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Data submitted herein is intended for the sole use of the Client in evaluating IIEC’s offer and is considered proprietary to IIEC. Pages containing
this proprietary data are annotated with reference to this paragraph
SSmmaallll SSccaallee FFuunnddiinngg AAggrreeeemmeenntt ((SSSSFFAA))
SSoollaarr WWaatteerr HHeeaatteerr MMaarrkkeett AAsssseessssmmeenntt
BBaannggllaaddeesshh,, SSrrii LLaannkkaa,, TThhaaiillaanndd,, TThhee PPhhiilliippppiinneess,, VViieettnnaamm
Prepared for
United Nations Environment Programme (UNEP) 15 rue de Milan, F-75441, Paris CEDEX 09
France
by
International Institute for Energy Conservation - Asia 12th Floor, United Business Centre II Building, 591, Sukhumvit Road
Wattana, Bangkok 10110, THAILAND
August 2011
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA)
August 2011 i
CONTENTS
ABBREVIATIONS .................................................................................................................... 4
EXECUTIVE SUMMARY ............................................................................................................ 8
1 INTRODUCTION .................................................................................................... 11
1.1 Methodology ...................................................................................................... 13
2 OVERVIEW OF REGIONAL COUNTRIES .................................................................... 14
2.1 Bangladesh ....................................................................................................... 14
2.1.1 Electricity Scenario in Bangladesh ............................................................................................... 15
2.1.2 Bangladesh Climate ..................................................................................................................... 16
2.1.3 Solar Radiation in Bangladesh ..................................................................................................... 17
2.2 Sri Lanka ........................................................................................................... 18
2.2.1 Electricity Scenario in Sri Lanka ................................................................................................... 19
2.2.2 Sri Lanka Climate ......................................................................................................................... 20
2.2.3 Solar Radiation in Sri Lanka ......................................................................................................... 22
2.3 Thailand ............................................................................................................ 23
2.3.1 Electricity Scenario in Thailand .................................................................................................... 24
2.3.2 Thailand Climate ........................................................................................................................... 24
2.3.3 Solar Radiation in Thailand .......................................................................................................... 25
2.4 The Philippines .................................................................................................. 26
2.4.1 Electricity Scenario in the Philippines ........................................................................................... 28
2.4.2 Philippines Climate ....................................................................................................................... 29
2.4.3 Solar Radiation in the Philippines ................................................................................................. 30
2.5 Vietnam ............................................................................................................. 30
2.5.1 Electricity Scenario in Vietnam ..................................................................................................... 31
2.5.2 Vietnam Climate ........................................................................................................................... 33
2.5.3 Solar Radiation in Vietnam ........................................................................................................... 34
3 OVERVIEW OF SOLAR WATER HEATER (SWH) MARKET ......................................... 36
3.1 Bangladesh ....................................................................................................... 36
3.1.1 Installed Capacity ......................................................................................................................... 36
3.1.2 Supply Chain Mechanism ............................................................................................................. 37
3.1.3 Typical Investments Required for SWH ....................................................................................... 38
3.1.4 Comparing with Competing Energy Sources ............................................................................... 38
3.2 Sri Lanka ........................................................................................................... 39
3.2.1 Installed Capacity ......................................................................................................................... 39
3.2.2 Supply Chain Mechanism ............................................................................................................. 39
3.2.3 Typical Investments Required for SWH ....................................................................................... 40
3.2.4 Comparing with Competing Energy Sources ............................................................................... 41
3.3 Thailand ............................................................................................................ 42
3.3.1 Installed Capacity ......................................................................................................................... 43
3.3.2 Supply Chain Mechanism ............................................................................................................. 44
3.3.3 Typical Investments Required for SWH ....................................................................................... 47
3.3.4 Comparison with Competing Energy Sources .............................................................................. 48
3.4 The Philippines .................................................................................................. 49
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA)
August 2011 i i
3.4.1 Installed Capacity ......................................................................................................................... 49
3.4.2 Supply Chain Mechanism ............................................................................................................. 49
3.4.3 Typical Investments Required for SWH ....................................................................................... 51
3.5 Vietnam ............................................................................................................. 51
3.5.1 Installed Capacity ......................................................................................................................... 51
3.5.2 Supply Chain Mechanism ............................................................................................................. 51
3.5.3 Typical Investments Required for SWH ....................................................................................... 52
3.5.4 Comparison with Competing Energy Sources .............................................................................. 53
4 SOLAR WATER HEATERS – SYSTEM COMPONENTS, DESIGN & INSTALLATION ......... 55
4.1 Bangladesh ....................................................................................................... 55
4.2 Sri Lanka ........................................................................................................... 57
4.3 Thailand ............................................................................................................ 59
4.4 The Philippines .................................................................................................. 61
4.5 Vietnam ............................................................................................................. 63
5 ECONOMIC EVALUATION OF SWH APPLICATIONS .................................................. 66
6 NATIONAL PRODUCT STANDARDS FOR SWH ......................................................... 72
6.1 Need for Quality Products ................................................................................. 72
6.2 SWH Standards for Bangladesh ....................................................................... 73
6.3 SWH Standards for Sri Lanka ........................................................................... 73
6.4 SWH Standards for Thailand ............................................................................. 73
6.4.1 TIS 899 – 2532 (1989) applicable for industrial solar flat plate collectors .................................... 74
6.5 SWH Standards for The Philippines .................................................................. 86
6.5.1 PNS ISO 94 – 5: 2008 Solar heating “Domestic water heating systems” Part 5: System
performance characterization by means of whole-system tests and computer simulation .............................. 87
6.5.2 PNS ISO 9459 – 1: 2008 Solar heating “Domestic water heating systems” Part 1:
Performance rating procedure using indoor test methods ............................................................................... 88
6.6 SWH Standards for Vietnam ............................................................................. 89
6.7 Planning, Installation and Maintenance ............................................................. 90
6.7.1 Accreditation /Certification of Planners or Installers ..................................................................... 90
6.7.2 Commissioning & Certificate of Installation .................................................................................. 90
7 IN-COUNTRY INSTITUTIONAL AND POLICY FRAMEWORK FOR SWH........................... 91
7.1 Policy Interventions for SWH Systems .............................................................. 95
7.1.1 Bangladesh ................................................................................................................................... 95
7.1.2 Sri Lanka ....................................................................................................................................... 95
7.1.3 Thailand ........................................................................................................................................ 96
7.1.4 The Philippines ............................................................................................................................. 96
7.1.5 Vietnam ......................................................................................................................................... 96
7.2 In-country Testing Facilities, Accredited Test Laboratories and Certification .... 97
7.2.1 Bangladesh ................................................................................................................................... 97
7.2.2 Sri Lanka ....................................................................................................................................... 97
7.2.3 The Philippines ............................................................................................................................. 97
7.2.4 Thailand ........................................................................................................................................ 98
7.2.5 Accredited Test Laboratories, Product Certification ..................................................................... 99
8 SWH PROMOTIONAL MEASURES ........................................................................ 101
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA)
August 2011 i i i
8.1 Financial Measures and Incentives ................................................................. 101
8.1.1 Bangladesh ................................................................................................................................. 101
8.1.2 Sri Lanka ..................................................................................................................................... 101
8.1.3 Thailand ...................................................................................................................................... 101
8.1.4 The Philippines ........................................................................................................................... 102
8.1.5 Vietnam ....................................................................................................................................... 102
8.2 Marketing and Awareness Programs .............................................................. 103
8.2.1 Bangladesh ................................................................................................................................. 103
8.2.2 Sri Lanka ..................................................................................................................................... 103
8.2.3 Thailand ...................................................................................................................................... 103
8.2.4 The Philippines ........................................................................................................................... 104
8.2.5 Vietnam ....................................................................................................................................... 104
9 SOLAR WATER HEATERS – COUNTRY SUCCESSES .............................................. 105
9.1 Bangladesh ..................................................................................................... 105
9.2 Sri Lanka ......................................................................................................... 106
9.3 The Philippines ................................................................................................ 107
9.4 Thailand .......................................................................................................... 107
9.5 Vietnam ........................................................................................................... 109
10 BARRIERS ......................................................................................................... 112
10.1 Bangladesh ..................................................................................................... 112
10.2 Sri Lanka ......................................................................................................... 113
10.3 Thailand .......................................................................................................... 114
10.4 The Philippines ................................................................................................ 115
10.5 Vietnam ........................................................................................................... 116
11 RECOMMENDATIONS .......................................................................................... 118
11.1 Bangladesh ..................................................................................................... 127
11.2 Sri Lanka ......................................................................................................... 127
11.3 Thailand .......................................................................................................... 128
11.4 The Philippines ................................................................................................ 129
11.5 Vietnam ........................................................................................................... 130
ANNEXURE I ...................................................................................................................... 131
ANNEXURE II ..................................................................................................................... 135
ANNEXURE III .................................................................................................................... 149
ANNEXURE IV .................................................................................................................... 150
ANNEXURE V ..................................................................................................................... 156
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011
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ABBREVIATIONS
ADB Asian Development Bank
AIT Asian Institute of Technology
ANEC Affiliated Non-Conventional Energy Centre
ANSI American National Standards Institute
APEC Asia-Pacific Economic Cooperation
ASEAN Association of Southeast Asian Nations
ASQC American Society for Quality Control
AST Asian Institute of Technology
BCSIR Bangladesh Council of Scientific and Industrial Research
BIMSTEC Bay of Bengal Initiative for Multi Sectorial Technical and Economic
Cooperation
BPDB Bangladesh Power Development Board
BPS Bureau of Product Standards
BRAC Bangladesh Rural Advancement Committee
BSTI Bangladesh Standards and Testing Institute
BUET Bangladesh University of Engineering and Technology
CAGR Compounded Annual Growth Rate
CEB Ceylon Electricity Board
CFL Compact Fluorescent Lamp
CIA Central Intelligence Agency
CMES Centre for Mass Education in Science
CMU Chiang Mai University
CUET Chittagong University of Engineering and Technology
DEDE Department of Alternative Energy Development and Efficiency
DEDP Department of Energy Development and Promotion
DLC Direct Load Control
DoE Department of Energy
DOST Department of Science and Technology
DSM Demand Side Management
DU Dhaka University
EAS East Asia Summit
ECC Energy Conservation Centre
EE Energy Efficiency
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EGAT Electricity Generating Authority of Thailand
ESCO Energy Service Companies
ETC Evacuated Tube Collector
EU-SPF European Union – Small Project Facility
EVN Electricity of Vietnam
FPC Flat Plate Collector
FTL Fluorescent Tube Lamp
GEF Global Environment Facility
GHG Green House Gas
GI Galvanized Iron
GoB Government of Bangladesh
GTZ German Technical Corporation
HCMC Ho Chi Minh City
IEA International Energy Agency
IFRD Institute of Fuel Research & Development
IIEC International Institute for Energy Conservation
IMF International Monetary Fund
IPCC Intergovernmental Panel on Climate Change
IPP Independent Power Producers
IPSU Institution and Policy Support Unit
ISE Fraunhofer Institute for Solar Energy Systems
ISO International Standardization Organization
ITH Income Tax Holiday
JGSEE Joint Graduate School of Energy and Environment
KM Knowledge Management
KMUTT King Mongkut’s University of Technology Thonburi
KUET Khulna University of Engineering and Technology
LECO Lanka Electricity Company
LGED Local Government Engineering Department
LPG Liquefied Petroleum Gas
MoEF Ministry of Environment and Forest
MoIT Ministry of Industry and Trade
MPRMR Ministry of Power, Energy and Mineral Resources
NCED Non-Conventional Energy Division
NEP National Energy Policy
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
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NEPO National Energy Policy Office
NERD National Engineering Research and Development
NREB National Renewable Energy Board
NU Narasaun University
O&M Operation and Maintenance
PE Polyethylene
PNS Philippine National Standard
PVC Polyvinyl Chloride
QA Quality Assurance
R & D Research & Development
RE Renewable Energy
REAP Renewable Energy Association of the Philippines
REB Rural Electrification Board
REDA Renewable Energy Development Agency
REIN Renewable Energy Information Network
REMB Renewable Energy Management Bureau
REP Renewable Energy Policy
RERC Renewable Energy Research Centre
RET Renewable Energy Technologies
RREL Rahimafrooz Renewable Energy Limited
RUET Rajshahi University of Engineering and Technology
SAARC South Asian Association for Regional Cooperation
SEDA Sustainable Energy Development Agency
SEMP Sustainable Environmental Management Program
SERT School of Renewable Energy Technology
SGF Sustainable Guarantee Facility
SHS Solar Home Systems
SIDA Swedish International Development Cooperation Agency
SLSEA Sri Lanka Sustainable Energy Authority
SLSI Sri Lanka Standards Institute
SRE Sustainable Rural Energy
SRET School of Renewable Energy Technology
SSFA Small Scale Funding Agreement
STA Solar Thermal Association
SWERA Solar and Wind Energy Resource Assessment
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011
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SWH Solar Water Heating
TIS Thai Industry Standard
TISI Thai Industries Standard Institute
ToU Time of Use
TSTA Thai Solar Thermal Association
UNDP United Nations Development Programme
UNEP United Nations Environment Programme
UPSL University of the Philippines Solar Laboratory
VAT Value Added Tax
VNEEP Vietnam National Energy Efficiency Program
VSQI Vietnam Standards and Quality Institution
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EXECUTIVE SUMMARY
United Nations Development Programme (UNDP) and United Nations Environment
Programme (UNEP) have initiated Global Knowledge Management (KM) and Networking
activities within framework of its global project “Solar Water Heating (SWH) Market
Transformation and Strengthening Initiative”. International Institute for Energy Conservation
(IIEC) as a regional partner to the project is committed to the development of knowledge
products and services for SWH applications in five of South Asian and Southeast Asian
counties – Bangladesh, Sri Lanka, Thailand, The Philippines and Vietnam. The SSFA
contract included developing of three reports – Solar Water Heater Market Assessment of the
five countries, SWH – Study of Country Successes, Study of SWH Product Standards in five
countries. This is a consolidated version of the three Reports.
This report also presents a detailed discussion on solar water heaters – system components,
design and installation practices in the five countries along with life cycle cost evaluation. The
successful nationwide projects/initiatives that helped in catalysing the uptake of SWH
technology in each of the countries are discussed. This was studied for the second
deliverable under the SSFA contract.
The efforts of the regional countries in adoption of product standards for solar water heaters,
third party tests, test procedures, certification of solar water heaters are discussed. It also
presents efforts of several organizations working it these countries to improve quality of
installation and hot water servicing of the installed systems. The third deliverable under the
SSFA contract also included this information.
Bangladesh
Bangladesh with close proximity to Tropic of Cancer, receives an average solar radiation
between 4 and 6.6 kWh/m2/day. Being densely populated developing country with acute
electricity access to all and energy shortage issues, solar thermal applications especially
solar water heating could be good opportunity for the country. Though the government’s
current focus is on Solar Photovoltaic, several research and academic organizations in
Bangladesh realized the potential for solar water heating applications and are striving to
promote the technology. The technology has its origins in the country since late 1990s and
local manufacturing on commercial scale has been started since 2002. To say, SWH are
costlier in Bangladesh compared to neighbouring developing countries like India and are
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011
9
more economical in residential and commercial sector to replace use of kerosene and
electricity respectively.
Promotion of SWH was one of the focus areas in Bangladesh’s Renewable Energy Plan
(2008) and financial incentives were introduced to the local manufacturers of SWH products.
However, the technology is not popularized due to lack of proper marketing & awareness
activities and documentation and dissemination of successful installations.
Sri Lanka
Sri Lanka located near to Equator, receives mean solar radiation between 4.5 kWh/m2/day
and 6 kWh/m2/day. Solar water heating applications has its origins in the country since early
1970s when few SWH systems were imported into the country and after a decade local
manufacturing was started. The SWH systems are popular in high-end residential
consumers, hotels and tourism centres. Flat plate type collector systems are well known in
the country compared to evacuated tube type.
The Government’s focus on promotion of SWH systems in Sri Lanka is less; the till-day
market development can be attributed to the research institutions and SWH manufacturers.
The Philippines
The Philippines located near to Equator, receives mean solar radiation of 5 kWh/m2/day while
variation all over the country ranges between 3 and 7 kWh/m2/day. Solar energy for water
heating applications has its origins in the country since 1989-90 with studies focusing on
SWH applicability and research related to local manufacturing, but it is only after 2001-02
SWH installations grown in number after a few local manufacturers entering into the
business. To an extent, both flat plate and evacuated tube type collectors are equally
popular. Irrespective of type of collector, the initial cost of technology is very high and
financial incentives are provided to local manufacturers in the country.
The country does not have any national policies and regulations or product standards for
promotion of SWH systems. However, tax incentives are provided to the manufacturers and
importers of the units. Exclusive promotional projects/initiatives are missing in the
Philippines.
Thailand
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011
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Thailand lying between Equator and Tropic of cancer, receives an annual mean solar
radiation between 4.5 kWh/m2/day (winter) and 4.7 kWh/m2/day. Solar water heating
applications has its origins in the country since 1982 when the government installed few
systems for test purpose. The industry realized big growth in 1900s with as many as 12 firms
in the market and later during 1997 economic crisis many of the businesses closed down.
SWH industry regained its momentum after 2002. However, the SWH industry in Thailand is
severely hit by low quality products, improper installations and servicing with which the public
lost faith on prolonged use of the technology. The government responded to this by
introducing quality and performance standards on voluntary basis and training programs for
service providers. The SWH systems are affordable to industrial, commercial and high-end
residential customers because of high initial costs.
SWH promotional activities are on high with parallel activities by the government – training of
SWH service providers, financial incentive for integrated SWH systems. If the government’s
efforts continue along with proper marketing and awareness strategies, Thailand may
develop as a good market for SWH installations.
Vietnam
Vietnam located near to Tropic of cancer, receives an annual mean solar radiation between
3.7 kWh/m2/day and 5.9 kWh/m2/day. Solar water heating applications has its origins in the
country since early 1990s when high-end residential consumers imported SWH products
installing in their bungalows. The government started research on SWH applications in 1996
and a few systems were installed for test purpose and after 10 years, by 2006 about 3.8
million systems were installed throughout the country. The growth of SWH industry can be
attributed to combined effort of large number of imports (comparatively affordable evacuated
tube type systems) from neighbouring China, high costs of competing energy sources, the
government’s efforts through subsidy scheme, demand side management programs and
technical assistance or grants from donor agencies. SWH promotional activities are on high
with a national target to cover 1,760,000 m2 of collector area under SWH applications by
2015.
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011
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1 INTRODUCTION
Through the 1990s and beginning of 2000, the global solar thermal market has undergone a
favourable development with a steady annual growth. At the end of 2004, a total of 141
million square meters of collector area were installed in 41 countries studied in the
International Energy Agency (IEA) Market Review for 20061, which is expected to represent
about 85-90% of the solar thermal market worldwide. By using the conversion factor of 0.7
kWth/m2, as agreed to by solar thermal experts from seven countries at a meeting in 2004,
the total installed capacity was estimated at 98.4 GWth. The annual collector yield of all solar
thermal systems in the countries studied was estimated at 58,117 GWh and the annual
avoidance of GHG emissions 25.4 million tons of CO2.
Although strong market development has been evidenced in some Global Environment
Facility (GEF) program countries, notably in China and Turkey, in many others, solar water
heating is hardly utilized despite the most favourable climatic conditions. By any standards,
the global, economically feasible potential for increased use of solar thermal applications for
hot water preparation is huge and comparable to any other form of renewable energy the
GEF has supported during its operations. As demonstrated by the experiences in China, it is
a technology that can provide cost-effective energy solutions also to the lower income part of
the population and as further demonstrated, for instance, in Cyprus, Israel and Greece, can
become a mass product leading to permanent market shift at the national level for the benefit
of both the end users and the environment. There can also be other considerations to
stimulate solar water heating. In summary, it is an economic, commercially viable and
available technology, which due to the different market barriers, however, has not reached
the market penetration rate that it could reach on simply economic grounds.
With respect to the above discussion the GEF has mandated the United Nations
Development Programme (UNDP) and United Nations Environment Programme (UNEP) to
establish a project titled “Solar Water Heating (SWH) Market Transformation and
Strengthening Initiative” at a global level. The project consists of two components as follows:
• Component 1 - Global Knowledge Management (KM) and Networking: Effective
initiation and co-ordination of the country specific support needs and improved access of
1 W., Bergmann, I. & Faninger, G., 2006. Solar Heat Worldwide - Markets and Contribution to the
Energy Supply 2004, Solar Heating & Cooling Programme (SHC), International Energy Agency
(IEA). Available at: http://www.iea.org/impagr/cip/pdf/SHCWorldwide2006.pdf [Accessed August
12, 2010].
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011
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national experts to state of the art information, technical backstopping, training and
international experiences and lessons learnt.
• Component 2 - UNDP Country Programs: The basic conditions for the development of
a SWH market on both the supply and demand side established, conducive to the overall,
global market transformation goals of the project.
International Institute for Energy Conservation (IIEC) as a regional partner to the program is
committed to generate knowledge products and services to ensure that developmental
experiences and benefits of knowledge can be effectively disseminated to other regional
countries.
The report was prepared within the framework of “Solar Water Heating Market
Transformation and Strengthening Initiative” under UNEP’s Small Scale Funding Agreement
(SSFA). The objective of the report is to provide the existing status and overview of SWH
industry in the focused regional countries – Bangladesh, Sri Lanka, The Philippines,
Thailand, Vietnam with respect to the solar energy availability and applicability for water
heating applications, achieved or installed capacities, supply chain mechanisms,
investments, and supportive institutional and policy frameworks, solar water heaters –
system components, design and installation practices in the five countries along with life
cycle cost evaluation, in adoption of product standards for solar water heaters, third party
tests, test procedures and certification of solar water heaters.
Section 2 of the report gives a simple country overview on electricity scenario, geographic,
climate and solar radiation analysis. Section 3 presents overview of SWH market in the
countries with details such as installed capacities, supply chain mechanism, typical
investments required; Section 4 discusses SWH system components, design & installation
procedures in the five countries; Section 5 presents economic evaluation of SWH with help of
case studies; Section 6 discusses need for quality assurance of SWH systems, product
standards available, tests for fabrication, installation etc.; Section 7 discusses institutional
and policy framework for SWH (policy interventions, testing facilities and certifications
available in the five countries; Section 8 outlines SWH programs undertaken in the past or
present, marketing and financial measures that helped in the uptake of existing installations.
Section 9 gives an overview of successful programs/initiatives undertaken for promotion of
SWH in the five countries. In section 10 the barriers to the use of solar water heaters are
discussed and section 11 lists the recommendations to overcome the barriers listed in
section 10 and mentioned in other parts of this Report.
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011
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1.1 Methodology
The analysis in this report is based on compilation of secondary data readily available from
various web sources, one-to-one communication with industry experts in the countries,
referring product standards developed by the Regional Standard Bureaus in these countries,
discussions or email exchanges with industry experts, SWH manufacturers, primary data
gathering from questionnaires sent out to SWH manufacturers, organizations endeavouring
to promote SWH and local associations through IIEC regional offices. The details and
potential sources of information are cited in respective sections of the report. The value of
this report lies in its bringing together data from many sources which is extremely difficult to
obtain. In cases where sufficient data is unavailable either in the form of secondary data or
quick primary data collection; further detailed studies are recommended and are not covered
under the current SSFA contract.
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Small Scale Funding Agreement (SSFA) August 2011 14
Figure 1 – Map of Bangladesh
2 OVERVIEW OF REGIONAL COUNTRIES
2.1 Bangladesh
Bangladesh, officially the People’s
Republic of Bangladesh is a South
Asian country located between 20° 34’
and 26° 38’ North latitude and 88° 01’
and 92° 41’ East longitude. The capital
city of Bangladesh is Dhaka.
Bangladesh was a part of the British
Indian province till 1947, which then
was separated and formed a part of
Pakistan called ‘East Pakistan’. It
emerged as an independent and
sovereign country in 1971, currently
practicing democratic parliamentary
government. It is bordered by India on
North, West and a part of East, Bay of
Bengal on South and Myanmar on
South-east.
Bangladesh is one of the largest deltas of the world with a total area of 147,570 km2. It is
covered with a network of rivers and canals from Ganges-Brahmaputra emptying into
Bay of Bengal. It is the seventh most populous country with population of 142 million.
Bangladesh is among the top ten densely populated countries of the world added with a
high poverty rate. Bangladesh has an agrarian economy with more than 75% of the
population living in rural areas. The country is an active participator in United Nations
(UN) activities and is also a member of the Commonwealth of Nations, South Asian
Association for Regional Cooperation (SAARC) and Bay of Bengal Initiative for Multi
Sectorial Technical and Economic Cooperation (BIMSTEC).
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Small Scale Funding Agreement (SSFA) August 2011 15
2.1.1 Electricity Scenario in Bangladesh
In Bangladesh, only 47%2 of total population has access to electricity (year 2008-09) with
lot many reliable and quality power issues. In FY 2009-10 the total generation capacity
was 5, 376 MW (up to May 2010) including 3,331 MW in public sector and 2045 MW in
private sector3. About 85% of electricity generation is from gas based power plants. Very
old power plants and shortage of gas supply are the main reasons for current energy
crisis in the country and access of electricity to all is still a far dream. The end-use
consumer categories and consumption pattern during 2004-05 is charted below figure 2.
During 2008-09, against forecasted demand of 6,066 MW, the maximum demand served
was 4,162 MW, with demand deficit of about 30%. Load shedding to a percentage of
30.49% of maximum demand was imposed on 351 days during the year. Though
Bangladesh is rich with in-land and offshore gas reserves, due to high risk & huge
investment, there was no noticeable exploration during last decade, which has affected
gas based power generation showing increasing trend for demand deficit.
2 Annual Report: 2008-2009; Bangladesh Power Development Board, Bangladesh Power
Development Board. Available at: http://www.bpdb.gov.bd/download/Annual%20Report-
10.pdf.
3 “MINISTRY OF POWER, ENERGY & MINERAL RESOURCES”
Figure 2 – End-use electricity consumption during 2004-05
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Small Scale Funding Agreement (SSFA) August 2011 16
Policy makers started looking at other face of demand deficit to tackle it from demand-
side by various measures such as - encouraging irrigation during off-peak hours,
enhancing consumer awareness of electricity conservation during peak hours and
undertaking a demand-side management programme that encourages the use of
energy-efficient equipment. In the last few years it was estimated that 400 MW irrigation
load was shifted from peak hour. Further initiatives include requesting industries and
commercial customers to use their own captive generation and not to operate during
peak hours, whenever possible, encouraging commercial establishments to operate only
during daylight hours and forming crisis management committees to face emergencies
and implement demand-side management measures in their area. In addition to the
above measures, time-of-day, peak and off-peak tariff rate structures are employed to all
consumer categories except agricultural and residential consumers. Off-peak
consumptions are encouraged by means of a discount in the range of 15-47% over flat-
rate tariff, whereas peak consumptions are penalized by an imposing a higher tariff in the
range of 40-95% over flat-rate tariff.
