Solar energy is hot commodity in Hong Kong, but there is still room to grow

Although solar power makes up less than 0.1 per cent of the city’s energy mix, there is room to grow.

According to research by the Hong Kong Polytechnic University (PolyU), solar panels can be installed on the rooftops of three-quarters of buildings in Hong Kong, potentially generating around 10 per cent of the city’s energy needs.

This is good news. The city has committed to carbon neutrality by 2050, and currently the power industry is contributing as much as 70 per cent of greenhouse gas emissions.

Solar energy seems to be gaining popularity, as global conflicts drive up oil and diesel prices. It is also a good alternative. For one, there is plenty of sun. Another reason is the durability of solar-powered equipment, which supposedly can last 15 to 30 years.  

Hong Kong is the site of many exciting solar energy projects. Local non-profit CarbonCare InnoLab (CCIL) launched the JC SolarCare programme in 2019, with funding from the Hong Kong Jockey Club, to speed up the use of solar energy in the community.

Partnering with 61 NGOs, CCIL has installed more than 4,900 solar panels at dozens of locations across Hong Kong. The solar power it generates is sold to electric companies through the Feed-in Tariff (FiT) programme, raising a total rebate of HK$8.13 million for the NGO partners last year.

In 2020, Widex Technology Development, a Hong Kong-based solar energy developer, began working with the Hong Kong University of Science and Technology to install over 8,000 photovoltaic panels across the school’s campus. When finished, the array will be the largest in Hong Kong. The total electricity output is expected to be 3 million kWh per year, and the revenue generated from FiT will be HK$160 million through 2033 and HK$4 million per year thereafter.

In another tour de force, in 2021, Dairy Farm International – now called DFI Retail Group – announced plans to cover the roof of Wellcome Fresh Food Centre, its food facility in Tseung Kwan O, with 2,000 solar panels, generating enough electricity to power 250 homes. With the installation completed in 2022, the solar system produces 1 million kWh renewable energy each year, under CLP Power’s FiT scheme.

In 2024, a research team from the Electrical and Electronic Engineering Department at PolyU introduced a smart, solar-power freezer truck that hopes to eliminate 16 tons of carbon dioxide emitted by a conventional freezer truck per year.

Ferries are also in the game: Sun Ferry’s two diesel-electric hybrid vessels, equipped with solar panels, will begin serving passengers between Central and Cheung Chau Island by 2025. 

Funding exists for entrepreneurial solar-energy businesses. ZNShine Solar, which produces 10 gigawatts of power in China and has expansion plans, recently applied to be listed on the Hong Kong Stock Exchange.

In collaboration with a Sri Lankan firm, GCL Technology – another locally listed company – plans to construct a 50-megawatt solar power plant in the Philippines. This is followed by its announcement to complete the first phase of a 500-megawatt solar module plant in Kunshan, Jiangsu Province, by next year.

Early last year, Hong Kong-based United Energy Group acquired the company that will build the largest photovoltaic power plant in Bulgaria. The 250-megawatt project was purchased for 37.5 million euros (HK$305 million) and should be in operation this year.

Meanwhile, Hong Kong tycoon Li Ka-shing’s CK Infrastructure bought UU Solar, an operator of 70 renewable power generators in the UK, for 90.8 million pounds (HK$882.5 million) in May 2024. 

Public utilities are also showing tremendous leadership. Last year, Towngas began a trial installation of solar-powered kiosks across the city, in a bid to more effectively monitor its gas pipelines. Along with Internet of Things (IoT) sensors, the 200 smart governors are expected to reduce electricity wastage and carbon production by 6,000 kWh and 3,100 kilogrammes, respectively. 

Renewable energy seems to be an exciting alternative source of power for Hong Kong. However, there are challenges ahead. For one thing, the costs for an average consumer are still high.

Borrowing from commercial banks to fund mini-grids seems to be difficult, especially since there is still no gold rush for photovoltaic panels. For buyers, a small rooftop installation can recover its costs in four to six years, while farmlands, as experience has shown in the Global South, will take a decade longer. 

Admittedly, NGOs and solar-power companies, especially locally listed ones with much of their businesses abroad, can pitch in with innovative financing solutions that can make solar power more accessible.

See also: A bright future? Why solar energy in Hong Kong still has a long way to go

Microfinance organizations, the International Finance Corporation – a member of the World Bank Group – and private companies have already taken such a large step with intuitive, pay-as-you-go payment plans, such as in Lagos, Nigeria.

Scalability is another problem. It may still be too early to tell if solar power is feasible in Hong Kong. First of all, it constitutes only about 2 per cent of all renewable energy generated, according to LegCo researchers. Second, solar arrays are largely restricted to rooftops – a gross underutilization of space, considering the large number of high-rise buildings and skyscrapers in Hong Kong. 

This will hopefully change soon, with enthusiastic local and overseas businesspeople scaling up manufacturing and seeking innovative ways to collect sunlight on the outer walls of edifices.

Government officials are rallying consumers, too, to buy solar-energy products with FiT and tax incentives.

The city may be ready for a power boost.