Solar heating and Cooling

Solar water heating technologies are becoming widespread and contribute significantly to hot water production in several countries. China, Germany, Turkey, India, and Australia led the market for newly installed capacity

during 2009, with China, Turkey, Germany, Japan, and Greece taking the top spots for total installations by the end of that year.232 (See Figures 9 and 10, and Table R5.) In 2010, existing solar water and space heating capacity increased by an estimated 25 gigawatts-thermal (GWth), or about 16%, to reach approximately 185 GWth, excluding unglazed swimming pool heating.233 China added an estimated 17.5 GWth (25 million m2 of collectors) for a total of just under 118 GWth (168 million m2).234 The European Union accounted for most of the remaining global added capacity. However, due to the economic recession, new installations continued to decline in some key European markets, including Austria, Germany, and France. The Greek and Italian markets increased slightly, while Spains market held constant in 2010 after increasing about 21% the previous year.235 Growth in developing European markets including the Czech Republic, Denmark, Poland, Portugal, Switzerland, and the U.K. did not make up for the decrease in larger markets. Total EU additions in 2010 came to 2.6 GWth, down 10% relative to 2009 and nearly 19% below the 2008 market, bringing existing capacity to 25.1 GWth.236 Germany remained Europes largest installer, accounting for nearly one-third of EU additions, but new installations declined for the second year in a row (off 26% relative to 2009) due greatly to the temporary halt and restructuring of the national rebate program, and to decreasing natural gas market prices.237 Germany added

about 0.8 GWth for an existing capacity of 9.8 GWth by years end.238 The share of combination systems for both water and space heating increased to about two-thirds of the market.239 Austria (3.2 GWth) and Greece (2.9 GWth) continue to rank second and third, respectively, for total installed capacity.240 Brazil added about 0.6 GWth in 2010.241 The Brazilian market has been increasingly rapidly in recent years, with most of the installations in the southeastern states.242 Elsewhere in Latin America there are very small but growing markets, including in Chile and Uruguay.243 Outside of China, Japan and India represent the largest markets in Asia. During 201011, India added about 0.35 GWth (0.5 million m2) of solar heat capacity for an estimated total of 2.8 GWth (3.97 million m2) at the end of January 2011.244 The U.S. market (excluding unglazed swimming pool heating) is still relatively small but is gaining ground. California appears to have overtaken Hawaiis lead, and these states are followed by Florida and Arizona.245 An estimated 35,500 systems (nearly 0.2 GWth) were installed nationally in 2010, representing 5% market growth and bringing total capacity close to 2.3 GWth.246 The slower rate of growth relative to 2009 was due to the economic crisis and to the low cost of competing home-heating fuels, which extended the payback period for solar heat systems.247 In Africa, markets were expanding in Egypt, Ethiopia, Kenya, Morocco, Namibia, South Africa, Tunisia, and Zimbabwe, among others.248 For example, Egypt had an estimated 1 GWth (700,000 m2) of solar thermal systems by the end of 2010, and Moroccos collectors totaled an estimated 0.2 GWth (280,000 m2).249

Although it ranked 18th overall, Cyprus remained the world solar heating leader on a per capita basis at the end of 2009, with 554 kilowatts-thermal (kWth) per 1,000 inhabitants, followed by Israel (391 kWth).250 Austria, which had 315 kWth per 1,000 inhabitants in 2009, remained the leader in continental Europe, followed by Greece (266 kWth) and Germany (102 kWth).251 Solar space heating and cooling are gaining ground as well, particularly in Europe. The most advanced solar thermal markets are in Austria, Germany, and Spain, where applications include water and space heating for dwellings of all sizes, hotels, and large-scale plants for district heating, air conditioning, and cooling.252 An estimated 115 solar supported heating networks and 11 solar cooling systems were operating in Europe by the end of 2009.253 Canada and Saudi Arabia also had significant systems installed. A 0.03 GWth system commissioned in Riyadh in early 2011 to provide hot water and space heat for 40,000 university students overtook an installation in Marstal, Denmark, to become the worlds largest.254 What may become the worlds largest solar cooling plant (3,900 m2, or 0.003 GWth) was under construction in Singapore in early 2011.255 Solar heat and steam can be used for various industrial

processes as well, although this is the least developed solar thermal technology. A number of solar industrial process heat installations came on line during 2009 and 2010, but only about 100 projects are operational worldwide.256 Temperatures below 100C can be produced with typical flat plate or vacuum tube collectors such as those used in smaller systems that are often mounted on rooftops.257 Higher temperatures require parabolic trough or linear Fresnel collectors and good solar resources comparable to CSP, but generally with smaller systems that are often mounted on rooftops and that require lower operating temperatures.258 By early 2011, the biggest solar process-heat application was believed to be operating in Hangzhou, China; other plants also were operating in China and plans were under way to install systems in South Africa and elsewhere.259