2.1.2 Bangladesh Climate
Straddling the Tropic of Cancer, Bangladesh has a subtropical monsoonal climate
characterized by heavy seasonal rainfall, moderately warm temperatures, and high
humidity. Natural calamities, such as floods, tropical cyclones, tornadoes, and tidal bores
affect the country almost every year. Historically Bangladesh is affected by major
cyclones about 16 times a decade. About 230 rivers and its tributaries cover about 8% of
Bangladesh land along with principal rivers namely Ganges, Meghna, Jamuna,
Brahmaputra, Teesta, Surma and Karnaphuli. The Intergovernmental Panel on Climate
Change's (IPCC) 2007 report estimated that a one-meter rise in the sea level due to
Global Warming could sink nearly one fifth of Bangladesh's land mass and displace 20
million people.
Three seasons are generally recognized in the country: a hot, muggy summer from
March to May; a hot, humid and rainy monsoon season from June to November; and a
warm-hot, dry winter from December to February. The relative humidity ranges from 73%
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Small Scale Funding Agreement (SSFA) August 2011 17
during winter to 86-88% during monsoon4. The seasonal variations in temperature and
average rainfall are shown in Figure 3.
0
100
200
300
400
500
600
0
5
10
15
20
25
30
35
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ra
infa
ll i
n m
m
Te
mp
era
ture
in C
Average rainfall (mm) Max. temperature (C) Min. temperature (C)
2.1.3 Solar Radiation in Bangladesh
The average solar radiation in the country varies between 4 and 6.5 kWh/m2/day, with
maximum and minimum radiation available in the months of March-April and December-
January respectively6. The average solar irradiance and its monthly variation in four
major cities of Bangladesh are charted in Figure 4 below.
4 2009. Statistical Pocket Book of Bangladesh 2008, Bangladesh: Bangladesh Bureau of
Statistics, Ministry of Planning, Bangladesh. Available at:
http://www.bbs.gov.bd/dataindex/pby/pk_book_08.pdf [Accessed August 11, 2010]. 5 Climate of Bangladesh, Bangladesh Meteorological Department. Available at: http://www.bmd.gov.bd/Document/climateofbangladesh.doc [Accessed August 13, 2010]. 6 Chaki, C., Use of Solar Energy: Bangladesh Context - Experiences of Grameen Shakti.
Available at: http://www.pksf-bd.org/seminar_fair08/Seminar_day2/GS%20Chitta%20Ranjan%20Chaki.pdf.
Figure 3 – Seasonal variations in temperature and rainfall in Bangladesh5
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 18
0
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2
3
4
5
6
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Irra
dia
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in k
Wh
/m2/d
ay
Tem
pe
ratu
re in
C
Solar Irradiance in Dhaka (Co-ordinates:23.70 N, 90.40 E) Relative Humidity range: 49 - 86 %
Temperature Global Horizontal Irradiance (GHI) Latitude Tilt Irradiance (TILT)
0
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Solar Irradiance in Chittagong (Co-ordinates: 22.30 N, 91.810 E)Relative Humidity range: 55 - 86 %
Temperature Global Horizontal Irradiance (GHI) Latitude Tilt Irradiance (TILT)
0
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Solar Irradiance in Khulna (Co-ordinates: 22.80 N, 89.550 E) Relative Humidity range: 51 - 87 %
Temperature Global Horizontal Irradiance (GHI) Latitude Tilt Irradiance (TILT)
0
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Solar Irradiance in Rangpur (Co-ordinates:24.750 N, 89.240 E)Relative Humidity range: 48 - 86 %
Temperature Global Horizontal Irradiance (GHI) Latitude Tilt Irradiance (TILT)
2.2 Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is an island country in
South Asia located about 31 kilo meters off the southern coast of India. Sri Lanka Lies
between 5° - 10° of North Latitude and 80° - 82° of East Longitude. Sri Lanka obtained
political independence from the British in 1948 under the name “Dominion of Ceylon”
which was changed to Sri Lanka in 1978. The island lies in the Indian Ocean, to the
Southwest of Bay of Bengal. It is separated from the Indian subcontinent by the Gulf of
Mannar and the Palk Straits.
Sri Lanka has a total area of 65,610 km2 with a coastline of about 1,340 km long. Its
terrain is mostly low, flat to rolling plain, with mountains in the south-central interior. The
natural beauty of Sri Lanka's tropical forests, beaches and landscape, as well as its rich
Figure 4 – Solar irradiance in four major cities of Bangladesh
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 19
Figure 5 – Map of Sri Lanka
cultural heritage, make it a world famous tourist destination. It was ranked the fifty fifth
with a population of about 21 million by the Central Intelligence Agency7 (CIA).
Sri Lanka is a member of the Commonwealth, the South Asian Association for Regional
Cooperation (SAARC), the World Bank, International Monetary Fund (IMF), Asian
Development Bank (ADB), and the Colombo Plan.
2.2.1 Electricity Scenario in Sri Lanka
The national electrification level in Sri Lanka
is close to 80% by the end of year 2007. Grid
connected generation capacity in FY 2006-07
is 2435MW and electricity generated
amounted to 9,901 GWh. About 60% of the
generation was from oil burning thermal
power plants, close to 40% is from hydro
power and share of electricity generation from
non-conventional sources is minimal. Ceylon
Electricity Board (CEB), eight Independent
Power Producers and over fifty privately-
owned renewable energy based small power
producers are responsible for generation of
electricity in the country while CEB and Lanka
Electricity Company (LECO) jointly distribute
electricity. The annual increase in the
electricity consumption in 2007 was found to
be 5% compared to 2006. The consumer profile and consumption during 2009 is charted
below figure 6. Recently, the cost of power generation has risen to unbearable
proportions mainly due to the inadequacy of water resources used for power generation
and price hike of other principal mediums of electricity generation. More use of non-
conventional energy sources (to meet about 10% of country’s total electricity generation)
and efficient use of energy have been identified as the key to counter the increase in
electricity demand and cost of power generation.
7 CIA - The World Fact book. Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/ce.html [Accessed August 20, 2010].
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 20
Some of the best practices in Sri Lanka towards energy conservation and energy
efficiency on demand-side includes – Energy labelling program for ensuring high levels
of electrical appliances; Sustainable guarantee facility (SGF) for providing technical and
financial guarantees to energy efficiency projects developed by Energy Service
Companies (ESCOs); awareness programs for general public.
2.2.2 Sri Lanka Climate
With the latitudinal position between 5-10° North latitude, Sri Lanka experiences a warm
climate, moderated by ocean winds and considerable moisture. The mean temperature
ranges from a low of 15.8°C in the Central Highlands (where frost may occur for several
days in the winter) to a high of 29°C on the northeast coast (where temperatures may
reach 37°C). The average yearly temperature for the country as a whole ranges from 26°
C to 28° C. January is the coolest month and May the hottest period, precedes the
summer monsoon rains.
Sri Lanka receives rainfall throughout the year in some or the other parts of the country
due to monsoon winds of Indian Ocean and Bay of Bengal. Four seasons are generally
identified in the country: Mid-May to October; October to November; December to March
and March to Mid-May. Typical rainfall characteristics during each of the seasons are
tabulated below in Table 1.
Figure 6 – Sector-wise electricity consumption during 2009
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 21
Season Characteristics Rainfall receiving areas
Mid-May to
October
Winds from Southwest brings moisture
from the Indian Ocean
• Mountain slopes of
Central Highlands
• Southwest region
October to
November
Periodic violent winds and tropical
cyclones
• Southwest
• Northeast
• Eastern
December to
March
Winds from Northeast brings moisture
from the Bay of Bengal
• North-eastern slopes of
mountains
March to Mid-
May
Variable winds • Evening thundershowers
in the island
Relative humidity is typically higher in the southwest and mountainous areas and also
depends on the seasonal patterns of rainfall. The average annual relative humidity of the
country is 79.8% and average monthly relative humidity ranges from 75% in January to
83% in October.
The variations in temperature and rainfall in the country are shown in Figure 7.
8 Source: Climate in Sri Lanka - Department of Meteorology - Sri Lanka. Available at:
http://www.meteo.gov.lk/Non_%20Up_Date/pages/climateinsl.htm [Accessed August 25,
2010]
Table 1 – Seasonal rainfall characteristics in Sri Lanka8
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0
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Average rainfall (mm) Max. temperature (C) Min. temperature (C)
2.2.3 Solar Radiation in Sri Lanka
Sri Lanka lies within the equatorial belt, a region where substantial solar energy
resources exist throughout much of the year in adequate quantities. The seasonal
variations in the solar resource potential are shown in Table 2.
Season Solar resource potential (kWh/m2/day)
Flat plate tilted at latitude Direct normal
Mid-May to October 4.5 – 5.5 2.5 – 4.5
October to November 4.5 – 6.0 3.0 – 4.5
December to March 5.0 – 6.0 3.0 – 5.5
March to Mid-May 5.0 – 6.5 3.5 – 5.5
9 Source: Sri Lanka Climate, Temperature, Average Weather History, Rainfall/ Precipitation, Sunshine. Available at: http://www.climatetemp.info/sri-lanka/ [Accessed August 25, 2010]. 10
Renne, D. et al., 2003. Solar Resource Assessment for Sri Lanka and Maldives, National
Renewable Energy Lab., Golden, CO (US). Available at:
http://www.nrel.gov/docs/fy03osti/34645.pdf.
Figure 7 – Monthly variations in temperature and rainfall in Sri Lanka9
Table 2 – Seasonal variations in solar resource potential in the country10
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 23
From the above table, the average annual solar resource potential of the country ranges
from 4.5 to 6 kWh/m2/day for flat plate type collectors tilted at latitude. The highest
resources are in the northern and southern regions, and the lowest resources are in the
interior hill country. The seasonal variations in solar resources are location specific
based on the change in wind flow directions and storm patterns between the southwest
and the northeast monsoons. During the southwest monsoon (Mid-May to October), with
airflow generally from the southwest to the northeast, the lee side of the mountains (the
northeast portion of the country) shows quite high solar resources. During the northeast
monsoon (December to March), the southern and western portions of the country show
higher resources. However, the highest resources occur during the hot dry period from
March and April when the transition between the northeast and the southwest monsoon
occurs.
2.3 Thailand
Thailand, officially the Kingdom of Thailand is a country in the heart of Southeast Asia,
well known for its record as ‘the only Southeast Asian country that has never been
colonized’. Thailand lies between 5.6° and 20.44° North Latitude and 97.36° and 105.63°
East Longitude. The country is bordered to the North by Myanmar and Laos, to the East
by Laos and Cambodia, to the West by the Andaman Sea and Myanmar and to the
South by the Gulf of Thailand and Malaysia.
Thailand has a total area of 513,000 km2 with a coastline of about 3,219 km long. The
country’s geographical terrain is very distinct, with mountainous ranges towards the
North, plateau region towards Northeast and flat river valley in the centre of the country.
It was ranked the twentieth most populous country in the world by the Central
Intelligence Agency11 (CIA) with a population of about 65 million.
Thailand fully participates and is a member of several international and regional
organizations. It is an active member of the Association of South East Asian Nations
(ASEAN).
11 CIA - The World Fact book. Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/th.html [Accessed September 2, 2010].
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 24
2.3.1 Electricity Scenario in Thailand
As of December 2008, the total installed capacity in the country is 29,140 MW,
comprising about 49% from Electricity Generating Authority of Thailand’s (EGAT) power
plants, 48.8% from domestic private power producers
(IPPs) and small portion of 2.2% from neighbouring
country power purchases. About 73% of the electricity is
generated from oil and gas based power plants, 21%
from coal based power plants and about 6% from
renewable energy technologies.
2.3.2 Thailand Climate
Thailand experiences a tropical climate, characterized by
considerable monsoon. The average temperature for the
country is 28°C with April (35°C) and January (20°C)
being the hottest and coldest month in a year.
Thailand receives an average of 1492 mm of rainfall per
year mainly during two seasons: a rainy, warm and
cloudy Southwest monsoon from mid-May to September;
a dry, cool Northeast monsoon from November to mid-
March.
The monthly variations in temperature and rainfall in the
country are shown in Figure 9.
Figure 8 – Map of Thailand
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Small Scale Funding Agreement (SSFA) August 2011 25
0
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Ra
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in
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Average rainfall (mm) Max. temperature (C) Min. temperature (C)
Relative humidity is typically higher in the southern areas and the average relative
humidity of the country is 79.9%. The average monthly relative humidity ranges from
74% in January to 85% in October.
2.3.3 Solar Radiation in Thailand
Thailand has an annual mean daily solar radiation between 4.5 kWh/m2/day (winter) and
4.7 kWh/m2/day (summer), which is higher than the economic profitability figures for
proper functioning of solar thermal installations. The seasonal fluctuations are estimated
with in ± 20% of the average value. The hourly and daily variations in the solar radiation
in four major cities of Thailand are shown in Figure 10.
Bangkok hourly global radiation
0.00
0.50
1.00
1.50
2.00
2.50
3.00
6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00
hour
MJ/m2-hr
(a) Bangkok hourly global radiation
Bangkok Daily global radiation
15.00
16.00
17.00
18.00
19.00
20.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MJ/m2
(b) Bangkok daily global radiation
12 Source: Sri Lanka Climate, Temperature, Average Weather History, Rainfall/ Precipitation, Sunshine. Available at: http://www.climatetemp.info/thailand/ [Accessed September 03, 2010].
Figure 9 – Monthly variations in temperature and rainfall in Thailand12
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 26
Phuket hourly global radiation
0.00
0.50
1.00
1.50
2.00
2.50
3.00
6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00
Hour
MJ/m2-hr
(c) Phuket hourly global radiation
Phuket daily global radiation
16.00
17.00
18.00
19.00
20.00
21.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MJ/m2
(d) Phuket daily global radiation
Chiang Mai hourly global radiation
0.00
0.50
1.00
1.50
2.00
2.50
3.00
6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00
hour
MJ/m2-hr
(e) Chiang Mai global radiation
Chiang Mai daily global radiation
0.00
5.00
10.00
15.00
20.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MJ/m2
(f) Chiang Mai daily global radiation
Khon Kaen hourly global radiation
0.00
0.50
1.00
1.50
2.00
2.50
3.00
6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00
hour
MJ/m2-hr
(g) Khon Kaen hourly global radiation
Khon Kaen Daily global radiation
0.00
5.00
10.00
15.00
20.00
25.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MJ/m2
(h) Khon Kaen daily global radiation
2.4 The Philippines
13 Soltherm Thailand project report funded by EU-Thailand Economic Cooperation Small Project
Facility (EU-SPF)
Figure 10 – Solar radiation in Bangkok, Phuket, Chiang Mai and Khon Kaen13
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 27
Figure 11 – Map of the Philippines
The Philippines, officially the Republic of Philippines is a country in Southeast Asia in
western Pacific Ocean. The country is an archipelago consisting of 7,107 islands with a
land area of about 300,000 km2. Luzon and Mindanao are the largest islands and
comprise roughly 66% of the country's area.
The Philippines lies between 116° 40', and
126° 34' East longitude and 4° 40' and
21° 10' North latitude. The country is
bordered to the East by the Philippine Sea,
to the West by the South China Sea, to the
South by the Celebes Sea and Taiwan is
located a few hundred kilometres directly to
the North.
The country’s coastal line is about 36,289
km, the 5th longest coastal line in the world.
The country’s geographical terrain is mostly
mountainous with narrow to extensive
coastal lowlands; some of the mountains
are volcanic in origin too. Situated on the
western fringes of the Pacific Ring of Fire,
the country experiences frequent seismic
quakes. It was ranked the twelfth in the
world with a population of about 97 million
by the Central Intelligence Agency14 (CIA).
The Philippines is a member of several
international groups, including East Asia
Summit (EAS), the Asia-Pacific Economic
Cooperation (APEC), Association of
Southeast Asian Nations (ASEAN), the
Latin Union, and observer status in Organization of Islamic Conference. The Asian
Development Bank (ADB) is headquartered in Manila, the national capital of the
Philippines.
14 CIA - The World Fact book. Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html [Accessed September 29, 2010].
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 28
2.4.1 Electricity Scenario in the Philippines
In the Philippines, the national electricity access level reached to 94.58% by the end of
November 200615. As of 2009, the total installed capacity is 15,610 MW and the sources
of electricity generation are also diversified. During 2000-2009, the average annual
increase in electricity demand was recorded at 3.2%, and the country being an
industrialized one demand escalation will be more in future. Of the total electricity
generated about 34% is consumed in each of residential and industrial sector, while
about 29% is consumed in commercial sector and rest of 3% in miscellaneous activities.
Electricity generation and consumption mix in 2009 is charted below.
Coal based, natural gas and hydro generation capacities are almost constant in the past
5-6 years, while oil based generation is on decrease. The Department of Energy (DoE),
Government of the Philippines has started its efforts promoting energy conservation,
energy efficiency, alternative fuels and demand side management in the country targeted
to avoid 50.9 million tons of CO2 during 2005-2014. The strategies to achieve the goal
include: aggressive promotion of energy conservation and energy efficient technology
both for the consumer and power producer, education and communication campaigns;
intensify collaboration effort with the private sector in implementing energy efficiency
programs through voluntary agreements; implementation and expansion of the appliance
and equipment labelling and standards program; the use of alternative fuel to reduce
dependence on imported oil; time of use tariff rate structure and periodic program
15 Expanded Rural Electrification. Available at: http://www.doe.gov.ph/EP/ER_status.htm
[Accessed September 30, 2010].
Figure 12 - Electricity generation by source of fuel and electricity consumption by sector in 2009
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 29
monitoring and evaluation to assess the effectiveness of the energy efficiency and
conservation plan.
2.4.2 Philippines Climate
The Philippines has a tropical maritime climate and is usually hot and humid. The two
seasons in a year are identified as: dry season or summer (cool dry: December to
February & hot dry: March to May); rainy season (from June to November). Most of the
rainfall is experienced during the southwest monsoon (from June to November), and a
little during the northeast monsoon characterized by dry winds (from December to April).
The average temperature for the country is 27.7° C with May (34°C) and January &
February (22°C) being the hottest and coldest months in a year. The country receives an
average of 2061 mm of rainfall per year.
The variations in temperature and rainfall in the country are shown in Figure 13.
0
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150
200
250
300
350
400
450
500
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Average rainfall (mm) Max. temperature (C) Min. temperature (C)
The elevations above sea level have significant effect on the temperature and relative
humidity. The average monthly relative humidity ranges from 64% in April to 82% in
August-September.
16 Source: Sri Lanka Climate, Temperature, Average Weather History, Rainfall/ Precipitation, Sunshine. Available at: http://www.climatetemp.info/philippines/ [Accessed September 30, 2010].
Figure 13 – Monthly variations in temperature and rainfall in the Philippines16
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 30
2.4.3 Solar Radiation in the Philippines
The Philippines has an annual mean daily solar radiation of 5 kWh/m2/day, and by virtue
of its location, the Philippines has radiation levels suitable for solar energy applications.
The national minimum and maximum solar radiation observed throughout a year is
charted in Figure 14.
0
1
2
3
4
5
6
7
8
0
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2
3
4
5
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecS
ola
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ad
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Wh
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So
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kW
h/
m2
/d
ay
)
Min & Max Solar Radiation (kWh/m2/day)
2.5 Vietnam
Vietnam, officially the Socialist Republic of Vietnam is the easternmost country on the
Indochina Peninsula in Southeast Asia. Vietnam lies between 102o08’ and 109°28’ East
longitude and 8°02’ and 23°23’ North latitude. The country is bordered to the North by
the People’s Republic of China, to the Northwest by Laos, to the Southwest by
Cambodia and to the East by South China Sea. Hanoi is the capital city of Vietnam and
Ho Chi Minh City is the largest city in the country.
Between the geographical coordinates, the country covers an area of 329,560 square
kilometres with a population of about 86 million ranking 13th most populous country in the
world. The country’s mainland coastal line is about 3,444 km excluding islands. The S
17
2000. Assessment of Solar Resources in the Philippines, National Renewable Energy
Laboratory.
Figure 14 – Average solar radiation in the Philippines17
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Small Scale Funding Agreement (SSFA) August 2011 31
Figure 15 – Map of Vietnam
shaped country can be geographically distinguished in to three regions – north, central
and south Vietnam. The north region has mountains, the Cao Bang and Vinh Yen plains,
the Red River delta and the Halong bay. In the Central Vietnam lie plateaus, beautiful
beaches, amazing lagoons and white sandy beaches. In the south lies the fertile Mekong
River Delta.
Vietnam gained independence from France on 2
September 1945, leaving the nation politically into
two countries and since 1975, when North
Vietnam won the Vietnam War the country was re-
united. Vietnam, a country shrouded in wars,
arms, and political tensions is today featured
among the “Next Eleven” countries recording the
fastest growth rate during last decade in Southeast
Asia and is a popular tourist destination.
Historically, Vietnam has been an agricultural
civilization based on wet rice cultivating. The
Vietnam War destroyed much of the country's
economy. Upon taking power, the Government
created a planned economy for the nation, also
developed trade and foreign relations with many
countries. Vietnam is a member of World Trade
Organization since November 2006 and its chief
trading partners include China, Japan, and
Australia, Association of Southeast Asian Nations
(ASEAN) countries, the U.S. and Western
European countries.
2.5.1 Electricity Scenario in Vietnam
Electricity access has increased dramatically in Vietnam, from 51% of households’
access to electricity in 1995 to around 97% in 2009. But rural areas still receive poor
service quality, with poor reliability and low voltage. Rural electricity consumption is only
about 15% of country’s total electricity consumption. As of 2009, the total available
installed capacity is 16,813 MW which generated about 90,000 GWh. The total
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 32
generation of the country in 2009 by source of fuel is charted in figure 16. During 2005-
2010, the average annual increase in electricity demand was recorded at 16%. During
2010-2020, Compounded Annual Growth Rate (CAGR) of electricity is estimated at 10%
due to expected commercial sector growth, urbanization and elevated living standards.
35%
16%
39%
3%4%3%
Hydro power Coal-fired
Gas-oil combined cycle Oil fired
Imports Small hydro & renewable
In 1997, the country’s electricity utility, Electricity of Vietnam (EVN) with assistance from
the World Bank has commissioned “Demand Side Management (DSM) Assessment for
Vietnam” study to determine the potential for DSM in meeting the country’s future power
resource requirements. The DSM Assessment concluded that DSM had a potentially
significant role to play in managing the growth of electricity demand in Vietnam and
identified important opportunities for cost-effective electricity savings in a number of
sectors and end-use applications. The main components of the EVN DSM initiative are:
(a) promotion of compact fluorescent lamps (CFLs); (b) transformation of fluorescent
tube lamp (FTL) market to efficient, “thin-tube” (T5) lamps; (c) an expansion of the time
of use (ToU) metering; (d) a pilot direct load control (DLC) program; (e) and supporting
programs. The supporting programs include load research activities; a study of the DSM
Figure 16 – Vietnam total electricity generation by source (2009)
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Small Scale Funding Agreement (SSFA) August 2011 33
regulatory framework and business opportunities; DSM screening and implementation of
pilot programs; and a consultancy on program monitoring & evaluation.
2.5.2 Vietnam Climate
Vietnam's climate is as complex as its topography. Although the country lies entirely
within the tropics, its diverse range of latitude, altitude, and weather patterns produces
enormous climatic variation. North Vietnam (resembling China) has two basic seasons: a
cold, humid winter (from November to April); and a warm, wet summer (for rest of the
year). In this region, summer temperatures average around 22°C, with occasional
typhoons. South Vietnam is generally warm, the hottest months being March through
May (temperatures around 30°C). This is the dry season in the south, followed by the
April-October monsoon season. In Central Vietnam, provinces towards North share
climate of North Vietnam and climate of provinces that are towards south have climate
resembling to South Vietnam. The average temperature for the country is 24.1° C with
June & July (33°C) and January (13°C) being the hottest and coldest months in a year.
The country receives an average of 1680 mm of rainfall per year.
The variations in temperature and rainfall in the country are shown in Figure 17.
0
50
100
150
200
250
300
350
400
0
5
10
15
20
25
30
35
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ra
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era
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in C
Average rainfall (mm) Max. temperature (C) Min. temperature (C)
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Vietnam receives tropical and subtropical monsoon type rain. The relative humidity is
high throughout the year in most parts of the country, the average annual relative
humidity being 71.1% and average monthly relative humidity ranging from 67% in
December to 76% in March.
2.5.3 Solar Radiation in Vietnam
Annual solar radiation in Vietnam is in the range of 3.69 - 5.9 kWh/m2, with a yearly
average sunshine duration of 1800-2100 hours in the North and 2000-2600 hours in the
South. Though solar radiation is observed throughout the country, due to frequent rainy
and cloudy weather conditions in North Vietnam, the best climatic conditions for the
utilization of solar energy in Vietnam are found in the southern region.
Average monthly solar radiation in four major cities of Vietnam is charted in Figure 18.
18 Source: Vietnam Climate, Temperature, Average Weather History, Rainfall/ Precipitation, Sunshine. Available at: http://www.climatetemp.info/vietnam/ [Accessed November 11, 2010].
Figure 17 – Monthly variations in temperature and rainfall in Vietnam18
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19 Hiep, L.C., 2009. Solar Energy and Solar Photovoltaic’ s in Vietnam. Available at:
http://www.berlin.de/imperia/md/content/asienpazifikforum/apw/apw2009/praesentationen/p
rof._le_vietnam.10.2009.ppt.
Figure 18 - Mean solar radiation in Hanoi, Danang, Nha Trang and Ho Chi Minh City19
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
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3 OVERVIEW OF SOLAR WATER HEATER
(SWH) MARKET
3.1 Bangladesh
Solar water heating technology was known in Bangladesh since 1990s. The initial efforts
were targeted towards studies on suitability of SWH technology to the country’s climatic
conditions. The National Energy Policy (NEP) 1995 has got guidelines to develop
Renewable Energy Technologies and the draft Renewable Energy Policy (REP) was
submitted to Government of Bangladesh (GoB) in 2002. Under the guidelines of REP
2002, solar water heaters are exempted from custom duties and Value Added Tax
(VAT).
