On September 18, 2026, an amendment to the Act on the Promotion of New and Renewable Energy took effect, capping how far local setback rules can push solar power plants away from roads and homes. To mark the change, Attorney Sungwoo (Goni) Kim of SOLARIS contributed a column on the legal issues that can arise in solar construction contracts and how to address them.

The amendment abolishes setback requirements from roads and caps setbacks from residential areas at 200 meters. Even so, local governments still have discretion during permitting, such as in landscape reviews. Attorney Kim advises that contractors who do not want to carry all of the permitting uncertainty should make obtaining permits an express condition precedent to starting construction. He also stresses the need for clauses that grant additional construction costs and time extensions if the design changes when a permit application must be refiled.

SOLARIS will continue to help businesses in the energy and environmental sectors prevent legal disputes and to provide practical legal advice.

- Original column: Setback Caps Take Effect: What They Mean for Solar Plant Construction Contracts (p. 28)

- About Attorney Sungwoo (Goni) Kim: https://solarislaw.net/구성원/member-ksw