Commercialization Strategies Shared

Solar energy applications have thus far captured only a tiny part of the energy market in IEA countries. This is true despite the fact that several solar technologies are currently cost-effective or are close to commercialization. To allow members to exchange experiences in the area of commercialization of solar energy and to identify both problems and successful approaches, the IEA SHC Executive Committee held a workshop on commercialization strategies in conjunction with its October 1994 meeting.

One of the main barriers to wider commercialization of solar energy is obviously the cost factor. Simply put, the cost of solar energy is often too high or the price of conventional fuels is too low, or both. To clarify where solar stands from an economic perspective and what the trends are, a survey was taken of the cost of energy from solar systems and from conventional energy. The table below shows that solar heating systems (mainly solar domestic hot water systems) are close to the price of electricity in many IEA countries, but that there is still a factor of 3 to 4 between the cost of solar and heating fuels. This finding may indicate a major potential for solar heating as a demand side measure among electric utilities.

Several commercialization case studies were presented at the workshop, a few of which are summarized briefly below.

Canada:
A new initiative has been launched for marketing solar DHW by utilities as part of their DSM approaches. Lowering the cost of solar systems is an important criterion for success, but joint government and utility cooperation could bring about a breakthrough. The market potential for solar DHW is seen as 100,000 systems by 2010.

The Netherlands:
An ambitious goal has been set to install some 300,000 solar DHW systems by the year 2020. A four-prong strategy is being utilized to achieve this goal: subsidies, R & D, market-development, and cooperation with utilities, which are all perceived as key factors for success. Joint financing schemes with utilities are being developed.

Austria:
Some 1,000,000 m2 of solar collectors have been installed to date. Key factors in the Austrian success have been the positive signals from the government in the form of market incentives and improved system quality and reliability. Austrian experience has shown that the customer is willing to pay more for solar energy than traditional energy if the quality is good.

Germany:
Solarthermie 2000, a large demonstration program, has been launched to increase confidence in solar heating and help bring down costs. Approximately 100 million DM have been allocated for the period 1993 to 2002 to support the installation and monitoring of about 100 large-scale solar heating plants. Most of these plants are located in the eastern part of Germany, where substitution of reewable energy systems can bring about improved air quality.

In his summary, the Chairman of the workshop, Prof. Peter Lund (Finland), suggested that the following commercialization strategies might prove to be successful in enlarging the market::

• Selling energy services rather than solar collectors.
• Positive signals from the government.
• More attention to quality to increase confidence in solar systems.
• New approaches to commercialization such as technology procurement and utility/industry agreements.

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