Initially, the SWH systems were imported, mainly from China, but the system cost was
very high and not at all affordable. Then, the research and academic organizations such
as Renewable Energy Research Institute (RERC) of Bangladesh University and Institute
of Fuel Research & Development (IFRD), Centre for Mass Education in Science
(CMES), Local Government Engineering Department (LGED) strived to develop SWH
systems using locally available materials. The systems were successfully manufactured
and tested at their own facilities. In parallel, a few local manufacturers who were already
involved in other solar energy businesses started manufacturing the SWH systems
locally. It is observed that there is no steady growth in the business mainly due to – lower
living standards in rural areas, high initial costs and cheaper competitive fuels. Most
importantly, in a developing country like Bangladesh where issues of priority are basic
needs to citizens (healthy food, secure living space, and health facilities), poverty, and
electricity access to all for the Government, the market is not that developed to absorb
such technologies which form the secondary needs to citizens.
3.1.1 Installed Capacity
LEGD has installed three 200 Litres capacity vacuum tube solar water heaters and one
200 Litres flat plate solar collector for demonstration at different location of the country.
The installations were under Sustainable Rural Energy (SRE) initiative of Sustainable
Environmental Management Program (SEMP) of UNDP in 1998. Institution and Policy
Support Unit (IPSU) of Ministry of Environment & Forest (MoEF) installed three 200
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Litres vacuum tube SWH systems at different locations in Bangladesh. The locations of
installations are tabulated below.
S.No. Location Type of solar
collector
Implementing
Organization
1 Dinajpur LGED office Vacuum tube SRE, LGED
2 Khulna LGED office Vacuum tube SRE, LGED
3 Comilla LGED office Vacuum tube SRE, LGED
4 Cox’s Bazar LGED office Flat plate SRE, LGED
5 Jessore Circuit house Vacuum tube IPSU, MoEF
6 Rajshahi BMDA office Vacuum tube IPSU, MoEF
7 Kurigram Vacuum tube IPSU, MoEF
Besides above mentioned installations, there is no documentation on the number of
SWH installations, capacities, covered collector areas, various end-users and sales
figures since the emergence of the technology in Bangladesh.
3.1.2 Supply Chain Mechanism
During 1990’s there was no local manufacturing or fabrication facilities for SWH systems
in Bangladesh. Following, LEGD’s installations and REP 2002, some enterprises who
were in other solar energy businesses in the country started extending their
manufacturing facilities to solar water heaters. Most of them manufacture flat plate
collector type systems and with one or two capable of manufacturing both flat plate and
evacuated tube collector type systems. The products range from 75 Litres to 450 Litres
capacity. A few local manufacturers are namely Rahimafrooz Renewable Energy
Limited, SUN-NRG Bangladesh, First Bangladesh Technologies and Solarpac. Usually
the manufacturers provide installation and after sales services also.
Table 3 – SWH installation in Bangladesh
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3.1.3 Typical Investments Required for SWH
The initial costs for SWH systems are fairly high, on average a 200 litre flat plate
collector system including installation, costs about USD 95020.
3.1.4 Comparing with Competing Energy Sources
With about 80% of Bangladesh population living in rural areas, their typical energy
sources for water heating applications are wood, kerosene, bio gas, Liquefied Petroleum
Gas (LPG) and electricity. The urban domestic users use electricity or LPG for water
heating. While commercial and industrial water heating applications generally use
electricity and fuel oil.
During the last 7 years, all the above energy sources recorded a good percentage of
price hikes. The annual percentage increase in the prices of electricity, LPG, Kerosene
and Fuel oil are 2%, 15%, 27% and 27% respectively. On the other front, the use of solar
energy for water heating applications requires comparatively high initial investments but
the system once installed will be operational for about 20 years with marginal
maintenance activities.
The financial viability of solar water heating systems over other sources of energy is
illustrated below.
Simple payback period (Years)22
Source of fuel Residential use
Commercial use
Industrial use
Electricity 12.4 7.9 10.4
LPG 10.1 - -
PDS Kerosene 7.0 - -
Fuel Oil - 21.1 21.1
The payback periods are very long when SWH systems are to substitute electricity in
residential applications and fuel oil in commercial and industrial applications compared to
20 Exchange rate 1 USD = 69 Taka
21 Underlying assumptions and workings are attached in Annexure I.
22 Time value of money and future price hikes of input energy are ignored for simplifying the
analysis.
Table 4 – Simple payback period for SWH systems for various energy sources21
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that of electricity use in commercial and industrial applications and Kerosene in
residential applications. The lowest payback period is when domestic water heating
using PDS Kerosene is replaced by SWH, and even for that the simple payback period is
7 years!
3.2 Sri Lanka
The National Engineering Research and Development (NERD) Centre set up under the
Industrial Corporation Act in 1974 was the pioneering organization which has started
efforts towards use of solar energy for water heating applications in Sri Lanka. The
NERD at Ekala Industrial Estate has its own laboratories, workshops to undertake R&D,
testing work for solar thermal technologies. Late 1970s, there were a few SWH
installations, these were imported units and extremely costly. The centre started its
research to develop a solar water heater with a very good performance and able to
compete with imported units. The efforts were successful (1980) and the manufactured
SWH systems were commercially marketed through a firm “Alpha Thermal Systems Pvt
Limited”. Their research activities continued to develop cheaper and highly efficient
integrated solar water heater which can also be used for pre-heating of boiler feed water.
3.2.1 Installed Capacity
SWH products are popular among high-end residential consumers, hotels and tourism
industry and in some industries. Typical systems of capacities in the range of 150 to
300L are popular. An approximate of 80,000 SWH systems is installed across domestic
(~ 97%) and commercial (~ 3%) sector of which about 98% of the systems are flat plate
type collectors. Typical annual market growth is approximately 7%.
3.2.2 Supply Chain Mechanism
Many small and medium enterprises entered into manufacturing of SWH business since
1990s. The raw materials are imported from countries like Japan to manufacture the
collectors and others components are manufactured at their own plants. Usually the
manufacturers provide assembly, installation and after sales maintenance services also.
Most of the manufacturers in Sri Lanka are into manufacturing of flat plate collector SWH
system with a very few in evacuated tube collector systems. Organizations involved in
SWH businesses are tabulated below.
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S.No. Name of Service Provider
Type of SWH
systems
Services offered by
the firm
Brand name
Website
1 Access Agencies Pvt Limited
Flat plate collector
M, A SolarHart
http://www.accessagencies.com/
2 Alpha Thermal Systems Pvt
Limited
Flat plate collector
M, A Solar Therm
http://www.solartherm.lk/
3 Ceylinco Renewables Pvt
Limited
Flat plate collector
M, A - http://www.ceylincorenewables.com/
4 Energy Works Pvt Limited
Flat plate collector
M, A Wins Solar
-
5 Environ Energy Pvt Limited
Flat plate collector,
Evacuated tube
M, A SolSteam
http://www.environenergy.co.in/Srilanka.html
6 Greener Power Corporations Pvt
Limited
Flat plate collector
M, A Edward Domin
ator
http://www.solardominator.com/
7 J.N. Packaging Pvt Limited
Flat plate collector
M, A Srilak Energy
-
8 MaxLanka Industries Pvt
Limited
M, A SunRise
-
9 PE Plus Pvt Limited
Flat plate collector
M, A Solco Solar
-
10 Pubudu Solar Flat plate collector
M, A - http://www.solar.lk/
11 Solaraay Flat plate collector
M, A - http://demo.webhostingsrilanka.net/
12 Sun Tec Solar Enterprises
Evacuated tube
M, A - http://www.suntecsolarlk.com/
13 SUNBIRD Super Solar Hot Water
Systems
Flat plate collector
M, A Sun Bird
http://www.jfalanka.com/s_home.html
14 Wisdom Solar Pvt Limited
Flat plate collector
M, A SolarMate
http://www.wisdomsolar.lk/
Note: I: Importer, M: Manufacturer, A: Assembler/Fabricator
3.2.3 Typical Investments Required for SWH
SWH system capacities range from 75 to 600 litres for flat plate collectors for small
families, individual bungalows and small commercial complexes and the products for
bulk industrial or hotels are custom made. The raw materials for manufacture of
collectors are generally imported from Japan. Typical small capacity system costs are
shown in below table.
Table 5 – List of solar water heating service providers in Sri Lanka
Table 6 – Typical costs incurred for solar water heating systems
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Capacity (Litres)
Approx. Market Price (USD)23
Type of collector
75 L 680 Flat plate
100 L 820 Flat plate
150 L 1,025 Flat plate
225 L 1,400 Flat plate
300 L 1,700 Flat plate
450 L 2,400 Flat plate
The cost of imported systems were still higher and local manufacturing has brought
down the costs to some extent giving the same level of performance, but still the system
costs are not affordable to a large percentage of population.
3.2.4 Comparing with Competing Energy Sources
With about 72% of Sri Lanka population living in rural areas, their typical energy sources
for water heating applications are biomass, kerosene, Liquefied Petroleum Gas (LPG)
and electricity. The urban domestic users use electricity or LPG for water heating. While
commercial and industrial water heating applications generally use electricity and fuel oil.
During the last 7 years, all the above energy sources recorded a good percentage of
price hikes. The annual percentage increase in the prices of electricity and LPG are 10%
and 13% respectively. On the other front, the use of solar energy for water heating
applications requires comparatively high initial investments but the system once installed
will be operational for about 20 years with marginal maintenance activities.
The financial viability of solar water heating systems over other sources of energy is
illustrated below.
23 Exchange rate: 1 USD = 112 Sri Lankan rupee
24 Underlying assumptions and workings are attached in Annexure I.
Table 7 – Simple payback period for SWH systems for various energy sources24
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Simple payback period (Years)25
Source of Energy Residential Commercial Industrial
Electricity 16 10 14
LPG 13.4 - -
Kerosene 9 - -
Fuel Oil - 28 28
Generally the payback periods are very long since the cost of SWH systems is very high
in Sri Lanka and electricity and fuels are comparatively cheap.
3.3 Thailand
The early known and documented developments in SWH industry in Thailand were
initiated by the government in 1982. The Department of Alternative Energy Development
and Efficiency (DEDE), formerly known as the Department of Energy Development and
Promotion (DEDP), installed 352 square meters of flat plate collectors in 6 hospitals, 1
hotel and 1 small industry26. After two years of study, in 1984 the ownership of those
solar water heater systems was transferred to respective entities responsible for
management of those premises.
By early 90s, about 10 domestic SWH manufacturers/suppliers were in the market
though their market share is very limited. The market was dominated by imported
products from Australia, Germany and Israel. All suppliers of solar water heaters
whether imported or domestically manufactured or assembled provide installation and
maintenance services to customers. The key end-use sectors were limited to the upper-
income residential sector and the commercial sector (hotels and hospitals).
Realizing the momentum, the DEDE started promoting solar thermal applications in the
country in 1994 focusing on technical support and capacity building for end-users
25 Time value of money and future price hikes of input energy are ignored for simplifying the
analysis.
26 Country Paper for Thailand, Amnuay Thongsathitya, Director Energy Research and
Development Branch, Financing and Commercialization of Solar Energy Activities in
Southeast Asia, Kunming, Yunnan Province, China, 26-30 August 1996.
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particularly in the commercial sector, i.e. hotels and hospitals. However, in the late 90s,
the SWH market in Thailand rapidly declined for two main reasons - the 1997 Asian
economic crisis and quality and durability of the systems. A large percentage of
previously installed systems were functioning improperly due to incorrect design and
poor workmanship during installation and maintenance. In order to make the industry
sustain during the crisis, in 1998, the Thai government introduced a financial incentive
scheme to promote solar water heaters in the residential sector. The scheme however
was discontinued in 1999 as it was unable to deliver the results expected.
A few manufacturers sustained the crisis and post 2000 more suppliers entered into the
business to tap the new demand emerged from investments in commercial sector (hotel
industry). The new suppliers in the market relied on products imported from Germany,
Israel and China in addition to imports from Australia and EU member countries.
3.3.1 Installed Capacity
The study conducted in 1996 by DEDE estimated that the total installation of flat plate
collectors in Thailand until 1996 is about 50,000 m2. The study also cited that in 1996
alone, SWH systems of a total collector area of 4,150 m2 were installed in Thailand. The
market share of various end-use sectors for SWH installations in 1996 and 1997 are
charted below.
Although the solar water heater technologies have been promoted in Thailand for almost
25 years, the overall market size is still relatively small and immature. Most solar water
heater companies in Thailand (importers and manufacturers) employed only traditional
Figure 19 – Sectorial market share of SWH installations
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direct-marketing strategy to sell their products. The government support in the solar
thermal industry is very minimal and considered to be in-significant.
3.3.2 Supply Chain Mechanism
The existing market of solar water heater is relatively small in Thailand and only limited
numbers of SWH suppliers (importers, assemblers and manufacturers) are available to
serve emerging demand majority in residential and commercial sector. It is important to
note that SWH is normally not the core business of these SWH suppliers in Thailand,
and classification of these SWH suppliers as importers, assemblers and manufacturers
is made based on how they supply solar collectors as other system components are
either locally made or purchased from other suppliers. There are also few Thai
companies set up with core business on SWH and most of these are small importers.
Given the limited SWH market size in Thailand, the existing SWH suppliers must offer
one-stop-service for their customers, from design to after-sales maintenance.
Unfortunately many suppliers do not have sufficient expertise to provide all services and
this, hence, has resulted in poor performance and durability of relatively expensive SWH
systems in Thailand.
The market assessment conducted for National Energy Policy Office (NEPO) reports
that there were 12 companies involved in the SWH market in 1995, but 3 importers were
severely affected by the 1997 economic crisis and only 9 companies were left active in
1998 and more companies have become active in the Thai SWH market after the year
2000.
As also shown below, most SWH importers in the Thai market in the 80s and 90s
imported their collectors from Australia and Germany where domestic SWH markets are
mature with a number of manufacturers. During the early development stage of the Thai
SHW market, imported solar collectors, mostly from Australia, were able to capture over
80% market share, and SWH was considered as the premium product for medium- to
high-income families due to their high investment cost. Imported SWH products from
European countries (mostly from Germany and Israel), and China have been able to
strengthen their market positions. In general, German SWH product importers have
better technical capacity and are able to serve both residential and commercial
customers. For Chinese SWH product importers, only the large ones have sufficient
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technical capability to serve the more technically intensive commercial sector demand.
Most small Chinese product importers have focused on the residential sector.
No. Name Type of Supplier
SWH Marketing
since Brand
Country of Origin
1 Boonyium & Associates Limited
I - - -
2 Bermuda Thai Co. Ltd M 1985 Bermuda Super Thailand
3 Forbest Co., Ltd. I 1985 Everhot (China), Heatrae Sadia
(UK),
Rycroft (UK)
China
UK
4 Pranee Tech Co. Ltd. I 1985 Solahart
Stiebel Eltron
Solar Lee
Australia
Germany
Canada
5 Intertech Sales and Service
I 1988 Sole Alpha
6 Solarnet Co. Ltd. I 1990 Edwards Australia
7 Solar Trading Co. Ltd. M 1990 Solar-mix Thailand
8 Water System and Service Co., Ltd.
M 1990 Solar Ultra Thailand
9 B.B. Business Pattaya Co., Ltd.
I 1992 Edwards Australia
10 Poomipat Co. Ltd. I 1992 Solahart Australia
11 Scandinavian Pacific Co. Ltd.
I 1992 Edwards Australia
12 Heritage Co. Ltd. M 1992 Heritage Thailand
13 Grand Technology Co. Ltd.
I 1993 Geysor Israel
15 J-7 Engineering Co., Ltd
I, M 1997 Ecotech (Thailand)
Rheem (Australia)
Thailand
Australia
16 Electricity Generation (EGAT)
M EGAT Thailand
17 Force Link Co., Ltd. I 2000 Sunlink China
18 Infratech Engineering & Services Co., Ltd.
I 2000 Edwards Australia
19 Solason Solar Energy (Thailand) Co., Ltd.
I 2000 Solar Plus China
20 SMT Hitech Ltd., Part.
M, A 2001 Sun Thailand
Table 8 - Compilation of Solar Water Heater Suppliers in Thailand, 1985 – 2006, Sorted by Year
involved in the Thai SWH Market
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No. Name Type of Supplier
SWH Marketing
since Brand
Country of Origin
21 Solar Solutions Co., Ltd.
I 2002 Flexi-Line, Germany
22 Sunluck Solar Power Co., Ltd.
M 2002 Thailand
23 Chuchuay Trading Group Co., Ltd.
M, A 2003 Suntech Thailand
24 ENVIMA (Thailand) Co., Ltd.
I 2003 ENVIMA Solar Technology
China (Germany
design)
25 BNB Inter Group Co., Ltd.
M, A 2003 Solar Bank Thailand
26 Leonics Co., Ltd. I 2003 Apricus China
(under Australian
management)
27 NTP Techno Co., Ltd. I 2004 Rhein Series China
28 Siamsolar and Electronics Co., Ltd.
I 1993 Solarson China
29 Thai Advance Save Energy Ltd., Part.
I 2004 NEWGOT SOLAR
China
30 ARC Siam Solar Co., Ltd.
I 2005 Schueco Germany
31 Century Sun Co., Ltd. I, A, M 2005 Century Sun China
Thailand
32 Forefront Foodtech Co., Ltd.
I 2006 Denmark
33 Sunpower Asia Co., Ltd.
I 2006 Sunpower
34 Pro Solar Group Co., Ltd.
2007
Note: I: Importer, M: Manufacturer, A: Assembler/Fabricator
Source: 1) Assessment of Potential Use of Solar Thermal System in Thailand, Centre for Energy
Environment Research and Development, Asian Institute for Technology (AIT), 1998
2)www.soltherm-thailand.net
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3.3.3 Typical Investments Required for SWH
Investments and costs associated with well-functioning of any SWH system are typically:
• Initial investment: SWH system cost, installation cost
• Annual maintenance costs: timely cleaning of collector panels etc.
The initial cost of solar water heating system in Thailand is relatively high as compared to
other countries. Low annual turnover of the solar companies due to low volume of sales has
driven solar companies to mark up high price on the products in order to cover for company
expenses. Currently local manufacturers are capable of manufacturing only flat plate
collector systems whereas noticeable number of evacuated tube and flat plate collector type
systems are imported from other countries. The observation is that locally manufactured flat
plate collector systems cost less compared to that of imported products. Typical initial
investment costs required for SWH system both for domestic and commercial applications
are shown in Table 10 & 11 respectively below.
Parameters Flat plate Evacuated tube
Local
1
Local
2
Local
3
Import
1
Import
2
Import
3
Import
4
Capacity (Litres) 160 200 200 160 150 200 165
Collector area (m2) 2.16 2.0 2.02 1.9 2.3 15 tubes
20 tubes
Total unit cost (USD)27 1,660 1,795 1,948 1,941 3,252 1,626 1,321
Collectors + Storage
tank
1,581 1,710 1,855 1,848 3,097 1,548 1,258
Other components (5%) 79 85 93 92 155 77 63
Taxes (VAT 7%) (USD) 116 126 136 136 228 114 92
Installation Costs (USD) 161 161 161 161 161 161 161
Total system cost
(USD): (3)+(4)+(5)
1,937 2,082 2,245 2,238 3,641 1,901 1,575
Costs per m2 of collector area (USD)
897 1,041 1,111 1,178 1,583 950 787
27
Exchange rate: 1 USD = 31 Thai Baht
Table 9 – Costs of domestic solar hot water heating systems (2007)
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Component Typical costs Costs as percentage of total system cost
Cost of Collectors USD 565 to 1,050 per
m2
50 - 60%
Cost of Storage Tank
(3,000 - 5,000 Litres)
USD 4,900 to 10,000 20 - 30%
Costs of Installation
and rest of the
components
20 - 30% of material
costs
20 - 30%
The above table shows that collectors contribute to about 50 – 60% of the cost of the system.
Commercial installations are usually in the range of 10 – 100 m2 collector area. The variation
of the prices among different solar manufacturers does not seem to have a pattern whether it
is based on the size of system or the quality of materials. Although local products tend to
have lower prices, the price quotes are rather arbitrary as customers cannot easily compare
the price for large systems. One of the important observations on locally manufactured
products is that the cost of the systems increased at an average of 6% during 2000 and
2007.
3.3.4 Comparison with Competing Energy Sources
The alternative energy sources for water heating applications in Thailand are mainly
electricity, Liquefied Petroleum Gas (LPG) and Fuel Oil. During the last 10 years, the
percentage increases in the prices are 5%, 10% and 12% for electricity, LPG and Fuel Oil
respectively. On the other front, the use of solar energy for water heating applications
requires comparatively high initial investments but the system once installed will be
operational for about 20 years with marginal maintenance activities.
The financial viability of solar water heating systems over other sources of energy is
illustrated below.
Table 10 – Typical costs of commercial solar hot water system (2007)
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Simple payback period (Years)29
Source of fuel Residential use Commercial use Industrial use
Electricity 7 4 -
LPG - 8.37 -
Fuel Oil - 6 6
The payback periods are longer when SWH systems are to substitute electricity in residential
applications and fuel oil in commercial and industrial applications compared to that of
electricity use in the commercial sector.
3.4 The Philippines
3.4.1 Installed Capacity
Based on the country’s solar inventories in 2001, about 433 solar water heaters were
installed, and collector area information is not available. These were installed in resorts,
sports complexes, hotels, restaurants, sauna baths, and in high-income residential areas
where hot water is used for dishwashing and bathing.
3.4.2 Supply Chain Mechanism
28 Underlying assumptions and workings are attached in Annexure 3.
29 Time value of money and future price hikes of input energy are ignored for simplifying the analysis.
Table 11 – Simple payback period for SWH systems for various energy sources28
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Flat plate and evacuated type solar water heaters are equally popular in the Philippines in
domestic and commercial sector. A percentage of service providers manufacture systems
locally (by importing raw materials) and others import SWH systems. They provide
installation and maintenance services as well. Details of some organizations into SWH
business are tabulated below.
No. Name Type of
Supplier
Brand
Website
1 Edward Marcs
Philippines Inc
I, A Sunda,
Megasun
www.edwardmarcsphilinc.com
2 Solanda
Enterprises Inc
M, A Solahart http://solarpower.solanda.com/
3 Sunsaver Technology and
Manufacturing
Corporation
M, A Sunsaver -
4 Amici Water Systems
I, A A.O.Smith http://www.amici.com.ph
5 CHRP Solar Fil
Enterprises
M, A - -
6 Clean N Green
Energy Solutions Inc.
M, A CnG www.cngesi.com
7 First Energy
Solution Mfg.
Corporation
M, A - www.firstenergysolution.com
8 Seacom Inc. I, A Enersun http://www.seacominc.com.ph/
9 Freidrich Enterprises
I, A Solar Deck, Nimrod
http://freidrichent.webnode.com/
Note: I: Importer, M: Manufacturer, A: Assembler/Fabricator
Table 12 - Compilation of Solar Water Heater business in the Philippines
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3.4.3 Typical Investments Required for SWH
Typical 100 Litres evacuated tube type solar water heater approximately costs USD 1,44430
excluding installation costs.
3.5 Vietnam The solar water heaters industry in Vietnam has its roots since 1990, when some high-end
domestic consumers imported SWH systems for their bungalows from neighbouring China.
The systems were exorbitantly costly and it was very difficult to make business out of market
and get attention of the community. In 1996, Renewable Energy Research Centre (RERC) of
the Hanoi University, Ho Chi Minh City University and Technology and Solar Laboratory of
Institute of Energy, Vietnam has undertaken research on SWH for their applicability in
households, hospitals, day-care centres, clinics and workshops. RERC has installed about
50 SWH systems for testing purpose. Solar water heaters with collector area up to 60m2
have been designed and installed in communities to supply 0.8-5 m3 of hot water per day at
60-65oC for hospitals and schools. And, similarly a few systems were installed in households
with collector size in the range of 1-2m2 to supply 50-100 litres per day hot water.
3.5.1 Installed Capacity
About 3.8 million SWH systems were installed by 2006 in Vietnam31. Evacuated tube type
SWH installations in the domestic sector has large share out of SWH business in the country.
The annual growth rate of SWH installations in Ho Chi Minh City was recorded to be 40-50%
since 2008 in response to the government’s financial incentive scheme. Vietnam has
targeted to develop 1,760,000 m2 of collector area for SWH by 2015 and 9,100,000 m2 of
collector area by 2025.
3.5.2 Supply Chain Mechanism
Vietnam SWH market is dominated by imports from countries like China, Korea, and Japan.
Many firms, which are into other renewable energy businesses in the country, import SWH
systems based on demand and provide installation services to the customers. There are a
very few manufacturers of SWH in Vietnam, who import raw materials for collectors but
manufacture other components and collectors within the country. In all about 100 SWH
providers are in to business in the country, the focus being on South Vietnam (Ho Chi Minh
30
Exchange rate: 1 USD = 45 PHP
31 Thai, V.V., 2006. Vietnam Energy Policy: Energy Investment and Climate Change. Available at:
http://www.unescap.org/esd/environment/climatechange/documents/Session%205/Mr.%20Thai
_Viet%20Nam.pdf.
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City) with about 70% of total installations of the country. Few of the major firms and their
details are tabulated below.
No. Name Type of
supplier
Type of
collector
Brand
Website
1 Ariston Thermo Vietnam
M,A Flat plate Eco-flat www.ariston.vn
2 Bach-Khoa Investment and
Development
of Solar Energy Co. Ltd.
M,I, A Flat plate and
Evacuated
tube
Solar - bk http://www.bk-idse.com/
3 Dong Duong
Joint Stock
Company
I, A Flat plate
and
Evacuated tube
- -
4 Seilar Energy
Vietnam Co Ltd
I, A Flat plate
and
Evacuated tube
Seilar www.seilar.vn
5 Son Ha
Corporation
M,A Evacuated
tube
Thai
Duong
Nang
www.sonhagroup.com
6 Sunnova Solar Professional
I, A Evacuated tube
Solar pro www.sunnova.vn
Note: I: Importer, M: Manufacturer, A: Assembler/Fabricator
3.5.3 Typical Investments Required for SWH
Domestic sector being the focused sector for promotion of SWH in Vietnam, typical SWH
system capacities range from 100 to 400 litres for both flat plate collectors and evacuated
tube collector to serve small families, individual bungalows. Typical small capacity system
costs are shown in below table.
Table 13 – List of few solar water heater providers in Vietnam
Table 14 – Costs of domestic solar hot water heating systems
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Capacity
(Litres)
Type of
collector
Approx. Market
Price (USD)32
190 L Evacuated tube 535
216 L Evacuated tube 590
240 L Evacuated tube 650
300 L Evacuated tube 770
360 L Evacuated tube 880
200 L Flat plate 1,770
360 L Flat plate 2,240
Initial investment required for flat plate collector SWH systems are almost 3-4 times that of
evacuated tube SWH systems of same capacity. The products are popular in urban areas of
Vietnam, especially in South Vietnam where sun shine on average of 2000 hours annually is
available.