heaTInG anD COOlInG POlICIeS

Renewable energy heating and cooling policies are not being enacted as aggressively, nor implemented as rapidly, as policies for electricity or transport biofuels. Still, many more policies for heating and cooling have emerged in recent years, reflecting the significant potential for heating from modern biomass, direct geothermal, and solar hot water/heating. Already the energy from these forms of heating exceeds, in total final energy terms, the energy from all non-hydro renewable electricity as well as all biofuels.89 (See Figure 1.) Heat is supplied through district heating systems in a number of countries, but for most buildings and industries it is supplied on-site using a wide range of individual appliances and fuels.90 Recent policies for renewable heating and cooling have favored regulatory approaches that mandate energy shares or equipment requirements, although policy approaches based on quotas are gaining momentum. Governments have traditionally relied on direct capital grants and tax credits for purchasing and installing renewable heating technologies, but new policies that provide public budget neutrality have been gaining favor.91 In particular, mandates for solar hot water in new construction represent a strong and growing trend at both the national and local levels. Israel for a long time was the only country with a national-level mandate, but Spain followed with a national building code in 2006 that requires minimum levels of solar hot water in new construction and renovation. Many other countries have followed suit. Indias nationwide energy conservation code requires at least 20% of water heating capacity from solar for residential buildings, hotels, and hospitals with centralized hot water systems.92 South Koreas new 2010 mandate requires on-site renewable energy to contribute at least 5% of total energy consumption for new public buildings larger than 1,000 square meters. Uruguay mandates solar hot water for some types of commercial buildings with high hot water requirements

like hotels and sports clubs. In 2009, Hawaii became the first U.S. state to mandate solar hot water in new singlefamily homes, a policy that entered into force in 2010. One example of a recent new policy is the 2010 solar hot water/heating National Strategic Reference Framework (QREN) in Portugal.93 The QREN is a protocol established with several commercial banks to facilitate investment in solar hot water/heating for residential installations and also installations by small (45% non-refundable grant) and medium-sized (40% grant) enterprises. Another example is the Brazilian program Minha casa, minha vida (My House, My Life), which is targeting 300,000400,000 solar water heaters in social housing projects.94 The Brazil program targets 15 million m2 of total solar collector area by 2015, up from 6 million m2 in 2010. In Spain, in addition to the national solar hot water

04
RENEWABLES 2011 GlObal STaTuS RePORT

Solar heating and Cooling Industry

China has dominated the world market for solar water heating for several years and is also the world leader in manufacturing. Chinese manufacturers of solar water heaters produced 49 million m2 of collector area in 2010. More than 5,000 firms were active in the Chinese industry, with most of them operating at the regional and/or national levels; however, approximately 20 of these firms were active internationally.53 The largest Chinese firms include Himin, Linuo, Sunrain, and Sangle. A major issue for Chinese manufacturers continues to be the need for systematic improvements in quality and product standardization. Most Chinese production is installed domestically, but increasingly China has been exporting to developing countries in Africa and Central and South America, regions with warmer climates where thermo-siphon systems can be sold. Chinese-made systems have also begun to enter the European market.54 In Europe, the solar hot water/heating industry has been marked by acquisitions and mergers among leading players, solid annual growth, and a shift toward increased use of systems for space heating in addition to hot water. Leading manufacturers include Alanod, Almeco-TiNOX, Bosch, Bluetec, GreenOneTec, the Ritter Group, and Solvis. In 2010, leading manufacturers in Germany, Italy, Austria, and Spain began looking increasingly beyond domestic/regional markets to the emerging markets of India and Brazil. Leading European systems suppliers in 2010 included GreenOneTec, Viessman, Schueco, Thermosolar, Solvis, Ritter Solar, Wolf, Kingspan Solar, Vaillant, KBB Kollektobau, Riello Group, Ezinc, and Bosch Thermoteknik. As a result of a 26% drop in system sales in Germany during 2010, due to a temporary suspension of rebates, a number of firms in Germany declared bankruptcy and closed facilities.55 European installed system prices have not declined in the past 10 years, although tank and collector prices have

decreased slightly.56 By contrast, in Brazil the installation cost is typically only 10% of the total system price, reflecting the lower labor costs relative to the EU.57 Brazilian firms are emerging as major manufacturers of solar hot water systems. In 2010, Brazilian production of solar collectors reached almost 1 million m2, an increase of 20% over the previous year.58 In 2010, the industry consisted of 200 manufacturers and approximately 1,000 installers.59 In South Africa, following the doubling of the solar hot water subsidy in response to rising electricity rates, the market is booming and the industry has expanded as a result. Eskom, the South African national utility, recorded that 108 accredited suppliers, 245 registered distributors, and 124 registered independent installers participated in the incentive program during 2010, up from eight registered suppliers in 2008 when the subsidy scheme was first launched. The national association SESSA has grown from 200 to 500 corporate members, primarily installers, in two years.60