## Solar construction process and benefits

Additional benefits through reduction of electric charges and effect of special rates on new renewable energy by installing solar in shopping malls and housing

## Benefits of self-consumption solar energy

• Saving of electric charges by consuming self-produced electricity

• Discount of electric charges by New Renewable Energy discount system

Ex) When installing 3kW 3kW x About 3.6 hours (Annual average generating hours) x 365 days = 3942kWh

• Annually about 600,000won of cost-saving effect

Annually about 370,000won +About 180,000won from discount for new renewable energy + Progressive tax avoidance effect

## Discount of New Renewable Energy

Current Revised
10~20% discount of total electric charges according to the self-consumption ratio of new renewable energy (Excepting if self-consumption ratio is less than 20%) 50% discount of electric charges saved by self-consumption of new renewable energy (Self-consumption X Average unit price during the middle and maximum load time of previous year X 50%)

## RPS (Renewable Portfolio Standard)

A system that imposes power producers (supplier) with generating units (excepting new renewable energy generating units) over a certain size (500MW) a duty to supply more than a certain percentage out of total energy production using new renewable energy

Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 After 2024
Ratio 2.0 2.5 3.0 3.0 3.5 4.0 4.5 5.0 6.0 7.0 8.0 9.0 10.0

## Renewable Energy Certificates (REC) and System Marginal Price (SMP)

Solar generation quantity is sold to KEPCO or Korea Power Exchange through the payment of price (SMP), and sellers are granted REC according to the weighted value granted by Korea Energy Agency when they sell to power market. 1 REC is calculated as a unit of 1MW. Accordingly, {Monthly total output (kW)x Weighted value}/1000}=REC (Decimal point rounded off)
ex) In case solar generation unit is installed on top of a building (Monthly energy production 1000Kw, Weighted value 1.5)
1000 * 1.5 / 1000 = 1.5REC (1REC created, 0.5REC accumulated)

Power Energy Type and Standards 2013 2014
Classification Detailed Standards Current After revision
Solar energy Land (excepting forest land) Less than 100Kw 1.2 Same as Current -
From 100Kw 1.0 (Composite) Same as Current -
Exceeding 3,000kW 0.7 (Composite) Same as Current -
Forest land   0.7~1.2 0.7 Grace period
Building Less than 3,000kW 1.5 Same as Current -
Exceeding 3,000kW 1.0 (Composite) Same as Current -
Ocean-floating solar 1.5 Same as Current -
Self-consumption solar energy 1.0 Same as Current -

## Effective installation using veranda railings

As a solar energy generating unit using railings of apartment or house, it aims to reduce the use of electrical power system of KEPCO.

The Jo Eun Energy Co., Ltd.     130, Hyeoksinsandan 3-gil, Naju-si, Jeollanam-do, Korea
CEO Cho Guk-seong      Business Registration No. 785-81-00527      TEL 1544-8972     FAX 061-807-2242     Email energy8972@naver.com

COPYRIGHT The Jo Eun Energy co., Ltd. ALL RIGHS RESERVED.