3.5.4 Comparison with Competing Energy Sources
The alternative energy sources for water heating applications in Vietnam are mainly
electricity, Liquefied Petroleum Gas (LPG), Kerosene, Biomass and Fuel Oil. During the last
10 years, electricity tariffs were increased by about 8%. On the other front, though the use of
solar energy for water heating applications requires comparatively high initial investments but
the system once installed will be operational for about 20-30 years with marginal
maintenance activities.
32
Exchange rate: 1 USD = 19099 VND
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The financial viability of solar water heating systems over other sources of energy is
illustrated below.
Simple payback period (Years)34
Source of fuel Residential use Commercial use Industrial use
Electricity 5 - 18 4 - 13 7 - 22
LPG 4.8- 15.9 - -
Kerosene 3 - 11 - -
Fuel Oil - 6 - 19 6 - 19
At current prices of flat plate collector SWH systems, they are not at all financially viable. For
evacuated tube SWH installations, the payback periods are long when they are to substitute
electricity in industrial applications and fuel oil in commercial and industrial applications
compared to that of electricity use in commercial and residential sectors.
33 Underlying assumptions and workings are attached in Annexure I.
34 Time value of money and future price hikes of input energy are ignored for simplifying the analysis.
Table 15 – Simple payback period for SWH systems for various energy sources33
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4 SOLAR WATER HEATERS – SYSTEM
COMPONENTS, DESIGN & INSTALLATION
Country specific information on SWH key system components, design and installation
procedures are detailed in sub-section 2.1 to 2.5. General technical details of SWH system
components, various types of SWH technologies, installation procedures are attached in
Annexure II.
4.1 Bangladesh
Solar water heating technology was known in Bangladesh since 1990s. The initial efforts
were targeted towards studies on suitability of SWH technology to the country’s climatic
conditions. Initially, the SWH systems were imported, mainly from China, but the system cost
was very high and not at all affordable. Then, the research and academic organizations such
as Renewable Energy Research Institute (RERC) of Bangladesh University and
Institute of Fuel Research & Development (IFRD), Centre for Mass Education in
Science (CMES), Local Government Engineering Department (LGED) strived to develop
SWH systems using locally available materials. The systems were successfully
manufactured and tested at their own facilities. In parallel, a few local manufacturers who
were already involved in other solar energy businesses started manufacturing the SWH
systems locally.
SWH manufacturers & taxes: IIEC with the valuable co-operation from Rahimafrooz
Renewable Energy Limited (RREL), the pioneer and leading company in the solar energy
business (including SWH systems) of Bangladesh has obtained and able to present
information on design and installation related aspects of SWH systems in the country. There
is no national estimate available for total number of SWH installations in Bangladesh. The
installations are scattered in the country and attributed to the individual manufacturers and
suppliers of SWH systems. Imported systems from China and neighbouring India dominate
and compete with the locally manufactured products. Under the guidelines of Renewable
Energy Policy (REP) 2002, imported solar water heaters are exempted from custom duties
and Value Added Tax (VAT).
Potential market for SWH installations: The potential market for SWH installations are
residential bungalows, off-grid resorts and hotels and tanneries and industries. Considering
the tropical climate in Bangladesh, high cost of SWH systems and infant stage of the
industry, the technology is not very competitive for all residential customers, the most
enquiries and installations are from only high end residential customers. For commercial
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customers (hotels and resorts) and industrial customers (especially tanneries), unreliable
power supply issues are reasons for using solar energy wherever possible. Since 2006-07,
the growth rate of number of SWH installations in commercial and industrial premises has
increased, but remains very low. RREL which is considered to be a market leader in
Bangladesh has installed 12 SWH systems in 2010. From RREL sources, the sale of SWH
systems has been improved from less than five installations/ year (during 2006 and 2009) to
around ten installations in 201035.
Types of SWH systems widely adopted & key system components: Evacuated tube type
collectors with passive system are common in the country. About 80% of the installations are
prefabricated systems with capacities in the range of 100 to 500 Litres. Expertise to install
large capacity custom built SWH systems is missing in the country. Evacuated/ Vacuum
Tubes, Assistant Tank, Reserve Tank and Mounting Structure are the key components of a
typical SWH system.
Product certifications, training of planners & installers: SWH systems in Bangladesh
need not have compliance to any product standards or mandatory certifications. Any systems
can be installed, irrespective of manufacturing standards and choice of individual
manufacturer’s installation practices. Generally, the manufacturer/supplier firm itself will
provide installation and commissioning services. Maintenance services are provided during
35 Courtesy: Solar Water Heaters Division, RREL, Bangladesh
36 Courtesy: Solar Water Heaters Division, RREL, Bangladesh
Figure 20 – Installation of three 200 Litre evacuated tube type SWH in a commercial
complex owned by A K Khan & Company Ltd. (2010)36
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the guarantee period and also provide Annual Maintenance and Contract services. The
country does not have any training programs for planners and installers of SWH systems.
The quality of installation is not up to the industry best standards.
Design and installation practices: Upon interest expressed by the site owner for
installation of SWH system for the premises, the key steps are as follows: Site survey (for
verifying suitability of the technology for the intended purpose and site conditions); Sizing of
the system; plumbing work; installation and commission. The procedures are explained in
detail in Annexure II.
4.2 Sri Lanka
The National Engineering Research and Development (NERD) Centre set up under the
Industrial Corporation Act in 1974 was the pioneering organization which has started efforts
towards use of solar energy for water heating applications in Sri Lanka. The NERD at Ekala
Industrial Estate has its own laboratories, workshops to undertake R&D, testing work for
solar thermal technologies. Late 1970s, there were a few SWH installations, these were
imported units and extremely costly. The centre started its research to develop a solar water
heater with a very good performance and able to compete with imported units. The efforts
were successful (1980) and the manufactured SWH systems were commercially marketed
through a firm “Alpha Thermal Systems Pvt Limited”.
SWH manufacturers & taxes: IIEC with the valuable co-operation from Alpha Solar Energy
Systems Pvt Ltd, the pioneer and leading company in the solar energy business (including
SWH systems) of Sri Lanka is able to present information on design and installation related
aspects of SWH systems in the country. The installations are scattered in the country and
Bangladesh
• Imported Solar Water Heaters are exempted from Value Added Tax (VAT) &
Custom Duties (REP 2002)
• Residential bungalows, off-grid resorts and hotels and tanneries and industries
are the potential markets for SWH Installations
• Type of SWH systems widely used: Evacuated tube type collectors & passive
system
• Manufacturers/ Suppliers also provide Installation, Commissioning services and
Maintenance services during Guarantee period
• Site Survey, Sizing of the System, Plumbing Work form Major Components of
Installation and Commissioning of SWH Systems
•
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attributed to the individual manufacturers and suppliers of SWH systems. Imported systems
from China and Australia exist and compete with the locally manufactured products. There
are no tax or custom duty incentives on installation or purchase of SWH systems in Sri
Lanka.
Potential market for SWH installations: The potential market for SWH installations are
high-end residential consumers, hotels and tourism industry and in some industries. An
approximate of 80,000 SWH systems are installed across domestic (~ 97%) and commercial
(~ 3%) sector of which about 98% of the systems are flat plate type collectors. Typical annual
market growth is approximately 7%.
Types of SWH systems widely adopted & key system components: Flat plate type
collectors with passive system are widely adopted and observed in the country. About 60%
of the installations are prefabricated systems with capacities in the range of 150 to 300
Litres. Expertise to install large capacity custom built SWH systems is steadily improving in
the country. Alpha Solar Energy Systems has successfully installed and commissioned
custom built 4000 Litres and 5000 Litres SWH systems recently in hotel sector. These are
considered as the largest working SWH systems in Sri Lanka and the organization has
received an order to build 10000 Litres system this year. Generally the
manufacturers/suppliers receive such large system enquiries when the management wants
to construct the facility to comply green building certifications like Leadership in Energy and
Environment Design (LEED). Flat plate collector, Storage Tank and Mounting Structure are
the key components of a typical SWH system.
Product certifications, training of planners & installers: SWH systems in Sri Lanka need
not have compliance to any product standards or mandatory certifications. Any systems can
be installed, irrespective of manufacturing standards and choice of individual manufacturer’s
installation practices. Generally, the manufacturer/supplier firm itself provides installation and
commissioning services. Maintenance services are provided during the guarantee period as
are Annual Maintenance and Contract services. The country does not have any training
programs for planners and installers of SWH systems. The quality of installation does not
match the best standards in the industry.
Design and installation practices: Upon interest expressed by the site owner for
installation of SWH system for the premises, the key steps are as follows: Site survey (for
verifying suitability of the technology for the intended purpose and site conditions); Sizing of
the system; plumbing work; installation and commissioning. The procedures are explained in
detail in Annexure II.
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4.3 Thailand
The early known and documented developments in SWH industry in Thailand were initiated
by the government in 1982. The Department of Alternative Energy Development and
Efficiency (DEDE), installed 352 square meters of flat plate collectors in 6 hospitals, 1 hotel
and 1 small industry37. By early 90s, some local manufacturers started growing their
business and about 10 domestic SWH manufacturers/suppliers were in the market though
their market share is very limited. The market was dominated by imported products from
Australia, Germany and Israel. Realizing the momentum, the DEDE started promoting solar
thermal applications in the country in 1994 focusing on technical support and capacity
building for end-users particularly in the commercial sector, i.e. hotels and hospitals.
However, in the late 90s, the SWH market in Thailand rapidly declined for two main reasons -
the 1997 Asian economic crisis and quality and durability of the systems. A large percentage
of previously installed systems were functioning improperly due to incorrect design and poor
workmanship during installation and maintenance. In order to make the industry sustain
during the crisis, in 1998, the Thai government introduced a financial incentive scheme to
promote solar water heaters in the residential sector. The scheme however was
discontinued in 1999 as it was unable to deliver the results expected.
37 Country Paper for Thailand, Amnuay Thongsathitya, Director Energy Research and Development
Branch, Financing and Commercialization of Solar Energy Activities in Southeast Asia,
Kunming, Yunnan Province, China, 26-30 August 1996.
Sri Lanka
• High-end residential consumers, hotels and tourism industry are Potential
Markets for SWH Installations and Annual Market Growth of 7%
• Growth of SWH Installations in Sri Lanka is attributed to the Marketing Efforts of
Individual Manufacturers or Suppliers
• Flat plate type collectors with passive system are widely used SWH systems. Pre-
fabricated systems with 150-300 L capacities are popular
• Manufacturers/ Suppliers also provide Installation, Commissioning services and
Maintenance services during Guarantee period
• Site Survey, Sizing of the System, Plumbing Work form Major Components of
Installation and Commissioning of SWH Systems
•
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SWH manufacturers & taxes: IIEC through its regional branch office in Thailand has
obtained and able to present information on design and installation related aspects of SWH
systems in the country. The installations are spread over all regions in the country and
attributed to the individual manufacturers and suppliers of SWH systems and the DEDE
efforts in co-operation with multi-lateral/bilateral organizations. A few manufacturers
sustained the financial crisis (1997) and post 2000 more suppliers entered into the business
to tap the new demand emerging from investments in commercial sector (hotel industry). The
new suppliers in the market relied on products imported from Germany, Israel and China in
addition to imports from Australia and EU member countries. Tax incentives are also
available on Renewable energy & Energy efficiency investments in the country. Through this,
100% tax exemption is applicable from first to eighth year and 50% tax exemption from ninth
to thirteenth year of product purchase.
Potential market for SWH installations: The potential market for SWH installations are
high-income earning residential consumers, hotels, hospitals and tourism industry. The study
conducted in 1996 by DEDE estimated that the total installation of flat plate collectors in
Thailand until 1996 is about 50,000 m2. The study also cited that in 1996 alone, SWH
systems of a total collector area of 4,150 m2 were installed in Thailand. After this study;
there is no estimate available on the industry growth.
Types of SWH systems widely adopted & key system components: Open loop flat plate
type collectors with active system are widely adopted and observed in the country. Most of
the systems are one tank systems with no heat exchanger. Expertise to install large capacity
custom built SWH systems is steadily improving in the country. Flat plate collector, storage
tank, circulating pump and mounting Structure are the key components of a typical SWH
system.
Product certifications, training of planners & installers: Thai Industries Standard Institute
(TISI) has developed product standards38 for SWH systems in domestic and industrial units
in 1998 and 1989 respectively. These product standards are not mandatory and so there is
no quality check on manufacturing standards of SWH systems. Any systems can be
installed, irrespective of manufacturing standards and choice of individual manufacturer’s
installation practices. Generally, the manufacturer/supplier firm itself will provide installation
and commissioning services. Maintenance services are provided during the guarantee period
and also provide Annual Maintenance and Contract services.
38 The product standards for solar water heaters are discussed in “Assessment of Country Standards”
report, the next deliverable under the SSFA contract.
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In a process to maintain quality in design and installation, the DEDE in cooperation with
Ministry of Energy and German Technical Cooperation (GTZ) has conducted two training
programs on solar thermal systems. More details on the training programs are discussed in
Section 6.7.
Design and installation practices: Upon interest expressed by the site owner for
installation of SWH system for the premises, the key steps are as follows: Site survey (for
verifying suitability of the technology for the intended purpose and site conditions); Sizing of
the system (Use of T-SOL® Software for simulation and design of SWH systems); plumbing
work; installation and commission. The procedures are explained in detail in Annexure II.
4.4 The Philippines
The University of the Philippines Solar Laboratory (UPSL) established in 1989 is the pioneer
institute involved in both PV and solar thermal research and promotion activities in the
Philippines. This was established to serve as a testing facility for the evaluation of the
performance of solar photovoltaic and thermal systems in the Philippines. Since its inception,
UPSL has continuously developed its expertise in many fields of Renewable Energy (RE)
and has consistently advocated sustainable development and the judicious utilization of
energy resources through the implementation of its projects and programs.
SWH manufacturers & taxes: IIEC through its regional branch office in Philippines has
obtained and able to present information on design and installation related aspects of SWH
systems in the country. The installations are spread over all regions in the country and
attributed to the individual manufacturers and suppliers of SWH systems. A few local
manufacturers are present in the country and many import raw materials and components
and assemble locally. Major imports into the country are from Australia. The Government of
Thailand
• On purchase the following exemptions are applicable: 100% tax exemption from
1st to 8th year and 50% tax exemption from 9th to 13th year
• High-income earning residential consumers, hotels, hospitals and tourism industry are
potential markets for SWH Installation
• Open Loop Flat Plate type collectors and active systems are widely used SWH
systems
• Manufacturers/ Suppliers also provide Installation, Commissioning services and
Maintenance services during Guarantee period
• Site Survey, Sizing of the System, Plumbing Work form Major Components of
Installation and Commissioning of SWH Systems
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the Philippines has introduced several tax incentives or rebates for manufacturers,
fabricators and suppliers promoting renewable energy technologies including solar water
heaters in the country. The benefits include
• 7 year Income Tax Holiday (ITH)
• 10 year Tax and Duty-free Importation of Components Parts and Materials
• Zero Percent Value-Added Tax transactions
• 100% Tax Credit on Domestic Capital Components, Parts and Materials
Potential market for SWH installations: The potential market for SWH installations are
high-income earning residential consumers, hotels, hospitals and tourism industry. The
survey conducted by The Philippine Department of Energy on Inventory of RE Technologies
(2001) revealed that about 433 solar water heaters were installed; however collector area
information is not available39. These were installed in resorts, sports complexes, hotels,
restaurants, sauna baths, and in high-income residential areas where hot water is used for
dishwashing and bathing. After this study; there is no estimate available on the industry
growth. Installed capacity of systems usually range between 200 and 400 Litres
(prefabricated systems) for residential customers (75% of total installations).
Types of SWH systems widely adopted & key system components: Both flat plate type
collectors and evacuated tube type collectors are equally popular in Philippines. For single
unit residential houses flat plate collectors using passive thermo-syphon systems are
installed. Active solar heating systems using pumps and controls are generally installed in
large buildings with some architectural constraints. Balcony-hung installations are observed
in residential condominiums with a shortage of roof space. Evacuated tube collectors are
adopted mostly for industrial and commercial use requiring temperature above 60ºC. Closed
circuit design is observed in areas with poor water quality especially in rural areas. The solar
water heating systems require a backup heating system and the most common backup used
in the market are electric storage water heaters. Flat plate collector/ Evacuated tube
collector, storage tank, circulating pump and mounting structure are the key components of a
typical SWH system.
Product certifications, training of planners & installers: The Bureau of Product
Standards (BPS), Republic of the Philippines directly adopted International Standardization
39 Inventory of RE Technologies, The Philippine Department of Energy. Available at:
http://www.doe.gov.ph/er/RE%20tables%20pdf/inventory%20of%20re%20tech.pdf.
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Organization (ISO) standards of solar water heaters for the Philippines40. These product
standards are not mandatory and so there is no quality check on manufacturing standards of
SWH systems. Any systems can be installed, irrespective of manufacturing standards and
choice of individual manufacturer’s installation practices. Generally, the
manufacturer/supplier firm itself provides installation and commissioning services.
Maintenance services are provided during the guarantee period and also provide Annual
Maintenance and Contract services. There are no training programs for planners or installers
in the country.
Design and installation practices: Upon interest expressed by the site owner for
installation of SWH system for the premises, the key steps are as follows: Site survey (for
verifying suitability of the technology for the intended purpose and site conditions); Sizing of
the system; plumbing work; installation and commission. The procedures are explained in
detail in Annexure II.
4.5 Vietnam The solar water heaters industry in Vietnam has its roots since 1990, when some well to do
domestic consumers imported SWH systems for their bungalows from neighbouring China.
The systems were exorbitant and it was very difficult to grab attention of the community and
create a market. In 1996, Renewable Energy Research Centre (RERC) of the Hanoi
University, Ho Chi Minh City University and Technology and Solar Laboratory of Institute of
Energy, Vietnam has undertaken research on SWH for their applicability in households,
hospitals, day-care centres, clinics and workshops. Since then Government of Vietnam and
solar water heater suppliers have been promoting the technology through awareness and
incentive programs.
40 The product standards for solar water heaters are discussed in “Assessment of Country Standards”
report, the next deliverable under the SSFA contract.
Philippines
• High-income earning residential consumers, hotels, hospitals and tourism industry are
the potential markets of SWH Installation
• Both Flat plate type collectors and Evacuated Tube Collectors are equally popular in
Philippines
• Manufacturers/ Suppliers also provide Installation, Commissioning services and
Maintenance services during Guarantee period
• Site Survey, Sizing of the System, Plumbing Work form Major Components of
Installation and Commissioning of SWH Systems
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SWH manufacturers & taxes: IIEC through its regional branch office in Thailand has
obtained and able to present information on design and installation related aspects of SWH
systems in the country. Vietnam SWH market is dominated by imports from countries like
China, Korea, and Japan. Many firms, which are into other renewable energy businesses in
the country, import SWH systems based on demand and provide installation services to the
customers. There are a very few manufacturers of SWH in Vietnam, who import raw
materials for collectors but manufacture other components and collectors within the country.
In all about 100 SWH providers are in this business in the country, mainly in South Vietnam
(Ho Chi Minh City) having about 70% of the installations of the country. There are no tax or
customs incentives on installation or purchase of SWH systems in Vietnam.
Potential market for SWH installations: About 3.8 million SWH systems were installed by
2006 in Vietnam41. Evacuated tube type SWH installations in the domestic sector has large
share out of SWH business in the country. The annual growth rate of SWH installations in Ho
Chi Minh City was recorded to be 40-50% since 2008 in response to the government’s
financial incentive scheme. Vietnam has targeted to install 1,760,000 m2 of collector area for
SWH by 2015 and 9,100,000 m2 of collector area by 2025.
Types of SWH systems widely adopted & key system components: Evacuated tube type
collectors are popular in Vietnam. Usually the systems are prefabricated, passive thermo-
syphon and open systems of the capacities in the range of 150 to 500 Litres. Evacuated tube
collector, storage tank, and mounting structure are the key components of a typical SWH
system.
Product certifications, training of planners & installers: SWH systems in Vietnam need
not comply with any product standards or mandatory certifications. Any systems can be
installed, irrespective of manufacturing standards and choice of individual manufacturer’s
installation practices. Generally, the manufacturer/supplier firm itself provides installation and
commissioning services. Maintenance services are provided during the guarantee period and
also provide Annual Maintenance and Contract services. The country does not have any
training programs for planners and installers of SWH systems. The quality of installation is
not up to the industry best standards.
Design and installation practices: Upon interest expressed by the site owner for
installation of SWH system for the premises, the key steps are as follows: Site survey (for
41 Thai, V.V., 2006. Vietnam Energy Policy: Energy Investment and Climate Change. Available at:
http://www.unescap.org/esd/environment/climatechange/documents/Session%205/Mr.%20Thai
_Viet%20Nam.pdf.
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verifying suitability of the technology for the intended purpose and site conditions); Sizing of
the system; plumbing work; installation and commission. The procedures are explained in
detail in Annexure II.
Vietnam
• Vietnam SWH market is dominated by imports from countries like China, Korea, and
Japan
• Annual growth rate of SWH installations in Ho Chi Minh City was recorded to be 40-
50% since 2008
• Pre-fabricated, passive thermo-syphon, open systems are widely used SWH systems
• Manufacturers/ Suppliers also provide Installation, Commissioning services and
Maintenance services during Guarantee period
• Site Survey, Sizing of the System, Plumbing Work form Major Components of
Installation and Commissioning of SWH Systems
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5 ECONOMIC EVALUATION OF SWH
APPLICATIONS
The general tendency of customers is to make purchase decisions based on initial costs of
products. However, the initially cheaper products may cost more over their life time when
compared to other similar products and different technology. This concept of life cycle cost
evaluation absolutely applies to solar water heaters in comparison to water heating
technologies using electricity, fossil fuels etc. The common principles of life cycle cost
evaluation applicable for evaluating SWH systems in any country are provided in Annexure
III. Though the initial cost of SWH is fairly high, is recovered through savings in energy bills
over a period of time.
The financial evaluation of sample SWH systems installed is discussed below.
Bangladesh case study
In Bangladesh, the important factors considered while evaluating viability of using solar
energy for water heating applications in a facility are the availability of reliable electricity
supply42, the loss encountered due to unreliable power supply and unit cost of fuels which
solar energy is going to replace. The following is an example to understand payback period
of the investment in SWH system.
• Type of customer: Commercial (Mermaid Eco Resort)
• Year of installation of SWH system: 2010
• Fuel used prior to installation of SWH: Electricity
• Size of SWH system: 300 Litres
The following graph shows cumulative cash flow analysis of this system using simulation
software tool RETScreen (developed by Retscreen International Clean Energy Support
Centre).
42
Annual Report: 2008-2009; Bangladesh Power Development Board, Bangladesh Power
Development Board. Available at: http://www.bpdb.gov.bd/download/Annual%20Report-10.pdf.
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The facility will receive positive cash inflows after 3.5 year of installation through avoided
electricity usage for water heating applications.
Sri Lanka case study
In Sri Lanka, the important factors considered while evaluating viability of using solar energy
for water heating applications in a facility are the availability of reliable electricity supply, the
loss encountered due to unreliable power supply and unit cost of fuels which solar energy is
going to replace and return on investment. The following is an example to understand
payback period of the investment in SWH system.
• Type of customer: Residential (Independent house)
• Year of installation of SWH system: 2006
• Fuel used prior to installation of SWH: Electricity
• Size of SWH system: 100 Litres
The following graph shows cumulative cash flow analysis of this system using simulation
software tool RETScreen (developed by Retscreen International Clean Energy Support
Centre).
Figure 21 – Cumulative cash flows of sample 300 Litres SWH system in Bangladesh
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-1,000
0
1,000
2,000
3,000
4,000
5,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Cu
mu
lati
ve
ca
sh f
low
s (U
S $
)
Year
The facility will receive positive cash inflows after 5 years of installation through avoided
electricity usage for water heating applications.
Thailand case study
In Thailand, the important factors considered while evaluating viability of using solar energy
for water heating applications in a facility are unit cost of fuels which solar energy is going to
replace and return on investment. Given below is an example showing the payback period of
the investment in SWH system.
• Type of customer: Commercial (Hotel)
• Year of installation of SWH system: 1988
• Fuel used prior to installation of SWH: Electricity
• Size of SWH system: 10,000 Litres
The following graph shows cumulative cash flow analysis of this system using simulation
software tool RETScreen (developed by Retscreen International Clean Energy Support
Centre).
Figure 22 – Cumulative cash flows of sample 100 Litres SWH system in Sri
Lanka
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-40,000
-20,000
0
20,000
40,000
60,000
80,000
100,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Cu
mu
lati
ve c
ash
flo
ws
US
$
Year
The facility will receive positive cash inflows after 5 year of installation through avoided
electricity usage for water heating applications.
The Philippines case study
In Philippines, the important factors considered while evaluating viability of using solar
energy for water heating applications in a facility are unit cost of fuels which solar energy is
going to replace, incoming temperature of water and return on investment. The following is
an example to understand payback period of the investment in SWH system.
• Type of customer: Commercial (Hotel)
• Fuel used prior to installation of SWH: Electricity
• Size of SWH system: 8,000 Litres
The following graph shows cumulative cash flow analysis of this system using simulation
software tool RETScreen (developed by Retscreen International Clean Energy Support
Centre).
Figure 23 - Cumulative cash flows of sample 10000 Litres SWH system in Thailand
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The facility will receive positive cash inflows approximately after 2 years of installation
through avoided electricity usage for water heating applications.
Summary of Above Sample Case Studies
Country Parameters considered for
financial evaluation
Installation details Payback
period (years)
Bangladesh • availability of reliable
electricity supply
• productivity loss due to
unreliable power supply
• unit cost of fuels which solar
energy is going to replace
• Commercial (Mermaid
Eco Resort)
• SWH system since
2010
• Avoided fuel: Electricity
• Size of system: 300
Litres
3.5
Sri Lanka • availability of reliable
electricity supply
• productivity loss encountered
due to unreliable power
supply
• unit cost of fuels which solar
energy is going to replace
• return on investment
• Residential
(Independent house)
• SWH system since
2006
• Avoided fuel: Electricity
• Size of system: 100
Litres
5
Thailand • unit cost of fuels which solar
energy is going to replace
• Commercial (Hotel)
• SWH system since 5
Figure 24 - Cumulative cash flows of sample 10000 Litres SWH system in Philippines
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Country Parameters considered for
financial evaluation
Installation details Payback
period (years)
• return on investment 1988
• Avoided fuel: Electricity
• Size of system: 10,000
Litres
Philippines • unit cost of fuels which solar
energy is going to replace
• incoming temperature of
water
• return on investment
• Commercial (Hotel)
• Avoided fuel: Electricity
• Size of system: 8,000
Litres
2
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6 NATIONAL PRODUCT STANDARDS FOR SWH
6.1 Need for Quality Products
The term ‘quality’ as defined by the American National Standards Institute (ANSI) and the
American Society for Quality Control (ASQC) is “the totality of features and characteristics of
a product or service that bears on its ability to satisfy given needs”. The definition implies that
identification of features and characteristics of products and services that determine
customer satisfaction is essential and forms the basis for measurement and control. The
“ability to satisfy given needs” reflects the value of product or service to the customer,
including the economic value, reliability, and maintainability. A certain quality level in
manufacturing of the system components and the system as a whole is essential and acts a
pre-condition in order to guarantee an appropriate and optimized function of the system.
