[Edaily Reporter Kim Hyung-wook ] Households that reduce their electricity usage by 25% this summer—primarily between 5 p.m. and 8 p.m. on weekdays—will be able to cut their bills by up to 67%.

The Ministry of Climate, Energy, and Environment announced on the 28th that, in collaboration with #KoreaElectricPower Corporation (KEPCO), it will launch three customized energy cashback programs featuring these measures starting in July.

Starting in July and running through the end of this year, the government will operate an enhanced cashback program that provides 30 to 120 won in cash for every kilowatt-hour (kWh) saved to households that reduce their monthly electricity consumption by at least 1% compared to the previous two years. Previously, households that reduced their consumption by 3% or more received a maximum cashback of 100 won per kWh saved, but starting this year, the eligibility threshold has been lowered while the payout amount has been increased.

The Residential Energy Cashback program is a system introduced by KEPCO in 2023 to encourage electricity conservation in households. Under this program, participating customers who reduce their monthly electricity consumption compared to the average of the previous two years receive cashback, which KEPCO deducts from the following month’s bill. Currently, approximately 1.79 million households are enrolled and receiving benefits.

In addition, the Ministry of Climate Change will provide a cashback of 500 won per kWh saved to households that reduce their electricity usage between 5:00 p.m. and 8:00 p.m. on weekdays in July and August below the average usage for the same time period over the previous two years, up to a monthly limit of 10,000 won. The aim is to maximize energy-saving efforts for household appliances during weekday evenings—when solar power generation stops—even though demand for air conditioning remains high during summer days.

For example, if a household that averaged 400 kWh in July over the past two years reduces its consumption to 300kWh by conserving energy primarily between 5:00 p.m. and 8:00 p.m. on weekdays, their bill would not only decrease from 73,000 won to 46,000 won due to the reduced electricity consumption, but they would also receive a total of 22,000 won in additional benefits: a 12,000 won cashback for reducing consumption this month, plus a 10,000 won cashback for saving during summer peak hours. In other words, a 25% reduction in electricity usage can result in a 67% discount.

To receive the summer peak-hour cashback, a household must have a smart meter (AMI) installed; however, since the adoption rate of AMIs in apartment units is only in the 10% range, there are limitations to how many households can receive the maximum benefit. Nevertheless, the system remains such that households can receive more in bill savings than the actual amount of energy they conserve.

Authorities are also launching a pilot program for the first time this fall (September–October), offering 100 won per kWh in cashback to households that increase their use of smart appliances—such as washing machines and dryers—on weekends and public holidays between 11:00 a.m. and 2:00 p.m. The aim is to encourage maximum electricity consumption during periods of high solar power generation.

KEPCO plans to provide guidance on how to maximize bill savings through new Energy Cashback sign-ups and the three customized Energy Cashback programs introduced this time via its “Smart Electricity Life” platform, which helps users manage their electricity consumption and offers energy-saving tips.

An official from the Ministry of Climate Change stated, “We will continue to explore ways to expand benefits that consumers can tangibly feel, reflecting the power supply and demand situation resulting from the expansion of renewable energy (such as solar power),” adding, “Through this, we will foster a culture where consumers flexibly adjust their electricity usage based on economic incentives and promote national-level efficiency in electricity consumption.”