In its recently published Vital Signs analysis, the Worldwatch Institute reports that solar thermal heating capacity increased by 19 GW of thermal equivalent (GWth), reaching 147 GWth. This is the highest growth rate for over a decade and preliminary estimates for 2008 indicate a similar expansion.
The research institute has found that China continues to dominate, with the largest solar thermal heating market representing two thirds of global capacity. Despite a market downturn in 2007, China still accounted for 80% of newly installed systems in 2007. The Worldwatch Institute attributes Chinese dominance to a lack of access to natural gas in many homes, as well as to affordable prices. In Rizhao, for example, where about 99% of all households use solar water heating, the initial capital costs for solar water heaters are on a par with conventional electric systems, while lifecycle costs demonstrate annual savings of 3-6% of the average 2006 household income. The institute also acknowledges a boost in governmental support for research and development in the field.
Demand to rise in Europe
According to the Worldwatch Institute's analysis, Europe has bucked the trend, experiencing the first slowdown in the market in 2007. Nevertheless, preliminary figures for 2008 show a recovery, with "a strong rebound" in the largest market, Germany, and growing demand in the Mediterranean region. The EU's new Renewable Energy Directive, which includes heating and cooling for the first time, is also expected to provide a further boost for the industry.
Europe's advantage is that it has the most comprehensive portfolio of applications, comprising hot water and space heating for residential buildings and hotels, district heating, space cooling and industrial processes, the Worldwatch Institute argues.
The potential for emissions cuts from the buildings sector is substantial as it accounts for around 40% of the EU's final energy demand. As heating accounts for over two thirds of the energy used in buildings, the EU hopes to slash emissions considerably by replacing fossil fuels with renewable energy in heating.
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