Despite its prolonged slump, the solar power business is expected to reach a break-even point as early as next year, according to Hanwha Group, Korea’s leading solar energy player.

“Solar energy is the key solution to provide for the future energy crises and to achieve sustainable growth,” said Hong Ki-joon, vice chairman of Hanwha Chemical.

Solar power has long been regarded as the most plausible form of renewable energy, but the market is still in its initial stages, when the amount invested is far higher than the profit level.

Hanwha, too, had doubts over the potential of the solar power business when it first stepped into the sector in 2006 as an attempt to seek a new growth engine.

It was, however, the determination of chairman Kim Seung-youn which added momentum to the business, officials said.

“After consulting energy experts at the 2010 Davos Forum, Kim decided that only solar energy could substitute the limited reserves of fossil fuels,” Hong said.

The conglomerate also set eyes on the possible cost-saving and job-creating effects that the business may have in the domestic and global economy.

A report by the International Labor Organization predicted that the renewable energy business will create some 20 million new jobs by 2030, among which 6.3 million will be in the solar energy sector.

“By kicking off a 10,000-ton-capacity polysilicon factory in Yeosu, we created over 260,000 construction jobs and 500 maintenance jobs,” an official at Hanwha Chemical said.

The greatest strength of solar power is that it may be fully generated during the day, which is the peak demand time for conventional electricity, according to officials.

The time required to establish the required infrastructure is also relatively short ― as short as six months, as compared to eight years for a nuclear power plant and 5.5 years for a thermal power plant.

Despite these advantages, Hanwha has suffered massive losses over the past years in the solar power business.

The operating deficit was 252.8 billion won ($233 million) last year and 61.8 billion won during the first half of this year, according to officials.

“Though difficulties remain, we expect the supply and demand to reach a balance point some time next year, and Hanwha is sufficiently capable of surviving until then,” Hong said.

Upon such convictions, the group is continuing its welfare projects such as the Happy Sunshine Campaign, donating solar power-generating systems to social welfare organizations, officials said.

Hanwha was also counted as one of the nine companies to survive in the world solar power market in 2015, according to a report by U.S.-based Green Tech Media,

By Bae Hyun-jung (tellme@heraldcorp.com)