TAIPEI (Taiwan News) — A new environmental impact assessment system for solar panel installations came into effect at the start of this year to protect Taiwan’s soil and waterways, but there are concerns it may create new problems.
Business Today spoke to industry representatives and interested parties before the regulations came into effect. They were concerned that without further changes from the government, efforts to improve their operations' sustainability may be made in vain.
The new regulations for photovoltaic, or PV, projects apply to installations above a certain size in environmentally sensitive areas and on sloped terrain. While the new regulations are expected to facilitate better communication between societal groups, unclear assessment standards could slow down reviews.
This is particularly true for developing PV projects on hillsides, which developers consider challenging due to the need for heavy investment in environmental protection. Developers must avoid prime farmland and areas with slopes exceeding 30% under the new regulations.
New soil and water conservation measures significantly increase costs, possibly by up to NT$10 million (US$304,994) per hectare. "The challenges of developing PV projects are immense," one international solar developer noted with frustration.
An unspoken industry consensus states that developing PV projects on slopes should be avoided. Besides the difficulties of selecting sites, significant investment is required to ensure ecological protection and soil conservation. Government attitudes also play a crucial role.
"If the government is unsupportive from the outset, developers could spend years on a project only to have it rejected," an industry representative said. Developing PV projects on hillsides was already difficult under previous environmental assessment regulations, and will be even harder now, they said.
Under previous regulations, only PV projects located in protected wetlands needed to undergo environmental assessment. Compared to other renewable energy projects like wind and rooftop solar power facilities, the regulations were relatively relaxed.
These standards have resulted in zero environmental assessments of PV projects since they were implemented in 2010, leading to growing concerns about their environmental impact. Concerns were raised regarding deforestation at solar power sites in Tainan and Pingtung, for example.
With pressure from environmental impact assessment committee members and legislators, the environment ministry introduced new regulations to manage developments in environmentally sensitive areas and on hillsides. After consultations with the economic ministry and the public, the environment ministry formulated regulations derived from Japan.
Environmental Protection Department Director Hsu Shu-chih (徐淑芷) noted that Japan mandates environmental assessments for all PV projects exceeding 40 megawatts, regardless of location, in addition to nature reserves and designated agricultural zones. She said that given Taiwan's relatively small land mass, the environment ministry set the threshold at 20 megawatts for hillsides, which roughly corresponds to a 15-hectare development.
Hsu said she believes PV assessments should be relatively straightforward since solar farms do not emit pollutants. As long as developers address environmental and community concerns, approval "should not be difficult in theory," she said.
Hsu said moving forward, the ministry may refer to existing guidelines for offshore PV projects. It will also conduct studies to determine appropriate distance requirements from residential areas to minimize noise and glare. She added that PV regulations in Taiwan, like other places, will likely evolve.
Land use expert and National Chengchi University Professor, Cheng An-ting (鄭安廷), noted that the new regulations are detailed in Taiwan’s Spatial Planning Act. Given that hillside developments often involve tree clearing, land leveling, and soil erosion risks, stricter controls are justified compared to flat land, Cheng said.
Cheng added that the environmental assessment processes need to consider ecology and social communication. He suggested that government-led environmental consultations with the public are perceived as more credible than developer-led meetings, and could help build public trust.
Cheng said the PV industry is under intense scrutiny, yet the public remains less critical of hillside housing projects with higher ecological impacts. He suggested environmental assessments may provide a public platform for industry-community dialogue, fostering trust in Taiwan’s energy transition.
Industry players are not entirely opposed to the new assessment requirements. However, they are frustrated the government has frequently changed regulations over the past eight years, causing policy uncertainty and delays.
For example, in 2020, the interior ministry required permits for PV projects in some coastal areas, the agriculture council banned installations on farmland under two hectares, and the economic ministry imposed new runoff controls. These changes meant PV projects failed to get off the ground.
One international green energy firm representative said: "New laws might be well-intended, but the key is execution. Time and again, we see a lack of government capability."
They cited the example of a runoff control regulation introduced in 2021, which was meant to be reviewed within three months. When handed over to local governments for review, approvals took five to 10 months, delaying projects.
With the new environmental assessment requirements, developers now estimate that a 20-megawatt PV project could take at least five years from application to completion. "The government always enacts new laws before figuring out execution issues," the developer said.
A clear timeline for each approval process stage is needed to prevent bureaucratic delays, they said. Taiwan’s lack of experience with PV environmental assessments means ensuring the system operates smoothly requires careful policy coordination and supporting measures.
One PV company chair said ecological sensitivity, soil and water conservation, and local community engagement and compensation would be key for future assessments. They urged the environment ministry to establish standardized review criteria based on scientific data to improve efficiency, providing templates and simplified forms for developers to follow.
Without clear standards, developers risk endless document resubmissions due to vague requirements, they warned "Unlike buildings, PV installations on sloped terrain pose minimal landslide risks,” another industry representative added.
The representative added that developers already conduct ecological and soil conservation assessments. Strengthening standards is fine, and as long as there are clear guidelines to follow, operators will be willing to cooperate, they said.
According to the environment ministry, the new rules will only apply to new applications. As of November, the economic ministry’s Energy Administration had 12 pending PV project applications, two of which will require environmental assessments under the new rules.
The number of immediately affected projects appears small. However, many projects still in the land acquisition and planning stages may fall under the new requirements once applications are made.
Beyond clear review standards, industry representatives are also concerned about approval efficiency. Under the new system, PV developers must first pass the environment ministry’s assessment, then obtain local government approval, and finally apply to the Energy Administration for an electricity business license.
To streamline the process, Taiwan Photovoltaic Industry Sustainability Association Chair Tsai Chia-chin (蔡佳晋) recommended environmental assessments be conducted with electricity business license applications, as is already the case for coastal permits and runoff control approvals.
DPP Legislator Lin Shu-fen (林淑芬) suggested that the economic ministry conduct a policy-level environmental assessment. She said this could identify suitable PV development areas nationwide through cross-ministry coordination.