Quality assurance (QA) is the systematic monitoring and evaluation of the various aspects of
a project, service or facility to maximize the probability that minimum standards of quality are
being attained by the production process. Two basic principles of QA are: "Fit for purpose -
the product should be suitable for the intended purpose”; and "Right first time - mistakes
should be eliminated”. QA includes regulation of the quality of raw materials, assemblies,
products and components, services related to production, and management, production and
inspection processes.
In order to ensure a certain quality level in manufacturing, product standards are developed
and the products are tested for compliance to the standards. International Organization for
Standardization (ISO) is the world's largest developer and publisher of International
Standards. ISO is a network of the national standards institutes of 162 countries, one
member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the
system.
Solar water heaters are typically known for high investment cost and less operating costs
and long lifespan of 15-20 years by type of solar collectors. Considering these factors,
maintaining high quality in manufacturing is needed in order to deliver uninterrupted services
over prolonged life time of the technology. Realizing this, ISO and its members are in
process of continuously developing/ revising product standards for Solar water heaters. The
products complying with the Standard are ensured a minimum quality (fit for purpose).
Several countries have realized the importance and necessity of quality and performance
check for solar water heaters and are engaged in developing of SWH product standards
applicable to their countries. The product standard of a country may have considerable
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variance compared to the other because of climatic conditions, solar irradiation, hot water
requirement pattern etc.
Details or status of solar water heater product standards for the countries selected for study
under the current SSFA, namely – Bangladesh, Philippines, Sri Lanka, Thailand, Vietnam are
discussed in the following sections.
6.2 SWH Standards for Bangladesh
Product standards are not available for SWH systems in Bangladesh, there were no
documented measures/initiatives for development of such standards in Bangladesh.
However, Bangladesh Standards and Testing Institute (BSTI)43, the national standards body
was established in 1985 for product standardizations in the country.
6.3 SWH Standards for Sri Lanka
Product standards are not available for SWH systems in Sri Lanka; the efforts are being put
in to develop standards and may likely to come out in near future. The Sri Lanka Standards
Institute (SLSI)44 is the premier national body associated with the task of developing product
standards.
6.4 SWH Standards for Thailand
The Thai Industrial Standards Institute (TISI)45 is an internationally recognized focal point for
standardization in Thailand to strengthen capabilities for sustainable competitiveness. There
are two product standards applicable to solar water heaters in the country: TIS 899 – 2532
(1989) applicable for industrial solar flat plate collectors and TIS 1507 – 2541 (1998) for
domestic solar flat plate collectors.
43 “Bangladesh Standards and Testing Institution.” [Online]. Available: http://www.bsti.gov.bd/.
[Accessed: 27-Apr-2011].
44 “Sri Lanka standards Institution.” [Online]. Available: http://www.slsi.lk/index.php. [Accessed: 27-
Apr-2011]. 45
“Thai Industrial Standards Institute Eng.” [Online]. Available: http://www.tisi.go.th/eng/index.php.
[Accessed: 26-Apr-2011].
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6.4.1 TIS 899 – 2532 (1989) applicable for industrial solar flat plate
collectors
This Thai Industrial Standard specifies types, components, required characteristics, label,
sampling and judging criteria, and testing of solar collector with exposure area larger than 0.5
m2.
Types of solar collectors:
The type of solar collectors covered by the Standard are divided into 4 categories based on
production processes of absorbing plates.
Type Manufacturing technique of Absorber plate
Type 1 Electroplating technique
Type 2 Chemical process
Type 3 Painting technique
Type 4 Other techniques
Components:
According to the Standard, the solar collector consists of frame, transparent plate, absorber
plate, tubes located inside the solar collector, insulator, and container and backing plate.
Required characteristics:
Parameter Sub-parameters
Solar collector
performance
Leak-proof
Tolerance of temperature change
Materials for solar
collector
Transparent plate
• Glass used as a transparent plate should comply with TIS 54 or
tempered glass
Absorber plate
• Optical property: The label must correctly state the solar
absorbance and emittance.
• Tolerance to the weather: There must be visible crack or flake at the
surface of the absorber plate no more than 1% of the whole surface.
• Adhesion: The surface of the absorber plate that is peeled off with
the glue strip should be no more than 5 mm2.
• Tolerance to corrosion: There must be no corrosion or swelling at
the surface of the absorber plate and no rust should be found at the
metal base.
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Parameter Sub-parameters
Container and backing plate
• Tolerance to the weather: There must be no visible crack or flake at
the surface of the container and the backing plate.
• Tolerance to corrosion: There must be no visible corrosion or
swelling at the weld.
Insulator
• Changes of mass and dimensions of the insulator must not be
greater 5%
Sampling and judging criteria:
Sampling and judging criteria can be done for one particular lot with no more than 300 plates,
and with the same type, materials, production process, and trading period.
Parameter Criteria
Sampling and
acceptance for
performance testing of
the solar collector
Random Sampling from the same lot for 1 plate.
The sample must be identical to solar collector performance in
order to qualify.
Sampling and
acceptance of the
testing of absorber
plate, container and
backing plate, and
insulator
A sample of the absorber plate, container and backing plate, and
insulator are cut off from the solar collector that has
passed the performance test and absorber plate testing.
The sample must comply with the material standard for solar
collector.
Judging criteria Samples must comply with the sampling criteria and the standard
of material, which can be chosen as the material for a solar
collector. If the samples qualify, that lot of solar collectors can be
regarded as the solar collectors approved by the TIS.
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Methods of test:
Name of the test: Internal Pressure Test of the Absorber
Description: The absorber shall be pressure-tested to assess the extent to which it can withstand the pressures which it might meet in
service. Inorganic absorbers shall be pressure-tested at ambient air temperature within the range of 20°C to 40°C. The test pressure shall be
1.5 times the maximum collector operating pressure specified by the manufacturer. The test pressure shall be maintained for 15 minutes
meanwhile the collector shall be inspected for leakage, swelling and distortion.
Name of the test: Exposure Test
Description: The exposure test provides a low-cost reliability test sequence, indicating operating conditions which are likely to occur during
real service and which also allows the collector to "settle", such that subsequent qualification tests are more likely to give repeatable results.
The collector shall be mounted outdoors, but not filled with fluid. All except one of the fluid pipes shall be sealed to prevent cooling by natural
circulation of air and one fluid pipe that is left open permit free expansion of air in the absorber. The collector shall be inspected for damage or
degradation under the following parameters.
Corresponding climate parameter values for testing are:
� 30 hours of global solar irradiance on collector plane, G > 850 W/m2 (in sequences with a minimum of 30 minutes or longer)
� at least 30 days with a global daily irradiation on collector plane, H > 14 MJ/m2 (interruptions allowed)
� surrounding air temperature, Tamb> 15°C
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Name of the test: High Temperature Resistance Test
Description: This test is intended to assess rapidly whether a collector can withstand high irradiance levels without failures, such as glass
breakage, collapse of plastic cover, melting of plastic absorber, or significant deposits on the collector cover from outgassing of collector
material. The collector shall be mounted outdoors or in a solar simulator, and shall not be filled with fluid. All of the fluid pipes except for one
shall be sealed to prevent cooling by natural circulation of air.
A temperature sensor shall be attached to the absorber to monitor its temperature during the test. The sensor shall be positioned at two-thirds
of the absorber height and half the absorber width. It shall be fixed firmly in a position to ensure good thermal contact with the absorber.
Furthermore the sensor shall be shielded from solar radiation.
Corresponding climate parameter values are:
� global solar irradiance on collector plane, G ≥ 1000 W/m2
� surrounding air temperature, Tamb 20 – 40 °C
� surrounding air speed < 1 m/s
The test shall be performed for a minimum of 1 hour after steady-state conditions have been established, and the collector shall be
subsequently inspected for signs of damage such as degradation, shrinkage, outgassing or distortion.
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Name of the test: External Thermal Shock Test
Description: Collectors may be exposed to sudden rainstorms on hot sunny days, especially in months of monsoon, causing a severe external
thermal shock. This test is intended to assess the capability of a collector to withstand such thermal shocks without a failure. The collector shall
be mounted either outdoors or in a solar simulator, but shall not be filled with fluid. All except one of the fluid pipes shall be sealed to prevent
cooling by natural circulation of air. One shall be left open to permit free expansion of air in the absorber.
A temperature sensor may be optionally attached to the absorber to monitor its temperature during the test. An array of water jets shall be
arranged to provide a uniform spray of water over the collector. The collector shall be maintained under a high level of solar irradiance for a
period of 1 hour before the water spray is turned on. It is then cooled by the water spray for 15 minutes before being inspected. The collector
shall be subjected to two external thermal shocks.
The corresponding solar irradiation level is:
� global solar irradiance on collector plane, G > 850 W/m2
The water spray shall have a temperature of less than 25°C and a flow rate in the range of 0.03 kg/s to 0.05 kg/s per square metre of collector
aperture.
If the temperature of the water which first cools the collector is likely to be greater than 25°C (for example if the water has been sitting in a pipe
in the sun for some time), then the water shall be diverted until it has reached a temperature of less than 25°C before being directed over the
collector. The collector shall be inspected for any cracking, distortion, condensation, water penetration or loss of vacuum.
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Name of the test: Internal Thermal Shock Test
Description: Collectors may from time to time be exposed to a sudden intake of cold heat transfer fluid on hot sunny days, causing a severe
internal thermal shock, for example, after a period of shutdown, when the installation is brought back into operation while the collector is at its
stagnation temperature. This test is intended to assess the capability of a collector to withstand such thermal shocks without failure.
The collector shall be mounted either outdoors or in a solar simulator, but shall not be filled with fluid. One of its fluid pipes shall be connected
via a shutoff valve to the heat transfer fluid source and the other shall be left open initially to permit the free expansion of air in the absorber
and also to permit the heat transfer fluid to leave the absorber. If the collector has more than two fluid pipes, the remaining openings shall be
sealed in a way that ensures the designed flow pattern within the collector.
A temperature sensor may be optionally attached to the absorber to monitor its temperature during the test. The collector shall be maintained
under a high level of solar irradiance for a period of 1 hour before it is cooled by supplying it with heat transfer fluid for at least 5 minutes or
until the absorber temperature drops below 50°C. The collector shall be subjected to two internal thermal shocks.
The corresponding solar irradiation level is:
� global solar irradiance on collector plane, G > 850 W/m2
The heat transfer fluid shall have a temperature of less than 25 °C. The recommended fluid flow rate should be minimum 0.02 kg/s per square
metre of collector aperture (unless otherwise specified by the manufacturer). The collector shall be inspected for any cracking, distortion,
deformation, water penetration or loss of vacuum.
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Name of the test: Rain Penetration Test
Description: This test is applicable only for glazed collectors and is intended to assess the extent to which glazed collectors are substantially
resistant to rain penetration. They shall normally not permit the entry of either free-falling rain or driving rain. Collectors may have ventilation
holes and drain holes, but these shall not permit the entry of driving rain. The collector shall have its fluid inlet and outlet pipes sealed (unless
hot water is circulated through the absorber), and be placed in a test rig at the shallowest angle to the horizontal recommended by the
manufacturer. If this angle is not specified, then the collector shall be placed at a tilt of 20° to the horizontal. Collectors designed to be
integrated into a roof structure shall be mounted in a simulated roof and have their underside protected. Other collectors shall be mounted in a
conventional manner on an open frame or a simulated roof.
The collector shall be sprayed on exposed sides, using spray nozzles or showers. The collector shall be mounted and sprayed while the
absorber in the collector is kept warm (minimum 50°C). This can be done either by circulating hot water at about 50°C through the absorber or
by exposing the collector to solar radiation. The heating up of the collector should be started before spraying of water in order to ensure that
the collector box is dry before testing. In cases of collectors having wood in the backs (or other special cases), the laboratory must take all
necessary measures during the conduction of the test so that the final result will not be influenced or altered by the special construction of the
collector. The collector shall be sprayed with water at a temperature lower than 30°C and with a flow rate of more than 0.05 kg/s per square
metre of sprayed area. The duration of the test shall be 4 hours. The water pressure shall be 300 kPa. The collector shall be inspected for
water penetration. The results of the inspection, i.e. the extension of water penetration and the places where water penetrated shall be
reported.
The penetration of water into the collector shall be determined by inspection (looking for water droplets, condensation on the glass cover or
other visible signs) and by one of the following methods:
� weighing the collector before and after the test: the determined water quantity shall be less than 50 grams/m² collector area;
� measuring the humidity inside the collector (standard uncertainty better than 5%)
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� measuring the condensation level, which shall be less than 20 % of the transparent cover and the quantity of the water that come out of
the collector when tipping it shall be less than 50 grams/m² collector area.
Due to the heavy monsoon rain and generally high air humidity, it is recommended to locate an adequate number of drain holes at the lowest
point of the collector casing, so that ingress of water can be avoided. Thereby the invaded water and humidity can escape more easily.
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Name of the test: Mechanical Load Test
Description:
Positive pressure test
This test is intended to assess the extent to which the transparent cover of the collector and the collector box are able to resist the positive
pressure load due to the effect of wind.
The collector shall be placed horizontally on an even ground. On the collector a foil shall be laid and on the collector frame a wooden or
metallic frame shall be placed, high enough to contain the required amount of gravel or similar material. The gravel, preferably type 2-32 mm,
shall be weighed in portions and distributed in the frame so that everywhere the same load is created (pay attention to the bending of the
glass), until the desired height is reached. The test can also be carried out loading the cover using other suitable means (e.g. water), or a
uniformly distributed set of suction cups. As a further alternative, the necessary load may be created by applying an air pressure on the
collector cover. The test pressure shall be increased at maximum steps of 250Pa until a failure occurs or up to the value specified by the
manufacturer. The test pressure shall be at least 3200Pa.
Note: The value 3200 Pa corresponds to requirements in areas with high danger of occurrence of tropical cyclones, e.g., like in Caribbean
areas. In Europe, recommended values are between 1000 and 2400 Pa.
A failure can be the destruction of the cover and also the permanent deformation of the collector box or the fixings. The pressure at which any
failure of the collector cover or the box or fixings occurs shall be reported together with details of the failure. If no failure occurs, then the
maximum pressure which the collector sustained shall be reported. The maximum positive pressure is the pressure reached before a failure
occurs. The permissible positive pressure is the maximum pressure divided by the safety factor. When the test is done with an on-roof
mounting system the test result is also valid for the roof integrated mounting system.
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Negative pressure test
This test is intended to assess the extent to which the fixings between the collector cover and collector box are able to resist uplift forces
caused by the wind. The collector shall be installed horizontally on a stiff frame by means of its mounting fixtures. The frame which secures the
cover to the collector box shall not be restricted in any way. A lifting force which is equivalent to the specified negative pressure load shall be
applied evenly over the cover. The load shall be increased in steps up to the final test pressure. If the cover has not been loosened at the final
pressure, then the pressure may be stepped up until a failure occurs. The time between each pressure step shall be the time needed for the
pressure to stabilise.
Either of two alternative methods may be used to apply pressure to the cover:
� Method 1
The load may be applied to the collector cover by means of a uniformly distributed set of suction cups.
� Method 2
For collectors which have an almost airtight collector box, the following procedure may be used to create a negative pressure on the cover.
Two holes are made through the collector box into the air gap between the collector cover and absorber, and an air source and pressure
gauge are connected to the collector air gap through these holes. A negative pressure on the cover is created by pressurising the collector
box. For safety reasons the collector shall be encased in a transparent box to protect personnel in the event of failure during this test.
During the test, the collector shall be visually inspected and any deformations of the cover and its fixings reported. The collector shall be
examined at the end of the test to see if there are any permanent deformations. The test pressure shall be increased in steps of 250Pa until a
failure occurs or up the value specified by the manufacturer. The test pressure shall be at least 2400Pa. A failure can be the destruction of the
cover and also the permanent deformation of the collector box or the fixings.
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A permanent deformation is to be assigned to a load value, while it is completely relieved after every load increment of 250Pa and the
distortion is measured compared to the beginning of the test sequence. The value of an inadmissible permanent deformation amounts to max.
0.5 %. (Example: 10 mm distortions at 2 m length of collector frame). The pressure at which any failure of the collector cover or the box or
fixings occurs shall be reported together with details of the failure. If no failure occurs, then the maximum pressure which the collector
sustained shall be reported. The maximum negative pressure is the pressure reached before a failure occurs. The permissible negative
pressure is the maximum pressure divided by the safety factor.
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Name of the test: Impact Resistance Test
Description: Collectors shall sustain no significant damage, cracking, breakage or puncture of any glazing, or the absorber in an unglazed
collector, when affected by hail. This test is intended to assess the extent to which a collector can withstand the effects of heavy impacts
caused by hailstones. Where hail guards are provided, it is recommended that they are located not less than 50 mm from the surface of the
glazing of glazed collectors, or the absorber surface for unglazed collectors. The collector shall be mounted either vertically or horizontally on a
support. The support may be stiff enough so that there is negligible distortion or deflection at the time of impact. Steel balls (diameter: 25.4
mm) shall be used to simulate a heavy impact. If the collector is mounted horizontally then the steel balls are dropped vertically, or if it is
mounted vertically then the impacts are directed horizontally by means of a pendulum. In both cases, the height of the fall is the vertical
distance between the point of release and the horizontal plane containing the point of impact.
The point of impact shall be no more than 5 cm from the edge of the collector cover, and no more than 15 cm from the corner of the collector
cover, but it shall be moved by several millimetres each time the steel ball is dropped. A steel ball shall be dropped onto the collector 10 times
from the first test height (0.2 m), 10 times from the second test height (0.4 m), etc. until the maximum test height (2.0 m) is reached. The test
has to be stopped when the collector sustains some damage or when the collector has survived the impact of 10 steel balls at the maximum
test height. The collector shall be inspected for damage. The results of the inspection shall be reported, together with the height from which the
steel ball was dropped and the number of impacts which caused the damage.
Thailand’s Building Energy Code46 does not include or recommend use of solar water heaters particularly, but use of Renewable energy
technologies as a whole is supported.
46 “New Building Energy Code & Government Policies of Thailand”, n.d., http://lcsrnet.org/meetings/2010/11/pdf/D2S9_3_Rakkwamsuk.pdf.
The solar collectors are tested to perform even during instances of high humidity (Rain Penetration Test) and high solar irradiation (High
Temperature Resistance Test)
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6.5 SWH Standards for The Philippines
Bureau of Product Standards (BPS)47 is the national standards body in the Philippines to
develop, implement and coordinate standardization activities in the country. It is primarily
involved in standards development, product certification, and standards
implementation/promotion to raise the quality and global competitiveness of Philippine
products at the same time to protect the interests of consumers and businesses.
In 2008, the BPS has adopted SWH standards developed by ISO for the Philippines48. The
Standard number and equivalent ISO standard of SWH Standards adopted by the BPS are
below.
No. PNS
Standard No.
Title Reference ISO
Standard No.
1 PNS ISO 94-
5:2008
Solar heating “Domestic water heating
systems” Part 5: System performance
characterization by means of whole-
system tests and computer simulation
ISO 9459 – 5: 2007
2 PNS ISO
9459-1:2008
Solar heating “Domestic water heating
systems” Part 1: Performance rating
procedure using indoor test methods
ISO 9459 – 1:1993
3 PNS ISO
9459-2:2008
Solar heating “Domestic water heating
systems” Part 2: Outdoor test methods for
system performance Characterization and
yearly performance prediction of solar-only
systems
ISO 9459 – 2: 1995
4 PNS ISO
9808:2008
Solar water heaters Elastomeric materials
for absorbers, connecting pipes and
fittings - Method of assessment
ISO 9808:1990
Applicability and summary of the first two listed PNS standards above are discussed in the
following sub-sections.
47
“Bureau of Product Standards S&C Portal - Home”, n.d., http://www.bps.dti.gov.ph/.
48 Source of Information: Communication from BPS
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6.5.1 PNS ISO 94 – 5: 2008 Solar heating “Domestic water heating
systems” Part 5: System performance characterization by
means of whole-system tests and computer simulation
Scope:
This standard discusses a method of determining the performance of a solar water heating
system under natural outdoor conditions and prescribes a method of transforming the test
results (using computer simulation) from the particular climate conditions of the test to long-
term average conditions for the test location or for other location with similar solar irradiation
conditions.
Field of Application:
The tests will be carried out in typical operational conditions; the only restriction on the nature
of systems that can be tested is that there can be no long-term energy storage. The total
energy storage capacity in the solar pre-heat section of the system must be less than twice
the nominal system capacity. The standard applies only to systems with auxiliary heating
systems (integrated or remote). Both thermo-siphon and forced circulation systems are
covered by the standard.
Test Method:
Name of the test: Preliminary Evaluation
Description: The system will be inspected to determine its basic construction details and
verified as being in accordance with the manufacturer’s description. The manufacturer shall
nominate a daily total load that the particular system is designed to deliver.
Name of the test: No-solar test
Description: The purpose of the no-solar test is to determine the ability of the system to
meet the load specified by the manufacturer, when the solar input is zero (to ensure that the
auxiliary heating system is adequate).
The system under test is connected to the cold water supply and filled. The supplementary
energy source is switched on and the system left until the first thermostat cut-out occurs
following which the manufacturer’s specified load is applied using the draw-off sequence.
The system shall be operated with constant daily energy draw-off for 5 days after the first
thermostat cut-out. The delivered temperature for the purpose of assessing energy draw-off
shall be not less than 55oC and four no-solar test periods should be evaluated.
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Name of the test: Solar test
Description: For Solar test, the performance of the system shall be evaluated for three
different daily loads. The difference between the maximum and minimum loads shall be at
least 0.5 times the nominal system capacity. To minimize transient effects associated with
outdoor operation the performance is averaged over test periods of 5 or more days.
Sample analysis of test results and formats for reporting system performance using all the
tests are shown in the standard.
6.5.2 PNS ISO 9459 – 1: 2008 Solar heating “Domestic water heating
systems” Part 1: Performance rating procedure using indoor test methods
Scope & Applicability:
This standard specifies a uniform indoor method of testing for rating solar domestic water
heating systems for thermal performance under benchmark conditions. And, the standard is
not applicable to concentrating or evacuated tube systems. The standard covers testing the
performance of three categories of solar domestic hot water systems – Solar-only systems,
Solar pre-heater systems, Solar-plus-supplemental systems.
Test can be performed in the following ways:
1) By assembling the complete system and irradiating the collector array by use of a
solar irradiance simulator
2) By assembling the complete system and non-irradiating the collector array (by adding
a controlled heating device in series)
For either case, the system shall be tested for a test day with no solar input.
Name of the test: Solar – Only and Solar – Preheat System Test
Description: In order to perform this test, the storage device shall be filled with water at a
specified temperature, on the morning of the first day. The system shall be energized and
shall be allowed to operate in its normal mode during the day and each successive day of the
test. Any device which is intended to limit or control the operation of the solar energy
collection equipment shall be set as recommended by the manufacturer. On each test day,
water shall be withdrawn from the system at times, rates, and duration as specified for the
day. The energy content of the water withdrawn shall be determined by installed flow meters
and temperature sensors. The delivery temperature shall be measured and recorded at no
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The PNS standards that are adopted from ISO has no relevance to climate conditions
(humidity levels, solar irradiation, salt in air etc.) in the Philippines
greater than 4.5 kg intervals throughout the withdrawal period.
The test shall be performed until the daily system solar contribution is within three percent of
the value on the previous test day.
Name of the test: Solar Hot Water System Test with Integral Supplement Heaters
Description: The test procedure is same as that of Solar-only and Solar-preheat system
except that performance of Solar hot water system with integral supplement heaters is
measured for both a test day with solar energy input and a test day with no solar energy
input.
Name of the test: Hot water – Continuous Draw Test
Description: The purpose of this test is to determine the capability of the solar hot water
system to deliver hot water with no auxiliary energy source operating and during a
continuous draw-down. The solar hot water system shall be installed, adjusted, and operated
similar to the two tests procedure described above. Ten minutes after the last draw on the
final test day, a special test draw test shall be conducted. All auxiliary energy source
thermostats shall be disabled. The cold water supply shall be adjusted to supply water at tmain
± 1oC. Water shall be withdrawn at a uniform flow rate as specified in the test day.
6.6 SWH Standards for Vietnam
Product standards are not available for SWH systems in Vietnam, there were no documented
measures/initiatives for development of such standards for Vietnam. However, Vietnam
Standards and Quality Institution (VSQI)49, the national representative body for product
standardizations in Vietnam is operational.
49 “GS1 Vietnam - Vietnam Standards and Quality Institute.” [Online]. Available:
http://www.gs1vn.org.vn/default.aspx?portalid=5. [Accessed: 27-Apr-2011].
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6.7 Planning, Installation and Maintenance
In addition to quality assurance in manufacturing, proper site planning, installation and
periodic maintenance are equally important for sustained life of the systems. Uptake of Solar
water heaters in Thailand is an example; because of improper planning, installation and
maintenance over the years (during 1990-2000), the users have lost faith in the technology
which affected the sales of the SWH systems in the country.
6.7.1 Accreditation /Certification of Planners or Installers
Realizing the need for adoption of best practices for planning and installation of solar water
heating systems, countries like Thailand started training and certification program for the
workmen (Details available in Section 9.1.3).
6.7.2 Commissioning & Certificate of Installation
Currently none of the five countries – Bangladesh, Philippines, Thailand, Sri Lanka and
Thailand have mandate/requirement to get certified before commissioning the solar water
heating system. Once the installation is done, the service provider themselves checks the
proper working of the system and then is commissioned.
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7 IN-COUNTRY INSTITUTIONAL AND POLICY
FRAMEWORK FOR SWH
Bangladesh
An independent institution Sustainable Energy Development Agency (SEDA) was established
following the Renewable Energy Policy of Bangladesh (2008) to act as a focal point for
Renewable Energy (RE) and Energy Efficiency (EE) development and promotion in Bangladesh.
UNDP facilitated the GoB in conceptualizing the establishment of SEDA. Prior to the
establishment of SEDA, the Power Cell (Power Division) of Ministry of Power, Energy and
Mineral Resources (MPEMR) was responsible for development of Renewable Energy
Technologies (RETs) in the country. It has been proposed to establish Renewable Energy
Development Agency (REDA) under National Energy Policy of Bangladesh in 1995 but the
government was not successful till 2008 when it approved the establishment of SEDA.
