20 years. But that number can be a bit misleading.

31 million won is expected to be made annually until the 16th year of solar farming and 131 million won is expected from 17th to 20th years.


Solar farming income
(16,500m2)
For 20 yrs: 51 million won/year on average
1st-16th yr: 31 million won/year
17th-20th yr: 131 million won/year

Due to the loan payment schedule, profits are marginal for the first 16 years.
##### c,g out #####


RECORDED
Mun Won-il / Representative of Province
Solar farmers will have a 16 year loan repayment schedule if they take loans from banks. For the first 16 years, returns would be lower than those in the 17th through 20th years.
<녹취:문원일 제주도 경제통상산업국장>
"금융권에서 돈을 빌려 사업을 하게됩니다. 갚아가는 기간이 16년 동안입니다. 그래서 갚아가는 기간은 갚을 금액이 있기때문에 농가의 수익이 적은거고, 17년차부터는 다 갚았기 때문에 많아지는 구조가 되겠습니다."

The province doesn't have specific plans for a second round of solar farms at the moment. But properties over 16,000 square meters are expected to be the target of future renewable energy projects.

Farmers aged 65 or older will have priority. But if their land is classified as "good farm land", they won't have any advantage in the selection process.

Additionally, farmers chosen for the project will not be permitted to convert the use of their land back for 20 years. Prior to applying, farmers should consider whether or not converting to solar farming is right for them.

[reporter] Joseph Kim
[camera] Kim Yong-min

Joseph Kim, KCT