Today,
the markets for active solar systems in Northern Europe and North
America are mostly local. The systems are mainly manufactured in
the same country as they are sold, and they are mainly sold on an
individual basis by a local installer. The price of the systems
can vary substantially.
How
to reach price reductions
A large part of the total costs of an active solar system consists
of marketing expenses, as the systems will be sold one by one and
also because the market is so little. Today, many small manufacturers
have to meet the demands of a small market; therefore, they have
a higher production price per unit.
The
costs of solar water heating systems are often considered to be
the major barrier to the development of the solar heating market.
However it has been found that this barrier can be reduced through
bulk purchasing. In addition, two recent market studies (see ref 7,8) have shown that there are other barriers
which have to be recognized and which can be turned into market
opportunities. Collector costs today are partially influenced by
manufacturing techniques which are often small-scale and can benefit
from automated production. As the solar water heating market grows,
it is expected that the market will be dominated by rationalized
industrial manufacturers and small manufacturers will occupy niche
markets. This is expected to result in further cost reductions for
solar water heaters, which in turn will provide solar energy at
prices comparable with those of fossil fuels and well below the
cost of electricity in many of the IEA countries.
Since
solar installations are often characterized by relatively high investments
and low operating costs, it may be appropriate to evaluate the economics
on the basis of full financial analysis over the product life-cycle
rather than a simple investment break-even analysis. The life-cycle
of currently available solar systems approach 25 years. Even at
lower life-cycles of 10 years, today's solar heating costs in some
markets are already comparable with fossil fuels, whereas in other
countries the costs are up to twice as expensive, depending on the
climate, market structure, and taxes on fossil fuels.
One
important condition for lowering solar costs is international trading
(see ref 9). Market barriers need to be removed
and international standards and codes developed, helping to internationalize
and rationalize the trade in solar equipment.
CO2
Impact
The
amount of CO2 is decreased by the
use of solar heating. How much CO2
emission you avoid by using solar depends on the fuel you substitute.
In
Denmark, a solar heating plant in the countryside will typically
replace oil boilers, and that means that a 4 mē system used by 4
persons will save between 400-550 litres of oil per year, which
will reduce CO2 emissions by 1,5
tonnes per year.
If
you substitute for coal-fired electricity heat, you spare the environment
approximately 1 kg of CO2
for each kWh the solar heating system delivers!
Gas
is a far cleaner fuel than oil and especially coal. Substituting
for gas, the savings are about 0.25 kg/kWh.
References:
7.
Heimo Zinko, Johan Bjarklev and Peter Margen, "The market potential
for solar heating plants in some European countries". CEC APAS-RENA
Project CT 94-0057. ZW Energiteknik AB, Sweden, March 1996.
8.
Heimo Zinko, "Solar Heating in Northern and Central Europe
- The Solar Heating Market": CEC - THERMIE B; ZW Energiteknik
AB, June 1997, ZW - 97/07.
9.
Hans Westling, Promandat AB, "Co-operative Procurement - Market
Acceptance for Innovation Energy Efficient
Technologies". B1996:3 NUTEK/IEA, Stockholm, Sweden 1996.