Several government organizations – Bangladesh Power Development Board (BPDB), LGED,
Rural Electrification Board (REB), IFRD; academic institutions – Bangladesh University of
Engineering and Technology (BUET), Dhaka University (DU), Chittagong University of
Engineering and Technology (CUET), Rajshahi University of Engineering and Technology
(RUET), Khulna University of Engineering and Technology (KUET); non-governmental
organizations – Grameen Shakti, Bangladesh Rural Advancement Committee (BRAC) and
private companies are actively participating for promotion of RETs including solar thermal
applications for water heating in the country. The work and services flow between various
organizations working on SWH are pictured below.
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Sri Lanka
The Sri Lanka Sustainable Energy Authority (SLSEA) was established on 01 October 2007,
enacting the Sri Lanka Sustainable Energy Authority Act No. 35 of 2007 of the Parliament of Sri
Lanka. The SLSEA was established to serve as an apex institution to guide the nation in all its
efforts to develop indigenous energy resources and conserve energy resources through
exploration, facilitation, research & development and knowledge management in the journey of
national development, paving the way for Sri Lanka to gain energy security by protecting natural,
human and economic wealth by embracing best sustainability practices. Before 2007, the
Energy Conservation Fund (ECF) established under Energy Conservation Fund Act of 1985 was
entrusted to develop renewable energy sources in the country.
Thailand
The Department of Alternative Energy Development and Efficiency (DEDE) under Ministry of
Energy is the focal agency looking after alternative energy sources development (including solar
energy) in the country. The department was set up early 1953 and restructured to the present
form in the name of DEDE in 2002. The early department was named ‘National Energy
Authority’, which was established under National Energy Authority Act in 1953. The authority
was working under the Office of the Prime Minister when it started, and underwent several
changes in the organizational set up (under Ministry of National Development – 1963-71; Office
of the Prime Minister – 1971-79; Ministry of Science, Technology and Energy – 1979-2002;
Ministry of Energy – 2002 to till now).
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Bureau of Solar Energy Development under DEDE is dedicated to the development of solar
energy and entitles the following powers and duties:
• Studying, researching, demonstrating, developing and promoting the technology of the solar
energy.
• Studying and applying the solar energy innovation that consistent with the local resources
and potentials.
• Disseminating, transferring and doing campaign to give knowledge on solar energy
technologies.
• Co-implementing with or giving support to other related agencies or as getting assigned.
Thai Solar Thermal Association (STA) was established in January 2008 with 19 local
manufacturers in the solar thermal business in the country as founding members. The aim of the
association is to raise public awareness and improve, manufacture quality products in the
country. The association also played an outstanding role in convincing the government in
developing the recent subsidy scheme for integrated solar water heating systems.
In addition to these, few universities, educational institutions and non-governmental
organizations are also contributing their role at various stages (feasibility studies, local
manufacturing, quality and performance tests and product testing) for promotion of SWH
systems.
The Philippines
The University of the Philippines Solar Laboratory (UPSL) established in 1989 is the pioneer
institute involved in both PV and solar thermal research and promotion activities in the
Philippines. This was established to serve as a testing facility for the evaluation of the
performance of solar photovoltaic and thermal systems in the Philippines. Since its inception,
UPSL has continuously developed its expertise in many fields of Renewable Energy (RE) and
has consistently advocated sustainable development and the judicious utilization of energy
resources through the implementation of its projects and programs. The UPSL is directly
managed by the Department of Electrical and Electronics Engineering and the National
Engineering Centre of the University of the Philippines. In addition, the Laboratory serves as a
technical arm of the Non-Conventional Energy Division (NCED) of the Philippine Department of
Energy (DoE).
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The government organizations involved in solar thermal energy development activities in the
country includes the Non-Conventional Energy Division of the Department of Energy (DoE-
NCED), National Electrification Administration (Alternative Energy Division), National Power
Corporation (Energy Utilization Division), and the Department of Science and Technology
(DOST). Other organizations such as the Renewable Energy Association of the Philippines
(REAP), some rural co-operatives, NGOs, Affiliated Non-Conventional Energy Centres (ANEC)
and certain academic institutions are also contributing their part in promotion of the technologies.
Very recently, Renewable Energy Management Bureau (REMB) was set up to act as technical
secretariat to develop, formulate and implement policies, plans and programs on RE and one of
the divisions under REMB is dedicated to solar and wind energy development. Another recent
development was establishment of National Renewable Energy Board (NREB) in 2009 to speed
up the setting of mechanisms and incentives critical to the implementation of the renewable
energy law.
Vietnam
There is no apex body in Vietnam for development of Renewable Energy technologies including
solar thermal. The solar thermal activities or projects are handled by different ministries of the
government with support from various educational institutions, research centres and local
government bodies. The government ministries that are involved in current SWH projects are
Energy Department of Ministry of Industry and Trade (MoIT) and Electricity of Vietnam (EVN).
The organizations/institutional bodies involved with SWH industry in Vietnam are charted below.
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7.1 Policy Interventions for SWH Systems
7.1.1 Bangladesh
Bangladesh developed and adopted the first National Energy Policy in 1995 and updated the
policy in 2005. As mentioned in the NEP document of 1995, one of the objectives of the policy is
“to ensure environmentally sound sustainable energy development programmes, with due importance to
renewable energy, causing minimum damage to environment”. The Power Cell which was then
responsible for RE & EE development in the country drafted Renewable Energy Policy for approval of
GoB. The REP was approved by the GoB in 2008 and SEDA is setup under the policy. The
excerpts from 2008 REP – “To promote solar water heaters, use of electricity and gas for water
heating will be discouraged. In this regard necessary steps will be considered accordingly”. The
fiscal incentives proposed under the REP for promotion of SWH systems along with other RETs
are discussed in sub-section 8.1.1.
7.1.2 Sri Lanka
The National Energy Policy & Strategies of Sri Lanka accepted by Government of Sri Lanka in
2008 is the only driving policy for power and energy sector developments in the country.
However, there is no mention of promotion of solar water heaters technologies in the policy
document. The country’s focus with respect to renewable sources of energy is to utilize and
generate off-grid on grid connected electricity to meet the demand from supply side.
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7.1.3 Thailand
Solar water heater installations are not mandatory to use for water heating applications in
domestic, commercial and industrial sectors. The country is in the phase of actively promoting
the initial percentage of installations successfully in order to re-gain faith that has been lost due
to improper designs, installations and maintenance over last one, two decades. Once the
technology regains faith it will be incorporated in building laws as per the targets of “Long term
alternative energy planning: 2008-2022” of Government of Thailand.
7.1.4 The Philippines
There are no guidelines or regulatory provisions for promotion of SWH systems in the
Philippines. The recent "Guidelines on Energy Conserving Design of Buildings” by the
Philippines Department of Energy in November 2008 does not mention about SWH
technologies.
7.1.5 Vietnam
Vietnam does not have any government policy to regulate solar thermal industry in the country,
but there was a mention to SWH technology promotion in National Strategic Program on Energy
Savings and Effective Use (2005). MoIT has released the National Strategic Program on Energy
Savings and Effective Use in 2005 with in framework of Vietnam National Energy Efficiency
Program (VNEEP) for the period 2006-2015 and it was approved and enforced on 14 April 2006
by the Prime Minister. The program’s energy savings goal is 3%-5% of total energy consumption
(compared to business-as-usual scenario) during 2006-10; 5-8% of the total energy consumption
during 2011-15. Promotion of SWH systems was identified as a measure of energy conservation
and a demonstration model of SWH was completed in 2007-08 under High Energy Efficiency
Equipment component of VNEEP project. Vietnam Energy Efficiency Building Code incorporates
use of SWH for water heating applications in the building.
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7.2 In-country Testing Facilities, Accredited Test
Laboratories and Certification
7.2.1 Bangladesh
Until recently, the country was fully dependent on imported solar water heating systems mainly
from China. Presently, RERC - Dhaka University, IFRD of Bangladesh Council of Scientific and
Industrial Research (BCSIR) and Centre for Mass Education in Science (CMES) are involved in
Research & Development (R&D) activities of SWH systems.
RERC has designed and fabricated a SWH flat plate collector system of 60-400 Litre capacities
with all local available materials and successfully tested the performance in July 2009.
Bangladesh has a wealth experience in solar water heaters on laboratory scale, which is not
commercialized rightly for its promotion.
IFRD has established a laboratory for conducting research & testing on solar, wind, and micro-
hydro equipment to study the applicability for water pumping and generation of electricity in
remote and off-shore islands of Bangladesh. The facility can be improved to test solar water
heaters in future.
The CMES was established in 1978 to create awareness among citizens of Bangladesh towards
developments in science and technology. Later on CMES started solar energy related activities
through its field offices. It has recently established its “Solar Lab” to take up adaptive research
on accessories of solar PV systems, solar cookers, solar water heaters and solar dryers. CMES
is one of the country’s focal agencies in the “RET in Asia Program” funded by Swedish
International Development Cooperation Agency (SIDA).
7.2.2 Sri Lanka
Sri Lanka does not have any approved solar water heaters testing laboratories within the
country. However, the NERD has all the facilities required for testing of the units.
7.2.3 The Philippines
The UPSL established in 1989 is the major testing facility for solar water heaters in the
Philippines.
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7.2.4 Thailand
Following the development of in-country manufacturing facilities of solar water heating systems,
a few testing facilities for testing solar thermal collectors (indoor and outdoor) have been
developed at Asian Institute of Technology (AIT), King Mongkut’s University of Technology
Thonburi (KMUTT), School of Renewable Energy Technology (SERT) in Phitsanulok province
and Chiang Mai University (CMU). The facilities are intermittently operational according to the
production level of collectors. It is not mandatory for the manufacturers to conduct performance
and reliability tests at national certified test institutes with which some of the manufacturers are
taking privilege of skipping the tests for their products.
Asian Institute of Technology (AIT)
The test method adopted in AIT is called a ‘transient test method’ which is more suitable to
meteorological conditions in Thailand. This outdoor collector test method was developed by Prof.
Supachart Chungpaibulpatana in 1988. The test requires a simple fixed test rig and focuses on a
special evaluation algorithm. Unlike the standard collector performance tests which require
continuous high radiation level for days, this test can be performed during overcast sky days.
A simple one-node heat capacitance model is used to characterize the collector thermal
performance. In the experiment, the collector inlet and outlet are connected in a closed circuit by
a tube equipped with a circulating pump and the fluid inside the whole system is circulated at a
very high flow rate.
King Mongkut’s University of Technology Thonburi (KMUTT)
Using the Solar Simulator and Outdoor Test, Ms Sawitri Chuntranulak and Prof. Prida
Wibulswas from KMUTT developed testing method for Domestic Solar Water Heating System.
School of Renewable Energy Technology (SERT)
The study at SERT is focused on “Suitable Meteorological Condition for Solar Collector
Performance Testing for Thailand”
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Chiang Mai University (CMU)
CMU researchers have studied on the performance of solar collector in the north region of
Thailand.
7.2.5 Accredited Test Laboratories, Product Certification
Accredited test laboratories are independent laboratories that test the SWH systems for comply
of the national product standards. The manufacturers take a sample from the manufactured lot to
these test laboratories to get certified to satisfy the standards.
National certifying bodies are the organizations which certify the manufacturing facilities for
complying quality standards of International Organization for Standardization. Few solar water
heater manufacturers in the countries of interest have obtained/in process of receiving the
quality management certification50.
Below is the available list of test facilities for SWH systems in the chosen five countries under
the project.
Test facility Type of tests
Bangladesh
Renewable Energy Research
Centre (RERC) - Dhaka University
Indoor and outdoor performance test for flat plate solar
collectors (services not for available for manufacturers,
only research purpose)
Sri Lanka
National Engineering Research and
Development (NERD)
Indoor and outdoor performance test for flat plate solar
collectors (services not for available for manufacturers
on continuous basis, only for research purpose)
Thailand
Asian Institute of Technology (AIT) Commercial performance testing of solar flat plate
glazed collectors using outdoor transient test method
King Mongkut’s University of
Technology Thonburi (KMUTT)
Indoor and outdoor tests and solar simulator for solar
flat plate glazed collectors
50
“Solar Products in Sri Lanka ~ Green Earth renewables (Pvt) Limited”, n.d.,
http://www.greenearth.lk/products.htm.
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Test facility Type of tests
School of Renewable Energy
Technology (SERT), Narasaun
University (NU)
Outdoor test method for solar flat plate glazed
collectors
Chiang Mai University (CMU) Outdoor test method for solar flat plate glazed
collectors
Philippines
University of the Philippines Solar
Laboratory (UPSL)
Indoor and outdoor performance test for flat plate solar
collectors & components (services not for available for
manufacturers, only research purpose)
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8 SWH PROMOTIONAL MEASURES
8.1 Financial Measures and Incentives
8.1.1 Bangladesh
Annexure – I of REP 200251 has the list of equipment that is eligible for fiscal incentives or tax
rebates in Bangladesh and solar water heaters are one of them. The applicable tax rebates or
incentives from GoB for SWH are as follows:
• VAT exemption of 15% on raw materials and equipment in manufacturing of SWH systems.
• Establishment of micro-credit support system to provide financial support for SWH purchases
in rural and remote areas.
• SEDA will consider providing subsidies for installation of SWH systems.
• Renewable energy project investors both in public and private sectors shall be exempted
from corporate income tax for a period of 5 years (2008-2013) and it will be extended
periodically following impact assessment of tax exemption on promotion of the technology.
• For successful implementation of the projects and initiatives, lending procedure will be
simplified and strengthened.
8.1.2 Sri Lanka
There are no incentives for SWH system users in the country. However, the users can benefit
from lower energy bills.
8.1.3 Thailand
Prior to 2008, there was no financial support or incentive available for solar water heater
installations in Thailand. First time in 2008, the DEDE has introduced a financial subsidy scheme
for successful installations of integrated solar water heating systems in the country. Integrated
solar water heating systems are hybrid using both solar energy and waste heat recovery for
water heating.
51 2002. Renewable Energy Policy of Bangladesh - Draft, Dhaka: MPEMR, GoB. Available at: http://www.bdix.net/sdnbd_org/world_env_day/2001/sdnpweb/issues/energy/national-policy/Draft%20Renewable%20Energy%20Policy%20of%20Bangladesh%20-%20Oct%202002.pdf.
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The financial support started from September 2008 and the first phase of support was targeted
at covering 5,000 m2 collector area by April 2009. Under the first phase of the project 21 projects
were approved meeting the target of 5,000 m2 collector area and subsidy to an amount of USD
0.7 million. The program plans to support 7,500 m2; 10,000 m2 and 17,500 m2 in second; third
and fourth phase of the project respectively.
The financial support covers the feasibility study and preliminary design costs and criteria for
benefiting from the scheme are as follows:
1. Collector area of installation between 40 m2 and 500 m2 are eligible under the scheme with
limitation on maximum support not exceeding USD 72,600.
2. Incentive up to USD 145 per square meter of collector area is provided for a device with an
average solar energy value of annual generation greater than or equal to 800 kWh/m2.
3. Incentive up to USD 97 per square meter of collector area is provided for a device with an
average solar energy value of annual generation between 500 and 800 kWh/m2.
In addition to the above financial support / direct subsidy, tax incentives were also available on
Renewable energy & Energy efficiency investments in the country. Through this, 100% tax
exemption is applicable from first to eighth year and 50% tax exemption from ninth to thirteenth
year of product purchase.
8.1.4 The Philippines
The Government of the Philippines has introduced several tax incentives or rebates for
manufacturers, fabricators and suppliers promoting renewable energy technologies including
solar water heaters in the country. The benefits include
• 7 year Income Tax Holiday (ITH)
• 10 year Tax and Duty-free Importation of Components Parts and Materials
• Zero Percent Value-Added Tax transactions
• 100% Tax Credit on Domestic Capital Components, Parts and Materials
8.1.5 Vietnam
Ho Chi Minh City program for promoting solar water heaters has been developed, jointly by
MoIT, the EVN and the city’s People’s Committee. The program aims to supply 30,000 solar
water heaters for domestic users at a flat discount of USD 52 per system in a span of five years
between August 2008 and July 2013. Of the fifty SWH providers competed for the program, Thai
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Duong Nang solar water heater manufactured by the Son Ha Group was approved by the
program implementer for the installations to be made under the program. Energy Conservation
Centre of Ho Chi Minh City, along with about 50 local firms into solar water heaters business has
organized awareness programs for the incentive scheme promotion.
8.2 Marketing and Awareness Programs
8.2.1 Bangladesh
There are no specific marketing and awareness programs for promotion of SWH systems in the
country. Several organizations, academic institutions and NGOs are involved in promoting
various RETs but none of them are for solar thermal technologies.
8.2.2 Sri Lanka
The marketing and awareness activities are purely driven by product manufacturers. The SWH
manufacturers promote their products through newspaper advertisements, seminars,
conference-cum-exhibitions. Government departments/organizations are not yet involved in the
technology promotional activities.
8.2.3 Thailand
Before official launch of the integrated solar water heating systems subsidy program, several
road shows and awareness campaigns were organized inviting customers to participate in the
subsidy program in several areas of the country – Bangkok, Nakornratchasima, Rayong, Hua-
hin, Chiengmai, Chiengrai and Phuket.
Another notable public awareness programs were initiated by Thai Solar Thermal Association
(STA). STA directories containing details on solar thermal applications are being distributed to
provincial energy offices, universities and consultants in the solar energy field throughout the
country.
Very recently, in June 2010 DEDE and German Technical Cooperation (GTZ) jointly organized a
training course (Train-the-Trainer program) on Solar Thermal Systems under the Solar Heat in
Agro Industrial Process (Solar Heat) project. More number of qualified personnel on solar
thermal systems is good sign towards better installations and sustained use of SWH systems.
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8.2.4 The Philippines
There are no exclusive awareness programs for SWH technology uptake in the Philippines.
8.2.5 Vietnam
Until recently, there are no exclusive marketing and awareness programs for SWH in Vietnam.
Upon success of SWH installations in South Vietnam (Ho Chi Minh City) through the
government’s incentive program, the MoIT and EVN have started campaign to encourage the
use of solar energy for water heating in Central Vietnam and Central highlands. The campaign
is launched in the city of Danang in November 2009 as a part of national programme to conserve
energy.
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9 SOLAR WATER HEATERS – COUNTRY
SUCCESSES
9.1 Bangladesh
Solar water heating technology was known in Bangladesh since 1990s. The initial efforts were
targeted towards studies on suitability of SWH technology to the country’s climatic conditions.
Since then, the country’s focus is on continuous research and development of low cost, high
quality SWH systems suitable for Bangladesh conditions. The research and academic
organizations such as Renewable Energy Research Centre (RERC) of Bangladesh University
and Institute of Fuel Research & Development (IFRD), Centre for Mass Education in Science
(CMES), Local Government Engineering Department (LGED) played very important role in
development of the technology to the present state. A few milestone projects/initiatives for
promotion of SWH systems in Bangladesh are discussed below.
1. Feasibility Study and R&D on Renewable Energies by IFRD: IFRD of Bangladesh
Council of Scientific and Industrial Research (BCSIR) have undertaken "Feasibility Study on
R&D of Renewable Energy (Solar, Wind, Micro, and Mini Hydro)52". The aim of the project is
to generate data and information to study the possibility of natural solar, wind and micro
hydro power applications in Bangladesh either for water pumping or for generation of
electricity particularly in remote and off-shore islands. And, as a part of the project solar data
– sunshine, radiation, temperature, humidity data have been collected for 3 regions namely
Dhaka, Tecknaf and Sailo propat, Bandarban which was also useful for solar water heaters
research activities in the regions.
2. Solar and Wind Energy Resource Assessment (SWERA) by UNEP: The SWERA
programme funded by UNEP is developed in order to provide easy access to high quality
renewable energy resource information and data to users all around the world. RERC being
the Bangladesh country focal point for SWERA project, the renewable energy related data is
now made available on SWERA website53. Bangladesh was included in the first phase of the
project implemented with GEF funds during July 2001 to July 2004. In a country like
Bangladesh where information or data dissemination is not a usual practice, this programme
52 M. Islam, Utilization of Renewable Energy Technologies in Bangladesh, 1st ed. Shakti, 2002.
53 http://swera.unep.net/
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helped facilitate renewable energy policy and investment by making the high quality
information freely available to key user groups. This enables the selection of a particular
location on the map and obtaining Direct Normal Irradiance, Global Horizontal Irradiance,
Latitude Tilt Irradiance, wind speed, air temperature, earth skin temperature, cooling degree
days, heating degree days, atmospheric pressure and relative humidity.
3. Sustainable Rural Energy (SRE) Project by LGED: The SRE project has been conceived
by LGED within the overall framework of the Sustainable Environmental Management
Program (SEMP) being implemented by the Ministry of Environment and Forest (MoEF) with
financial assistance from the UNDP. The twin objectives of SRE component under SEMP are
technology demonstration and technology transfer in the field of renewable energy in
Bangladesh. Under technology demonstration component, three vacuum tube solar water
heaters and one flat plate solar collector were installed at different locations of the country.
The idea was to replicate the model in hotels, hospitals and domestic users. The SRE
developed the “Renewable Energy Information Network (REIN)54”, with the objective of
providing a comprehensive information platform for RETs. Though there was no special
mention of SWH it was emphasized in the network activities; this network was designed and
tailored to help energy planners, project developers, researchers and all relevant
organizations in developing RET projects and promotion of renewable energy utilization in
Bangladesh. REIN website acts as an information hub of renewable energy sector in
Bangladesh. Recently German Technical Cooperation GTZ offered to upgrade the website.
Any institution working on renewable energy or interested on renewable energy, can become
members of Renewable Energy Information Network (REIN).
9.2 Sri Lanka
The National Engineering Research and Development (NERD) Centre is the pioneering institute
in carrying out studies of solar thermal applications in Sri Lanka during 1970s. The NERD at
Ekala Industrial Estate has its own laboratories, workshops to undertake R&D, and testing work
for solar thermal technologies. By 1980s the institute was successfully manufacturing SWH from
locally available materials. In the span of 20 years, about 80,000 SWH systems have been
installed all over the country. The popular sizes are between 150 to 300 L.
54 REIN website: http://www.lged-rein.org/index.php
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The growth of SWH industry in Sri Lanka is mainly attributed to the efforts of manufacturers,
research institutions in the country and though it is not the Government’s priority. Till now the
country does not have any large scale or nation-wide initiatives/programs for promotion of solar
water heaters.
9.3 The Philippines
Most of the government programs promoting application of solar energy are in photovoltaic
systems for decentralized power generation and not on solar water heating applications. The
country does not have any noticeable nation-wide or large scale projects/promotional activities
for SWH industry in the Philippines.
9.4 Thailand
Solar water heating technologies began in Thailand in the early 1980s when the Department of
Alternative Energy Development and Efficiency (DEDE) installed SWH systems having a total of
352 m2 of collector area in 6 hospitals, a hotel and a small scale industry. The collectors were of
glazed and/or unglazed flat plate collectors. The industry grew slowly, with a greater portion of
imported products from Australia, Germany and Israel and a small slice of local manufacturing.
With improper installations and maintenance activities and lack of efficient system design by
service providers, the customers lost faith in the longevity of the technology. Later, towards the
end of 1990s the Asian economic crisis hit the industry. The SWH industry was severely
affected, even after the Thai government introducing a financial incentive scheme for promotion
of SWH systems in residential sector. Starting 2000, the Thai government has been assisting the
SWH industry through a combination of new quality standards, training programs for better
quality installations, incentive programs and tax benefits and impact of this assistance is
observed through increase in number of installations. A few milestone projects/initiatives for
promotion of SWH systems in Thailand are discussed below.
1. School of Renewable Energy Technology (SERT), formerly known as Solar Energy
Research and Training Centre was established in 1995, as an autonomous state centre to
develop renewable energy technologies to serve the energy needs of developing countries in
Southeast Asia. SERT is located at Naresuan University, Phitsanulok, Thailand. Solar
Thermal Research Unit is one of the effective sections of SERT. The unit aims to produce
and develop the knowledge, and technology in the solar thermal field, publishes a journal,
and provides academic services in this field in order to address the problems resulting from
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the energy crisis and leading to climate change. Solar Thermal Research Unit is working with
both private and governmental sectors in both national and international organizations.
2. Establishment of Thai Solar Thermal Association: The Solar Thermal Association was
established in January 2008, with 19 local manufacturers in solar thermal business as
founding members. The aim of the association is to act as single point contact for
government on solar thermal applications, public awareness on solar thermal technologies
and manufacture of quality products.
3. Training and Technology Transfer of Solar Thermal Energy: Government of Thailand
with assistance from German Technical Corporation (GTZ) has been implementing Training
and Technology Transfer program of Solar Thermal Energy in the country.
Under Solar Heat in Agro Industry Program, GTZ will work with DEDE during 2009-2011 and
cover the following activities:
• General understanding of solar thermal applications
• Design and installation practices for suppliers and contractors
• Operations and maintenance for owner of the system
• Technology knowhow for local manufacturer to improve quality of products
4. Draft document on Long Term Alternative Energy Planning 2008-2022: As per the
directives of the plan, the targets for solar thermal promotion are tabulated below.
Short term
2008-2011 Medium term 2012-2016
Long term 2017-
2022
Promotion of the use of hybrid SWH
• Subsidy program
• Funding for studies
Promote use of small SWH
systems
Building code for
SWH
Demonstration of hybrid SWH in 100
government offices
Demonstration of small
SWH
R&D for small SWH
Technology transfer R&D to reduce cost of SWH components
Testing facility
Table 16 - Solar thermal targets in Long term alternative energy planning 2008-2022
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9.5 Vietnam
Because of its proximity to China, the Vietnamese were introduced to SWH technology in the
1990s when a few affluent domestic consumers imported SWH from neighbouring China.
Renewable Energy Research Centre (RERC) of Hanoi University, Ho Chi Minh City University
and Technology and Solar Laboratory of Institute of Energy were the pioneer institutions in
conducting research on SWH applications in the country. Without any exclusive marketing for
uptake of the technology, in span of 16 years the total installation in the country hit 3.8 million
(70% of installations in South Vietnam). The annual sales during 2010 are approximately 40,000
units of which 85% have capacity between 150 and 200 Litres. The Government of Vietnam has
started strategic planning to further harness solar energy and reduce the electrical water heating
load. Vietnam aims to develop 1,760,000 m2 of collector area for SWH by 2015 and 9,100,000
m2 of collector area by 2025. Various projects are initiated for promotion of SWH systems in
Vietnam to meet the country targets and a few of them are discussed below.
1. Ho Chi Minh City Program: Energy Department of Ministry of Industry & Trade (MoIT)
jointly with Electricity of Vietnam (EVN) and the city’s People’s Committee has developed a
financial incentive program. Under the program, about 30,000 Evacuated Tube Collector
type SWH systems will be funded during August 2008 and July 2013 at a flat discount of
USD 52 per system.
a. Start and end date: August 2008 – July 2013
b. Number of SWH systems to be installed under the program: 30,000
c. Type of SWH system: Evacuated tube collector type SWH systems
d. There is no mandatory certification for the product to avail financial assistance under
this program
e. Awareness programs: Manufacturers campaign through newspaper advertisements
and product displays at exhibitions
f. Financial scheme: A flat discount of USD 52 per system installed.
g. Success factors: This discount made the cost of SWH system affordable especially to
new residential buildings and motivated customers at great scale.
2. Vietnam Energy Efficiency Program: Energy Department of MoIT with services from Son
Ha International Corporation has started a pilot project in 2010 to install solar water heaters
with industrial scale in 12 border posts of 2 provinces (Thua Thien Hue and Hai Phong) of
the country with capacities 15 to 20 thousand litres. The hot water is for the use of border
posts working activities and soldier’s homes.
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a. Start and end date: 2010
b. Number of SWH systems to be installed under the program: 15 to 20 thousand litres
in 12 border posts and 2 provinces
c. Type of SWH system: Evacuated Tube Collector type SWH systems
d. There is no mandatory certification for the products installed under the program
e. Awareness programs were not undertaken
f. Financial scheme: Cost sharing by Energy department of MoIT
g. Success factors: not known
3. Promoting use of SWH in urban communities of Hanoi: Under Small Grants Programme
of UNDP, Women’s Union of Hanoi City is implementing a demonstration project in Hai Ba
Trung District in Hanoi. The project operational phase is October 2009 to April 2011. The
immediate objectives of the program are:
a. To introduce and develop demonstration model for use of solar water heaters in
households and public service sector with appropriate design, installation and
operation protocols.
b. To enhance awareness and strengthen knowledge and technical capacity for the
community, the local government and social organizations so that the models can be
replicated.
c. Document lessons learnt and produce guidelines on the demonstration models to
enable nation-wide multiplication.
4. Develop strategic approach to increase penetration of SWH in Vietnam: International
Copper Association Southeast Asia Ltd as part of its electrical energy efficiency programs
(designed to maximize copper's contribution to energy conservation, environment
friendliness, safety and effectiveness of sustainable generation, transmission, distribution
and usage of electrical energy) along with MoIT and Energy Conservation Centre of Ho Chi
Minh City has planned to develop programs for SWH promotion during and after 2010.
Below is a chart to summarize various organizations involved at various stages development/
promotion of SWH systems in the five countries. Where ever none of the organizations are
dedicated to the particular identified area of SWH development, it is recommended to identify
such organizations in these countries.
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Apex body SEDA SLSEA DEDE UPSL EVN, MoIT
Research &
Testing
RERC, CMES,
IFRD, LGED
NERD SRET, AIT,
CMUTT, CMU
RERC
Marketing LGED TSTA ECC of
HCMC
Training DEDE
Standards &
Certification
TISI BPS
Note: Abbreviations of the institutions and web links are in Annexure V
Summary:
Of the five regional countries chosen in the framework of the SSFA, Thailand and Vietnam have
been able to successfully complete/ implement large scale promotional activities for SWH
systems. This made the installation of solar energy for water heating purposes popular. In case
of Bangladesh, Sri Lanka and Philippines no such projects were taken up. These countries
should undertake nationwide programmes to demonstrate that SWH in residential, commercial
and industrial environments as a technically feasible proposition and economically attractive one
too.
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10 BARRIERS
There are many barriers hindering the adoption of solar water heaters for hot water generation in
domestic, commercial and industrial establishments in these regional countries. The experiences
are described below.
10.1 Bangladesh
Political/Policy/Technical Barriers
a. Lack of legal, regulatory and policy framework for commercializing solar water heaters. Most
of the efforts are primarily technology-driven and focus on R&D, rather than emphasizing the
promotion and encouragement of commercialization and private sector involvement.
b. Lack of financial incentive/subsidy policies to encourage use of solar water heaters –
Bangladesh being a developing country with about quarter of population below poverty line,
the high initial cost is difficult to bear both for an individual or a commercial/industrial
enterprise.
c. Lack of standards and certifications for better quality control of both in-country and imported
SWH systems, leading to low confidence levels at suppliers end for promising uninterruptible
services to the customers.
d. Lengthy and difficult process for getting permissions and approvals for setting up both
manufacturing and testing facilities.
e. Necessary action plan to promote SWH as planned in the REP 2008 of Bangladesh is not
yet formulated.
f. Limited knowledge and research studies to assess existing capacities and requirements of
water heating applications, their energy sources and potential for meeting the needs with
solar energy. In order to take forward the current research efforts in the country (regular
sunshine data monitoring, testing facilities at RERC, CMES), an in-depth study of kind
mentioned above is useful.
Financial Barriers
a. No financing product is available with local financial institutions dedicated to promotion of
solar water heaters. The focus of the financial institutions in the country with respect to RETs
is mainly around Solar Home Lighting (SHS) systems in far-flung rural areas.
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b. Government budget resources for subsidizing SWH are limited as the demand for financing
other national priority areas such as poverty elimination, health, education, and disaster
management needs urgent attention.
c. Getting the benefits of economies of scale – reduced initial costs of SWH systems is way far
to achieve in the country.
Social Barriers
a. Lack of awareness to benefit from solar energy for water heating applications in public,
industry, utility, financial institutions and policy-makers.
b. Availability and access to existing renewable energy resource information is not efficient.
Also a central information point does not exist and information is scattered among various
organizations.
c. Lack of public awareness in understanding the economics of SWH systems (initial costs, life
cycle costs, benefits etc.).
d. Limited expertise in business management and marketing skills.
e. Lack of expertise and services in system design, installation, operation and maintenance of
SWH systems.
10.2 Sri Lanka
Political/Policy/Technical Barriers
a. A long-term strategic plan is missing for Sri Lanka to develop SWH market in the country.
b. The high Total Dissolved Solids (TDS) levels present in water available in mineral rich Sri
Lanka requires a very high quality material made SWH systems. Cost of SWH unit is directly
proportional to the quality of raw material and manufacturing standards.
Financial Barriers
a. High cost of SWH units for a reasonably quality product.
Social Barriers
a. With lack of mandatory quality checks, the poor performance of low quality imported
products may become a threat to the development of SWH industry as the customer lose
faith on the technology.
b. Lack of awareness of the customers to judiciously choose and optimize the cost and quality
of the products.
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10.3 Thailand
Political/Policy/Technical Barriers
a. There are no mandatory national standards along with performance tests and, as result, data
to compare the performance of different products are unavailable.
b. Non-transparent market and the performance of “cheap” components and of “expensive”
components cannot be compared.
c. High cost of the systems making it financially unviable for installation. Some of the suppliers
do rely on “Made to Order” manufacturing.
d. Quality labels and certification does not exist, so high quality products cannot be recognized
in the market.
e. “High” technology standards versus “low” investment costs. Customers did want to save
energy, but even more they wanted to save investment costs. Trust and faith on technology
standards are missing.
f. Lack of knowledge of the customer and poor regulation on the quality of input cold water.
g. The knowledge for correct planning, design, selection of appropriate components and
material as well as correct installation of solar systems is not available with the
suppliers/manufactures of solar thermal systems
h. Lack of training and formal education for the suppliers/manufacturer.
i. Lack of skilled technicians for proper installation, repair and maintenance.
j. Non- engineering companies have entered the solar thermal market and do not know the
standard practice of detail engineering for such systems.
k. The suppliers are not willing to invest in the purchase of simulation software for optimal
design of components of the system.
l. Some materials for installation and repair such as insulation or controllers are not available in
local hardware stores, so they do not get replaced.
m. Solar thermal technology is considered a “simple” low technology, so the supplier and the
technician do not care too much about the technical requirements and standards to be
applied.
n. Low hot water demand in domestic sector and in low budget hotels. Therefore this customer
group is not suitable for solar thermal systems in Thailand
o. Lack of early integration of SWH into building design. As a solar water heater system
requires precise piping work, the system must be brought in the early stage of the building
construction so that necessary hot water pipes can be properly designed and installed.
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p. The heat generation from solar power is not reliable. A backup should therefore be installed
in order to guarantee the hot water supply even during periods of low solar gains.
Financial Barriers
a. Relative high investment costs for solar thermal systems compared to electrical heater or
LPG boilers, lead to pay-back periods, which are sometimes higher than acceptable to
customers.
b. Even after government subsidy and tax benefits, the cost of the system is high especially for
retrofitting case.
Social Barriers
a. Lack of awareness to potential users. There are hardly any awareness activities,
demonstration activities and promotion activities for solar thermal applications in Thailand.
Customers do not know the benefit of the systems or are wrongly informed by perceptions or
bad experience of old systems installed 20 years ago.
b. Proper monitoring of the installed systems is missing, with which the customers can be
guaranteed proper services and energy savings.
10.4 The Philippines
Political/Policy/Technical Barriers
a. The country targets to become manufacturing hub for solar photovoltaic and the government
have no plans to promote SWH systems yet.
b. The present SWH installations are implemented out of personal interest of the commercial
firms or individuals and there is no government support.
Financial Barriers
a. Higher cost of the SWH systems are prohibiting a percentage of customers from installing
the systems.
Social Barriers
a. Hot water does not come under primary need of the most of the medium or low income
households and it is considered as a luxurious service thus the limited demand.
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10.5 Vietnam
Political/Policy/Technical Barriers
a. Limited knowledge on continuous technology improvements and research on SWH systems
b. Technological issues like improper installation or poor positioning of collector panels leading
to inefficient solar energy absorption
c. Compatibility issues with existing electricity/gas water heating systems in cases where
existing electricity/gas water heating system are to be used for backup water heating instead
of providing electricity backup in the storage tank of SWH system.
d. Lack of adequate policy support and documented evaluation of performance of SWH
systems over a long run.
e. Quality control tests, performance tests and standards are does not exist.
Financial Barriers
a. Cost of purchase and installation are not affordable to all and flat plate SWH systems are
exorbitantly high.
b. Lack of financially viable innovative schemes/plans for promotion of SWH
c. Banking services/financial products for purchase of SWH systems is not developed
Social Barriers
a. Limited community awareness and involvement
b. Knowledge to understand technical aspects of installations and maintenance
The quick summary of barriers identified in the five regional countries is tabulated below.
Political/Policy/Technical
barriers
Financial barriers Social barriers
Banglades
h
• No legal, regulatory and policy
framework
• No focal organization
/information is scattered
• No product standards or quality
checks
• Lengthy process for set up of
manufacturing/testing facilities
• Delay in formulation of REP
2008
• High initial costs
• Unavailability of
finance from
financial
institutions
• Insufficient
government
resources to
finance SWH units
• No public
awareness
• Need for expert
system
designers,
installers
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Political/Policy/Technical
barriers
Financial barriers Social barriers
Sri Lanka • No long-term strategic plan
• In-significant government
involvement in promotion of the
technology
• No quality control on
manufacturing/imports
• High initial costs
• Lack of public
awareness to
judge quality
products versus
initial costs
The
Philippines
• No government involvement in
promotion of SWH
• High initial costs
• Hot water is
not primary
need
• Lack of public
awareness
Thailand • Product standards are not
mandatory
• Non-transparent market
• No certification or quality
labeling
• Improper design and installation
practices
• High initial costs
• Subsidy scheme is
discontinued
• Improper/insuf
ficient public
awareness
programs
Vietnam • Limited knowledge on
technology improvements
• Improper installations/system
design
• No long-term policy support
• No product standards
• Flat plate
collectors are
costly
• Unavailability of
finance from
financial
institutions
• Limited public
awareness to
understand
technical and
economic
aspects
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11 RECOMMENDATIONS
The following table summarises the present condition of SWH in these countries under reference and the recommendations for each.
Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Status on
number of
installation
Present Condition No estimate
available
80,000 systems.
No estimate on
covered collector
area
Collector area:
50,000 m2 (1996)
No recent
estimate on the
number of
installations/
collector area
433 systems
(2001) No recent
estimate on the
number of
installations/
collector area
3.8 million
systems (2006)
No estimate on
covered collector
area
Recommendation
Activity to find
status of the
technology
through
combination of
surveys,
sales/year,
imports/year etc.
Distribution of
size of systems
has to be
maintained along
with the number
in association
with local
manufacturers
and suppliers
Recent estimate
for market status
should be made.
Through
combination of
surveys,
sales/year from
manufacturers,
imports/year from
suppliers this
numbers should
be estimated.
Along with the
number of
systems sold,
collector area
information
should also be
recorded.
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Design and
feasibility
studies,
installation
practices
Present Condition
Use of only
prefabricated
systems, no
knowledge of
simulation
software for
system design
Large use of
prefabricated
systems, few
manufacturers
aware of building
customized large
systems, no
knowledge of
simulation
software for
system design
Expertise to
install custom
built large
systems is
improving and
system design
using simulation
software is
available
Large use of
prefabricated
systems, few
manufacturers
aware of building
customized large
systems, no
knowledge of
simulation
software for
system design
Large use of
prefabricated
systems, few
manufacturers
aware of building
customized large
systems, system
design using
simulation
software
packages is
under practice
Recommendation
Institute a plan to
train planners and
installers the
conducting
design and
feasibility studies
and the use of
simulation
software.
Institute a plan to
train planners and
installers in
conducting
design and
feasibility studies
and the use of
simulation
software.
As the trainers
are trained now,
an accredited
certification
program should
be introduced for
planners and
installers in
conducting
design and
feasibility studies
and the use of
simulation
software.
Institute a plan to
train planners and
installers the
conducting
design and
feasibility studies
and the use of
simulation
software.
Institute a plan to
train planners and
installers the
conducting
design and
feasibility studies
and the use of
simulation
software.
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Training for
planners,
installers
Present Condition Not available Not available
2 training
programs (2010 &
2011)
Not available Not available
Recommendation
Institute a plan to
train planners and
installers on best
practices
Institute a plan to
train planners and
installers on best
practices
Institute a plan to
train planners and
installers on best
practices
Institute a plan to
train planners and
installers on best
practices
Institute a plan to
train planners and
installers on best
practices
Incentives
on tax
duties
Present Condition
Exempt from
custom duties
and Value Added
Tax (VAT)
Not available
100% tax
exemption is
applicable from
1st-8th year and
50% tax
exemption from
9th-13th of
product purchase.
The benefits
include: 7 year
Income Tax
Holiday (ITH), 10
year Tax and
Duty-free imports,
0% VAT
transactions,
100% Tax Credit
on components
Not available
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Recommendation
See if further or
other tax
concessions are
necessary.
Suitable Tax exemptions
should be
provided
depending upon the commercial
needs of the
business community
See if further or
other tax
concessions are
necessary.
See if further or
other tax
concessions are
necessary.
Suitable Tax
exemptions should be
provided
depending upon
the commercial needs of the
business
community if these are not
available now.
Potential
markets
Present Condition Residential,
resorts, tanneries
Residential,
hotels, resorts
Residential, hotels, resorts,
hospitals,
industries
Residential,
hotels, resorts
Residential,
hotels, resorts, hospitals
Recommendation
Seek other potential markets
such as
institutions, hospitals, textile
mills, and
industrial users.
Seek other potential markets
such as
institutions, hospitals, textile
mills, and
industrial users.
Seek other
potential markets
such as institutions,
residential users.
Seek other
potential markets such as
institutions, textile
mills, and industrial users.
Seek other
potential markets such as
institutions, textile
mills, and industrial users.
Type of
SWH
systems
Existing Evacuated tube,
passive, open
systems
Flat plate type,
passive, open
circuit systems
Flat plate type,
open circuit,
active systems
Evacuated tube/flat plate
collector type,
passive, open systems
Evacuated tube,
open/closed circuit, passive
systems
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Recommendation
Promote the
system that is suitable for the
application.
Promote the
system that is suitable for the
application.
Promote the
system that is suitable for the
application.
Promote the
system that is suitable for the
application.
Promote the
system that is suitable for the
application.
Factors for
financial
viability
Present Condition
Availability of reliable electricity
supply, and unit
cost of fuel saved
Availability of
reliable electricity supply, return on
investment and
unit cost of fuel saved
Return on investment and
unit cost of fuel
saved
Return on
investment, incoming
temperature of
water and unit cost of fuel saved
Return on
investment, incoming
temperature of
water and unit cost of fuel saved
Policy
intervention
s
Present Condition
Renewable
Energy Policy
(REP) 2008
mentions to
promotion of
SWH, necessary
planning is
missing
Not available
Long term
alternative energy
planning (2008-
2022) sets phase
wise targets
Not available
National Strategic
Program on
Energy Savings
and Effective Use
(2005) identifies
SWH as a
promising
measure to meet
targets of
Vietnam National
Energy Efficiency
Program
(VNEEP)
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Recommendation Plan for the implementation of
the Policy
Establish a policy
if it does not exist and then
establish
mechanism to
review targets and to remove
bottlenecks
Establish
mechanism to review targets
and to remove
bottlenecks
Establish a policy
if it does not exist and then
establish
mechanism to
review targets and to remove
bottlenecks
Establish
mechanism to review targets
and to remove
bottlenecks
Product
standards &
certification
Present Condition Not available Not available Standards available but not
mandatory55
Standards available but not
mandatory56
Not available
Recommendation
First establish
Standards
borrowing them if
necessary from
other countries
with similar
conditions of
climate, economy
etc., and then set
up a mechanism
to implement the
standards.
First establish
Standards
borrowing them if
necessary from
other countries
with similar
conditions of
climate, economy
etc., and then set
up a mechanism
to implement the
standards.
Set up a
mechanism to
implement the
standards.
Set up a
mechanism to
implement the
standards.
First establish
Standards
borrowing them if
necessary from
other countries
with similar
conditions of
climate, economy
etc., and then set
up a mechanism
to implement the
standards.
55 Website: “Thai Industrial Standards Institute (TISI)”, n.d., http://www.tisi.go.th/eng/index.php.
56 Source: A representative from Bureau of Product Standards, Philippines, http://www.bps.dti.gov.ph/
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
In-country
testing
facilities
Present Condition
Independent
testing facility, but
not to test
individual SWH
systems of a
manufacturer57
Available, but not
functioning on full
scale58
Available, but
intermittent
functioning delays
product testing59
Independent
testing facility, but
not to test
individual SWH
systems of a
manufacturer60
Not available
Recommendation
Establish
independent
testing facilities
and make them
available to all
manufacturers.
Establish
independent
testing facilities
and make them
available to all
manufacturers.
Establish
independent
testing facilities
and make them
available to all
manufacturers.
Establish
independent
testing facilities
and make them
available to all
manufacturers.
Establish
independent
testing facilities
and make them
available to all
manufacturers.
57 Sardul Islam and Mazharul Islam, “Status of Renewable Energy Technologies in Bangladesh”, n.d.,
http://www.isesco.org.ma/ISESCO_Technology_Vision/NUM01/A.K.M.%20Sadrul%20Islam/A.K.M.%20Sadrul%20Islam.pdf.
58 Source: A representative from Alpha Thermal Systems Pvt Ltd, Sri Lanka
59 Soltherm Thailand project report funded by EU-Thailand Economic Cooperation Small Project Facility (EU-SPF)
60 Reference: IIEC Branch office in Manila
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Marketing &
awareness
programs
Present Condition
No specific
marketing and
awareness
programs
Manufacturers
campaign through
newspaper
advertisements,
seminars,
conference-cum-
exhibitions
Road shows and
awareness
campaigns by
DEDE, pamphlets
distribution by
Thai Solar
Thermal
Association (STA)
No awareness or
marketing
programs
Newspaper
advertisements,
conference-cum-
exhibitions,
awareness
programs by
manufacturers
Recommendation*61
Establish a well-
designed
marketing
programme in
consultation with
manufacturers.
Establish a well-
designed
marketing
programme in
consultation with
manufacturers.
Establish a well-
designed
marketing
programme in
consultation with
manufacturers.
Establish a well-
designed
marketing
programme in
consultation with
manufacturers.
Establish a well-
designed
marketing
programme in
consultation with
manufacturers.
Accredited
test
laboratories
Present Condition
Not available for
testing individual
manufacturer’s
products
Not available for
testing individual
manufacturer’s
products
Available62 Available Not available
61
* Note: Links to some marketing programs and videos used for promotion of SWH in other countries are attached in Annexure IV.
62 Source: Information received from “STA - Solar Thermal Association”, n.d., http://www.stasolar.org/.
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Recommendation
Upgrade the
services at the
existing testing
facilities for
testing individual
manufacturer’s
products on
regular basis.
Upgrade the
services at the
existing testing
facilities for
testing individual
manufacturer’s
products on
regular basis.
Upgrade or
expand the
testing facilities to
ensure
completion of
testing in short
time
Upgrade or
expand the
testing facilities to
ensure
completion of
testing in short
time
Develop testing
facilities for
product testing in
the country
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11.1 Bangladesh
The recommendations for better penetration of SWH technology in the country in the order of
priority are listed below.
• Establishment of a dedicated division/department under Power Cell, Government of
Bangladesh to act as focal point for nationwide developmental activities of SWH.
• The scattered/individual research activities of various academic institutions/government
organizations are to be assembled and assessed, which later will be the basis for
development of long-term plan or policy for SWH.
• Activity to find status of the technology through combination of surveys, sales/year,
imports/year etc.
• In support to the REP 2008, a strategic long-term plan for 15-20 years has to be
developed. The aspects to be covered under the plan can be:
o Encourage in-country manufacturing using experiences of research
institutions
o Establish independent testing facilities and make them available to all
manufacturers.
o To establish Standards first by borrowing them if necessary from other
countries with similar conditions of climate, economy etc., and then set up a
mechanism to implement the standards.
o To institute a plan to train planners and installers the conducting design and
feasibility studies, best practices and the use of simulation software.
o To seek other potential markets such as institutions, hospitals, textile mills,
and industrial users.
• Establish a well-designed marketing programme in consultation with manufacturers
and make plans to promote SWH with on-going Solar Home System activities in the
country.
• A pilot program should be implemented to cover a minimum of 1000 m2 collector area
and disseminate the results throughout the country widely to motivate the other
customers.
11.2 Sri Lanka
The recommendations for better penetration of SWH technology in the country in the order of
priority are listed below.
• Till-day SWH installations credit majorly goes to the NERD and NERD assisted SWH
manufacturers, who are promoting the technology themselves and proving to the
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clients. If this is supported by SLSEA, the apex body for development of EE & RE in
Sri Lanka, it’s no longer difficult to expect an aggressive SWH market growth in the
country.
• Considering an approximate 80,000 installations in place in Sri Lanka and high TDS
levels in cold water, its need of the hour to develop and mandate product standards,
quality labels and certification for local manufactured/imported units. The product
standards are to be made mandatory. First establish Standards borrowing them if
necessary from other countries with similar conditions of climate, economy etc., and
then set up a mechanism to implement the standards.
• Establish independent testing facilities and make them available to all manufacturers.
• Develop suitable Tax exemptions depending upon the commercial needs of the
business community.
• In addition to keeping track of no. of installation in a year, distribution of size of systems
has to be maintained along with the number in association with local manufacturers
and suppliers.
• Institute a plan to train planners and installers in conducting design and feasibility
studies, industry best practices and the use of simulation software.
• Seek other potential markets such as institutions, hospitals, textile mills, and industrial
users.
• In parallel, establish a policy if it does not exist and then establish mechanism to review
targets and to remove bottlenecks. Policy level intervention to make SWH installation
mandatory in new constructions.
• A pilot program should be implemented to cover a minimum of 5000 m2 collector area
and disseminate the results throughout the country widely to motivate the other
customers.
11.3 Thailand
The recommendations for better penetration of SWH technology in the country in the order of
priority are listed below.
• Nationwide targets and long-term plan has to be developed to proceed with further
development of SWH market in Thailand.
• In addition to keeping track of no. of installation in a year, distribution of size of systems
has to be maintained along with the number in association with local manufacturers
and suppliers.
• The major barrier in Thailand is – the customers lost faith on the technology because of
past installations which were improperly designed and installed and stopped working
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in a few years. So, the recent efforts of DEDE to train solar system installers and
engineers have to be promoted to ensure efficient installations in future. Once these
Train-the-Trainer programs are completed, an accredited certification program should
be introduced for planners and installers in conducting design and feasibility studies
and the use of simulation software.
• An efficient monitoring and evaluation program of the past and recent installations has
to be conducted. The results should be widely disseminated through marketing and
awareness programs, to showcase the customers and help in regaining faith on the
technology. Establish a well-designed marketing programme in consultation with
manufacturers.
• Establish independent testing facilities and make them available to all manufacturers.
• Set up a mechanism to implement and make the product standards mandatory.
11.4 The Philippines
The recommendations for better penetration of SWH technology in the country in the order of
priority are listed below.
• A strategic long term plan has to be developed to promote SWH in the Philippines. The
plan should aim to implement capacity building, awareness, research & development
of manufacturing programs with planned policy and regulatory control for quality
control of the systems. The country can potentially become manufacturing hub for
SWH manufacturing, as it has already become a manufacturing hub for solar PV,
understanding the technical expertise it’s easy to develop manufacturing of SWH
systems.
• Through combination of surveys, sales/year from manufacturers, imports/year, total
number of installation and distribution of sizes has to be estimated and recorded on
yearly basis.
• Seek other potential markets such as institutions, textile mills, and industrial users.
• Establish a nationwide policy and a mechanism to review targets and to remove
bottlenecks.
• Establish independent testing facilities and make them available to all manufacturers.
• Set up a mechanism to implement the product standards may be through incorporating
them into building by-laws.
• Institute a plan to train planners and installers the conducting design and feasibility
studies, industry best practices and the use of simulation software.
• Establish a well-designed marketing programme in consultation with manufacturers.
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• A pilot program should be implemented to cover a minimum of 1000 m2 collector area
and disseminate the results throughout the country widely to motivate the other
customers.
11.5 Vietnam
The recommendations for better penetration of SWH technology in the country in the order of
priority are listed below.
• As the country already started executing pilot projects either through technical
assistance or with some financial incentives, should be followed by well
documentation of the findings from the projects that can be used extensively for
marketing of SWH and meet targets set by Vietnam Renewable Energy Master Plan.
Establish mechanism to review targets and to remove bottlenecks.
• Product standards are missing in the country, which in future may become threat to the
industry as low quality products flow into the country. First establish Standards
borrowing them if necessary from other countries with similar conditions of climate,
economy etc., and then set up a mechanism to implement the standards.
• Policy level intervention to make SWH installations mandatory in new constructions or
incorporated in National Building Codes.
• Establish independent testing facilities and make them available to all manufacturers.
• A central body to act as an apex body to various City Energy Management centres has
to be established exclusively for development of solar thermal industry.
• Financial incentive programs are to be continued, till the market gains the momentum.
• Establish a well-designed marketing programme in consultation with manufacturers.
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ANNEXURE I
Bangladesh
Daily hot water requirement 200 Lts/day
No. of days of hot water requirement/year 150 Days/year
Type of fuel Electricity LPG Kerosene Fuel oil
Residential Commercial Industrial
Cost of fuel63 3.85 Tk/kWh 6.03 Tk/kWh
4.6
Tk/kWh
68
Tk/Kg
44.15
Tk/Litre 26 Tk/Litre
Calorific value 3600 kJ/kWh 3600 kJ/kWh
3600
kJ/kWh
51830
kJ/Kg
35000
kJ/Litre
41200
kJ/Litre
Efficiency of
heating 90% 90% 90% 90% 60% 90%
Fuel
consumption/day 9 kWh 9 kWh 9 kWh 0.6 Kg 1.4 Litre 0.8 Litre
Fuel cost
(USD/year) 76 119 90 93 134 45
63
Tariff. Available at: http://www.bpdb.gov.bd/tariff.htm [Accessed December 15, 2010].
Govt. frees petrol, diesel from pricing controls, hikes kerosene, LPG prices. Available at:
http://netindian.in/news/2010/06/25/0006951/govt-frees-petrol-diesel-pricing-controls-hikes-
kerosene-lpg-prices [Accessed September 17, 2010].
Energy Bangla - Bangladesh: LPG, Furnace Oil Prices Slashed by 13-15 pc. Available at:
http://www.energybangla.com/index.php?mod=article&cat=EBReport&article=1645 [Accessed
September 17, 2010].
Table 17 – Assumptions in calculation of simple payback period for SWH system
Recommendation: Installation of solar water heating system
Capacity of flat plate collector type solar water heating system
for 6 persons 200 Lts/system
Costs & Benefits:
Total cost of 200 litres solar water heating system 942 USD
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Sri Lanka
Daily hot water requirement 225 Lts/day
No. of days of hot water requirement/year 150 Days/year
Type of fuel Electricity LPG Kerosene Fuel oil
Residential Commercial Industrial
Cost of fuel64 14.37
SLR/kWh 16.8
SLR/kWh 14.6
SLR/kWh 113.68 SLR/Kg
52.5 SLR/Litre
77 SLR/Litre
Calorific value 3600
kJ/kWh 3600 kJ/kWh
3600
kJ/kWh
51830
kJ/Kg
35000
kJ/Litre
41200
kJ/Litre
Efficiency of
heating 90% 90% 90% 90% 60% 90%
Fuel
consumption/day 10.2 kWh 10.2 kWh 10.2 kWh 0.7 Kg 1.6 Litre 0.9 Litre
Fuel cost
(USD/year) 85 133 102 104 151 50
64 Electricity Tariff rates in Sri Lanka effective from 1st November 2008. Available at:
http://www.ceb.lk/Tariff/tarrif%202008.htm [Accessed September 1, 2010].
Govt. frees petrol, diesel from pricing controls, hikes kerosene, LPG prices. Available at:
http://netindian.in/news/2010/06/25/0006951/govt-frees-petrol-diesel-pricing-controls-hikes-
kerosene-lpg-prices [Accessed September 17, 2010].
Table 18 – Assumptions in calculation of simple payback period for SWH system
Recommendation: Installation of solar water heating system
Capacity of flat plate collector type solar water heating system
for 6 persons 225 Lts/system
Costs & Benefits:
Total cost of 225 litres solar water heating system 1400 USD
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Thailand
Daily hot water requirement 200 Lts/day
No. of days of hot water requirement/year 150 Days/year
Type of fuel Electricity LPG Fuel oil
Residential Commercial
Cost of fuel 3.27 Baht/kWh 2.69 Baht/kWh 16.7 Baht/Kg 17.5 Baht/Litre
Calorific value 3600 kJ/kWh 3600 kJ/kWh 51830 kJ/Kg 41200 kJ/Litre
Efficiency of heating 90% 90% 90% 90%
Fuel consumption/day 9 kWh 9 kWh 0.6 Kg 0.8 Litre
Fuel cost (USD/year) 143 287 124 163
Vietnam
Daily hot water requirement 200 Lts/day
No. of days of hot water requirement/year 150 Days/year
Type of fuel Electricity LPG Kerosene Fuel oil
Residential Commercial Industrial
Table 19 – Assumptions in calculation of simple payback period for SWH system
Recommendation: Installation of solar water heating system
Capacity of flat plate collector type solar water heating system
for 6 persons 200 Lts/system
Costs & Benefits:
Total cost of 200 litres solar water heating system 1,034 USD
Table 20 – Assumptions in calculation of simple payback period for SWH system
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Cost of fuel65 3.85
Dong/kWh
6.03
Dong/kWh
4.6
Dong/kWh
68
Dong/Kg
44.15
Dong/Litre
26
Dong/Litre
Calorific value 3600 kJ/kWh 3600 kJ/kWh 3600
kJ/kWh 51830 kJ/Kg
35000 kJ/Litre
41200 kJ/Litre
Efficiency of
heating 90% 90% 90% 90% 60% 90%
Fuel
consumption/d
ay 9 kWh 9 kWh 9 kWh 0.6 Kg 1.4 Litre 0.8 Litre
Fuel cost
(USD/year) 100 138 79 111 167 96
65
Electricity of Vietnam website: www.evn.com.vn
Recommendation: Installation of solar water heating system
Capacity of flat plate collector type solar water heating system
for 6 persons 200 Lts/system
Costs & Benefits:
Total cost of 200 litres flat plate collector type solar water
heating system 1770 USD
Total cost of 200 litres evacuated tube type solar water
heating system 535 USD
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ANNEXURE II
Key components of SWH system
Any SWH system broadly comprises of one or more collectors, hot water storage tank, piping
and water circulation components.
Solar Collectors
The component which absorbs the solar irradiance incident on the surface and transfers to
the fluid is called solar collector. The collectors are available in different configurations using
different techniques to absorb solar irradiance. The following table shows different types of
solar thermal collectors and the temperature ranges achievable. Flat plate (glazed and
unglazed) and evacuated tube type collectors are popularly used for service water heating
applications in domestic, commercial and industrial sectors.
Configuration Picture Collector Achievable
Temp °°°°C
Solar Pond 30-70
Unglazed Flat Plate 40-60
Glazed Flat Plate 60-120
Table 21 – Types of solar thermal collectors
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Configuration Picture Collector Achievable
Temp °°°°C
Evacuated Tube 50-180
N/A
Fix Concentrated 100-150
Parabolic Trough 150-350
Parabolic Dish 250-700
Central Receiver 500-3000
Flat plate type solar collectors
Flat-plate collector consists basically of an insulated metal box with or without a glass or
plastic cover (the glazing) and a dark-coloured absorber plate. Solar radiation is absorbed by
the absorber plate and transferred to a fluid that circulates through the collector in tubes.
Circulating fluid can be either air (air based collector) or water (water based collector). Flat-
plate collectors heat the circulating fluid to temperatures best suited to applications where the
demand temperature is 30-70°C.
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Liquid-based collectors may be glazed (with glass or plastic cover) or unglazed (without
plastic cover). Glazed liquid collectors are the commonest type of solar collector for providing
domestic and commercial water and for heating indoor swimming pools and unglazed
collectors are most often used for heating outdoor pools.
Absorber plates are commonly painted with "selective coatings," which absorb and retain
heat better than ordinary black paint. Absorber plates are usually made of metal - typically
copper or aluminium - because the metal is a good conductor of heat. Copper is more
expensive, but is a better conductor and less prone to corrosion than aluminium.
Flat collectors can be mounted in a variety of ways, depending on the type of building,
application, and size of collector. Options include mounting on a roof, in the roof itself, or
free-standing.
Evacuated tube type solar collectors
Evacuated tube collectors are usually made of parallel rows of transparent glass tubes. Each
tube contains an outer glass tube and inner glass or metal tube attached to a fin as the
absorber. Air is removed, or evacuated, from the space between the two tubes to form a
vacuum, which eliminates conductive and convective heat loss. Under the right set of
circumstances, these collectors can achieve 50-180°C with energy conversion efficiency as
high as 90%. They can be an effective solution especially in regions where it is often cloudy.
Evacuated tube collectors works in two ways – Direct flow and Heat pipe.
Figure 25 – Flat plate solar collector
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Direct flow evacuated tube collector consists of a group of glass tubes inside each of which is
a flat or curved Aluminium fin attached to a metal (usually copper) or glass absorber pipe.
The fin is covered with a selective coating that absorbs solar radiation well but inhibits
radiative heat loss. The heat transfer fluid is water and circulates through the pipes and gets
heated up.
Direct flow Evacuated tube Heat pipe Evacuated tube
Heat pipe evacuated tube consists of a metal (copper) heat pipe, to which is attached a black
copper absorber plate, inside a vacuum-sealed tube. The heat pipe is hollow and the space
inside is evacuated. Inside the heat pipe is a small quantity of liquid, such as alcohol or
purified water plus special additives. The vacuum enables the liquid to boil (i.e. turn from
liquid to vapour) at a much lower temperature than it would at normal atmospheric pressure.
When solar radiation incidents on the surface of the absorber, the liquid within the heat tube
quickly turns to hot vapour rises to the top of the pipe. Water flows through a manifold and
picks up the heat, while the fluid in the heat pipe condenses and flows back down the tube
for the process to be repeated. These must be mounted with a minimum tilt angle of around
25° in order to allow the internal fluid of the heat pipe to return to the hot absorber.
Hot water storage tank
Storage tank is one of the key components in SWH system as it enables hot water supply
when solar energy is not available. Storage tanks are generally low pressure storage tanks.
The inner most layer of storage tanks are generally made of 100% stainless steel, then
covered by layer of Galvanized Iron/ Aluminium-Zinc coated steel and insulated with
polyurethane or fiberglass. Capacity of each storage tank in thermo-syphon systems ranges
Figure 26 – Working of Direct flow and Heat pipe Evacuated tube collector
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from 160 litres to 1,000 litres depending upon hot water demand and building structure and
most of the times tanks are low pressure tanks. Sometimes, these thermo-syphon storage
tanks may be equipped with back up electric water heaters. Custom made high pressure
tanks are used in forced circulation systems. In some evacuated tube collector systems, a
heat exchanger is equipped inside the storage tank.
Piping and plumbing components
In addition to inlet and hot water supply pipe lines, various temperature sensors, controllers,
circulating pumps, pressure and temperature relief valve, air vent valve, tempering valves are
also a part of any solar water heating system.
Inlet water pipelines
The inlet water stored in a tank is supplied to the SWH through pipes generally made of
Galvanized Iron (GI), polyethylene (PE), Polyvinyl Chloride (PVC), cross-linked polyethylene
(PEX).
Hot water pipelines
Hot water pipelines carry hot water generated from the SWH to the point of end-use (water
fixture) where hot water required. The hot water pipes should be insulated to minimize heat
losses. These are generally made of copper, Galvanized Iron (GI), Polyvinyl Chloride (PVC),
Polyethylene (PE), cross-linked polyethylene (PEX).
Temperature sensors
Multiple numbers of temperature sensors are mounted at the water storage tank and the
solar collectors. These are useful in monitoring water temperatures and communicating with
a solar controller module.
Solar controller module
The function of solar controller module is to determine the appropriate time to circulate water
from the hot water tank through the solar collectors.
Circulating pumps
Circulating pump is used to pump and circulate water between the solar collectors and the
hot water storage tank in a forced circulation system. It is controlled by the solar controller
module.
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Temperature and pressure relief valve
Temperature and pressure relief valve is installed on the hot water storage tank for safety
purpose. The valve is to control both temperature and pressure, releasing the water to the
atmosphere at predetermined settings.
Air vent valve
Air vent valve is provided at the solar collectors to avoid the piping becoming air bound,
purging un-wanted air in the water circulation loop.
Anti-scald mixing valve
Anti-scald mixing valve is installed to maintain a determined safe water temperature by
automatically balancing unequal water pressures or by thermostatically mixing of unequal
water temperatures.
Design of SWH systems
There is no ‘universal’ design for solar water heating systems. Site survey is the first and
essential step in the design of any solar water heating system.
Site survey
Upon interest of the site owner for installation of solar water heating system, an expert from
the solar water heating service provider will visit the site. The objective of site survey is to
determine and evaluate the suitability of the site for installation of SWH by analysing various
factors including – Geographic region, water hardness, freezing issues (hilly areas of North
Vietnam), information on roof or ground for placing collectors, storage tank location
possibilities, load carrying capacity of the structure, hot water demand, current services for
hot water, shading and orientation of collectors etc. When the site location is found suitable
for installation of SWH, the service provider proceeds to the selection of right technology and
size of the system.
Selection of right technology
Generally, solar water heaters are available in two different technologies – flat plate collector
(FPC) and evacuated tube collector (ETC) technology. The technology selection of SWH
system depends on environment, and requirement of hot water, temperature gradient and
water quality.
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Temperature gradient: Ambient (outdoor) atmospheric air temperatures during night and
day play an important role in selection of the right technology. In cold climatic conditions
where ambient temperature reaches the freezing temperature of water, performance of heat
pipe based ETC based system is better as compared to FPC based system and direct
heating of water is not advisable in such conditions. It is recommended that the customer
should opt for heat pipe based ETC system or FPC based system with heat exchanger, if the
ambient temperature can go below 2ºC. The data from the Beijing Solar Energy Institute
given below illustrates this.
Temperature difference (ºC) 0 10 15 20 25 30 35
FPC efficiency 0.74 0.68 0.66 0.63 0.6 0.57 0.55
ETC efficiency 0.59 0.56 0.55 0.54 0.53 0.51 0.5
Temperature difference (ºC) 40 45 50 55 60 70 80
FPC efficiency 0.52 0.49 0.46 0.43 0.41 0.35 0.3
ETC efficiency 0.49 0.48 0.46 0.45 0.44 0.41 0.39
The temperature difference refers to the difference between inlet temperature of the fluid
inside the solar collector and temperature of outdoor air. As the temperature difference
decreases, FPC performance is better and when the temperature difference increases, ETC
performance is better. It is clear that FPC shall perform better in hot climatic conditions
whereas ETC shall perform better in cold climatic conditions.
Table 22 – Efficiency and performance of FPC and ETC
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Required temperature of hot water shall vary depending on application and accordingly
suitable technology must be selected. Following table provides general guideline for
selection of a suitable technology for various temperature applications.
Application Technology
Low temperature application from 40ºC up to 80ºC FPC / ETC
Medium temperature application from 80ºC to 120ºC Heat pipe ETC
High temperature application from 120ºC to 250ºC Solar concentrator
Low temperature commercial application (swimming pool) FPC / ETC
Water quality:
• Temporary hard water:
When temporary hard water is heated, dissolved material accumulates in different parts of
the collector system - called scale formation. Formation of scale is faster in FPC based
system than in ETC based system. In such kind of water, indirect heating through heat
exchanger is recommended. In case of indirect heating scale formation takes place at the
heat exchanger surface, which can be easily cleaned at periodic intervals. However, newer
technologies are coming in where inner surface of the collector tubes are treated with special
chemical to reduce scale formation.
• Permanent hard water:
Permanent hard water does not create problem in the performance of FPC or ETC based
system. However, if the system remains filled with water during summer and is overheated
continuously, concentration of the dissolved solids goes up causing formation of scale over a
period of time.
• Saline water:
Saline water corrodes mild steel, galvanized piping as well as stainless steel. Copper is not
affected to a great extent. Therefore, in saline atmosphere both FPC and ETC can be used.
However, stainless steel storage tank must be avoided. Instead mild steel storage tank can
be used with proper treatment and paint protection. Regular maintenance is necessary in
saline water conditions.
• Acidic water:
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Acidic water is corrosive to mild steel, galvanized iron, copper and other metals. It is also
corrosive to stainless steel if the water contains sulphides, chlorides and fluorides. ETC
based systems should be used in such water conditions. However, such water quality is rare.
• Water with high turbidity:
Turbidity in water is because of high amount of suspended solids. These solids will settle
down slowly when the water stays for a long time in any container. These suspended solids
are often charged particles, which gets neutralized slowly in contact with metals and slow
settling takes place. Turbid water should be avoided in solar water heating systems as it
affects both FPC as well as ETC systems. If turbidity in water cannot be avoided, periodic
maintenance must be carried out for reliable and smooth operation of the system.
• Treated water (after removing hardness):
Water treatment is usually done before feeding into the boiler in order to remove hardness.
However, some hardness removal processes makes water saline, in which scenario
precautions of using saline water should be taken care of for both ETC and FPC. Some
softening processes like the popular ion exchange process does not increase salinity and
thus both FPC and ETC can be used.
• Other environmental factors:
In areas where hail is common, ETC should not be used as glass tubes are likely to break
due to hail storm. Similarly in areas where animals like monkeys or cats frequent the solar
water heater installation area, glass tubes of ETC may break leading to system shutdown.
Therefore it is advisable not to use ETC based systems in these areas.
The summary of the points discussed above are listed in the following table.
Parameter Flat plate collector Evacuated tube
collector
Temperature difference below
50oC ���� �
Temperature difference above
50oC � ����
Temporary hard water Indirect heating through heat exchanger is
preferable
Permanent hard water ���� ����
Saline water ���� ����
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Parameter Flat plate collector Evacuated tube
collector
Acidic water � ����
Water with high turbidity � �
Treated water (after hardness
removal) ���� ����
Frequent hail storms ���� �
Sizing of SWH system
It is extremely important to select the correct size of the solar water heating system. The
SWH sizing needs to be done based on the hot water requirements and the hot water use
habits of the people in a family. An under-sized system is insufficient to meet the hot water
requirement; an oversized system will result in overheating of the water. As back-up system
is required for cloudy days, it may be possible to manage with marginal back up use in
extreme weather to optimize the size of the system for use in the rest of the year.
Hot water is required mainly in the winter season and therefore the system should be
designed to meet the hot water requirement during winter.
Installation of SWH systems
Performance of solar water heater will depend largely on the proper installation of the
system. Following the proper installation guide is also important for the safety of the installers
during installation and safety of the people post installation.
• Prefabricated solar systems: Prefabricated systems are sold as a single product under
a single brand name. These kinds of systems are sold as a package and are ready for
installation at sites. These are normally direct systems. If any of the components of the
prefabricated systems is altered, the system no longer remains a prefabricated system.
Generally these are available in the capacities of 75 to 1000 litres.
• Custom built solar systems: Custom built system is normally built with a set of
components to meet the specific demand of the customer. Here each individual
component is tested separately as per the standard and then test results are combined
together to review the complete system.
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Solar water heating systems can be Open or Closed (depending on means of water heating)
and Passive or Active (depending means of water circulation).
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Open solar water heating system:
An open system means the liquid that circulates to the
collector is same as the product water delivered to the hot
outlets. Open system is typically more efficient and less costly
as there is no heat exchanger needed. However, open
systems should be avoided in areas where freezing is
possible or common.
Closed solar water heating system:
A closed system means the liquid that circulates to the
collector is isolated from the product water. In this, solar
energy gained is transferred to the product water through a
heat exchanger. Typically propylene glycol liquid is used
as the circulating media. Most of the times, closed systems
operate with circulating pumps.
Active solar water heating system:
An active system means circulating pumps are installed for circulation of product water both
on inlet and outlet side. In forced circulation, source of cold water supply can be at any level
as water shall be pumped into the system. It is recommended to use forced circulation
system where source of cold water is not placed at sufficient height. In case of large systems
also, it is recommended to have forced circulation system to attain sufficient water pressure.
Active systems can be open or closed, but almost always closed system.
Schematic of a Thermo-syphon (passive)
system
Schematic of an active system
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Passive solar water heating system:
Passive or thermo siphon system is the most widely used system. In thermo siphon system,
there are no circulating pumps and cold water will flow into the system due to pressure
difference. To create the pressure gradient, the source of the cold water must be placed at
least 7 feet or more, higher above the terrace level where solar water heater system will be
installed. Passive systems can be open or closed, but almost always an open system.
Important things to remember for installation
• While setting up collector banks, the installation should be done in such a way that
the shadow on one collector bank does not fall on the other, to get maximum output.
• Assembly of collectors should be installed in such a way that it is easy to do regular
and periodic maintenance.
• Support structure should be stable, resistant to corrosion and angle of tilt must be
proper, must be anchored to the roof or ground firmly by cement concrete blocks or
anchor bolts. The anchoring must be sufficient to ensure that strong winds are not
able to topple the structure and solar collectors.
• Plumbing:
o If GI pipes are used for cold water pipe line exposing to sunlight all the time,
there are chances that the galvanizing effect goes off and starts corroding. To
avoid this, GI pipes should be painted externally.
o Cold water air vent pipe should ideally start at the delivery point from the cold
water source and end at least 2 feet higher than the cold water source
overflow outlet. Please refer to the below figure.
1 2 3
4
1. Delivery point of cold water source 2. Overflow of cold water source 3. Min 2 feet distance between 1 & 2 4. Min 2 feet distance between 3 &
end of vent pipe
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o If a separate cold water tank is provided for the solar water heater, the
capacity of the cold water tank should be at least double the size of the solar
water heating system.
o Zigzag piping is likely to create air bubbles inside pipes, blocking the flow of
water, resulting in system overheating and steam generation.
o The hot water pipe should be comparatively of smaller diameter and of shorter
lengths in order to reduce heat losses.
o Hot water air vent pipe should be at least 2 feet higher than the cold water air
vent. Please refer to the above figure.
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ANNEXURE III
Principles of Life cycle cost evaluation
There are many factors to be considered while evaluating life cycle cost of solar water
heating system. These factors are discount rate, inflation rate, fuel costs, operation and
maintenance cost and solar water heater service life. All these factors vary from country to
country based on fluctuations in the economy, government policies, and fuel costs within the
country.
Discount rate and Inflation rate: Discount rate is the rate used to calculate present value of
future cash flows. Inflation rate is a measure of real value of money.
Fuel cost: Switching over to solar water heating system is mainly to save on the alternate
fuel costs i.e. electricity, fuel oil, kerosene, Liquefied Petroleum Gas (LPG). The unit costs of
these fuels vary from time to time and place to place.
Operation and maintenance cost (O&M): O&M cost of solar water heating systems should
be calculated based on the system cost (collector, storage tank with necessary plumbing
interconnection and installation), taxes, regular and periodic maintenance cost and
depreciation costs. Sometimes, the manufacturer of the SWH system may be able to provide
expected O&M cost per litre of hot water generated per year.
Solar water heater service life: The service life of a solar water heating system varies
widely depending on technology, manufacturing quality, water quality and maintenance of the
system. It is recommended to take service life of flat plate collector to be 15 years and that of
evacuated tube collector is 5 years.
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ANNEXURE IV
Of the five countries, Bangladesh and Philippines did not have any awareness programs and
Sri Lanka, Thailand and Vietnam had some awareness programs through road
shows/newspaper advertisements. Web links for some of the marketing material,
advertisements in newspapers and photographs of demonstration of SWH technology in
exhibitions and videos that are used in other countries for promotion of SWH are provided
below. The idea is to showcase the selected five countries what kind of awareness programs
can be helpful.
Bangladesh
• Campaign by Rahimafrooz Solar through outlets and distribution of pamphlets in
exhibitions (A sample of pamphlet is below)
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Sri Lanka
• Copy of news advertisement by Alpha Therm Systems Pvt Ltd in newspapers
• Photograph captured during demonstration of SWH technology in an exhibition in
Colombo
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Thailand
• Brochure used for promotion of DEDE scheme for solar water heaters
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USA
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• http://www.swhspecialist.com/downloads/solar_brochure.pdf
• http://www.youtube.com/user/Sunwardisking?feature=pyv&ad=5344962723&kw=solar
%20water%20heater#p/u/0/1eOePfDjffY
• http://www.youtube.com/watch?v=dr5kqK_65fA&feature=related
• http://www.youtube.com/watch?v=2e72qL_uupY
• http://www.youtube.com/watch?v=sIGp7ve4OTE
• http://www.youtube.com/watch?v=HFCrb0c_QWY
• http://www.youtube.com/watch?v=R9bkzTVD-4I
• http://www.solarroofs.com/documents/system3.pdf
• http://www.solarroofs.com/documents/skyline5brochure.pdf
India
• http://www.youtube.com/watch?v=d9M-J3GmKt0
• http://www.youtube.com/watch?v=Nc17Ehx_5xY
• http://www.mnre.gov.in/pdf/Solar%20(Lantern%20&%20heater)%20Eng.pdf
China
• http://www.youtube.com/watch?v=g5KfVPBe2D0&feature=related
South Africa
• http://www.eskomidm.co.za/wpcontent/themes/eskom/pdfs/Residential/Solar/123186E
SKD_SWH_New.pdf
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ANNEXURE V
Web links of the organizations involved in various projects of SWH in the five countries are
provided below.
Organization Abbreviation Web link
AIT Asian Institute of
Technology
http://www.ait.asia/
BPS Bureau of Product
Standards
http://www.dti.gov.ph/dti/index.php?p=249
CMES Centre for Mass Education
in Science
http://cmesbd.org/
CMU Chiang Mai University http://www.cmu.ac.th/index_eng.php
DEDE Department of Alternative
Energy Development and
Efficiency
http://www.dede.go.th/dede/
ECC of
HCMC
Energy Conservation
Centre of Ho Chi Minh
City
EVN Electricity of Vietnam http://www.evn.com.vn/
IFRD Institute of Fuel Research
& Development
http://www.kier.re.kr/open_content/eng/main_page
.jsp
KMUTT King Mongkut’s University
of Technology Thonburi
http://www2.kmutt.ac.th/en_index.aspx
LGED Local Government
Engineering Department
http://www.lged.gov.bd/
MoIT Ministry of Industry &
Trade
http://www.moit.gov.vn/c/portal/layout?p_l_id=PU
B.1.118
NERD National Engineering http://www.nerdc.lk/
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Organization Abbreviation Web link
Research and
Development
RERC
(Bangladesh)
Renewable Energy
Research Centre
http://www.univdhaka.edu/research3/research_ce
ntre_details.php?id=6
RERC
(Vietnam)
Renewable Energy
Research Centre
SEDA Sustainable Energy
Development Agency
SLSEA Sri Lanka Sustainable
Energy Authority
http://www.energy.gov.lk/index.php
SRET School of Renewable
Energy Technology
http://www.sert.nu.ac.th/
TISI Thai Industrial Standard
Institute
http://www.tisi.go.th
TSTA Thai Solar Thermal
Association
http://www.stasolar.org/
UPSL University of the
Philippines Solar
Laboratory
http://www.upd.edu.ph/~solar