2j7YOwO

SOLAR THERMAL HEATING/COOLING INDUSTRY
countries. 47 Deployment in the industry sector is a fraction of
that in the residential sector, even though the long-term potential
for both segments is almost the same. 48 Top countries for solar
process heat capacity in operation included Austria, Chile, China,
the United States and India. 49
Four major barriers have slowed the uptake of solar process
heat installations, including: high system and planning costs;
the absence of guidelines and tools for planners and engineers;
a dearth of business models; and a lack of knowledge among
potential customers. 50 To address some of these barriers,
Australia established a grant to cover 50% of the project costs
for solar process heat facilities. The grant programme, combined
with educational workshops organised specifically for the dairy
industry, resulted in some projects being in the first planning stage
as of early 2016. 51 Other countries with support mechanisms for
solar process heat include Austria, Germany and India. 52
An additional barrier in 2015 was low oil and gas prices, which
made solar process heat less competitive in many countries by
extending system payback periods. In response to low oil prices,
Thailand halted its process heat subsidy scheme for 2015–2016. 53
Low fuel prices also affected the solar cooling market and,
combined with the still high costs and complexity of cooling
systems, reduced demand in 2015. 54 Demand for solar thermaldriven
air conditioning systems also was tempered by rapidly
falling costs of solar PV systems in conjunction with split air
conditioning systems (especially in buildings with relatively small
cooling loads). 55 An estimated 125 new solar cooling systems
were added in 2014 (the last year for which global statistics are
available), for a total of at least 1,175 by year’s end. 56 The peak year
for new installations was 2012, when around 200 systems were
added. 57
Even so, several larger solar cooling systems were installed in
2015, or were under construction as of early 2016. These include
systems for the European companies Wipotec (Germany) and
AVL (Austria), and for the Sheikh Zayed Desert Learning Center
in Abu Dhabi. 58 There also was growing demand for solar cooling
R&D and demonstration plants in China and the Middle East in
2015. 59 The main driver of demand for solar cooling technology
is its potential to reduce peak electricity demand, particularly in
countries with significant cooling needs. 60
Absorption and adsorption chillers have long dominated the solar
cooling market and account for approximately 71% of capacity in
operation. In 2015, they increased their market share, whereas
desiccant cooling systems saw their market share decline. 61
Success and crisis were close together in the global solar heating
and cooling industry in 2015. Within individual countries, some
players failed while others succeeded by changing their business
models; and, from country to country, market development and,
therefore, industry health varied considerably. For example,
collector manufacturers in sunbelt countries with strong demand –
such as India, Mexico and Turkey – invested in new production
capacity. 62 By contrast, in much of Europe, China and some other
countries, manufacturers faced declining sales and overcapacity.
In India, component suppliers built new manufacturing facilities
in response to the country’s growing demand for concentrating
collector systems for industry and large-scale cooking
applications, which has been driven by investment subsidies. 63
Mexico has evolved into a technology hub in Central America and,
in 2015, had two factories under construction, one for polymer
collectors and one for vacuum tubes. 64 Turkey’s three vacuum
tube manufacturers extended their production capacities in 2015
based on rising national demand and plans for increased export. 65
The collector industries in Greece and Austria continued to have
high export numbers throughout 2015. Greek manufacturers saw
their exports increase by 7%, following a 16% rise in 2014, while
the Austrian collector industry’s export share remained high, at
around 80% in 2015. 66
Elsewhere, developments in 2015 were not as bright. Dark clouds
were over Chile, for example, where the domestic industry went
through a severe crisis. Chile’s new tax credit scheme for the
housing industry, originally expected to be approved in early 2015,
did not come into effect until February 2016; as a result, several
manufacturers and system suppliers were forced to temporarily
suspend their solar thermal activities. 67
The Chinese industry was troubled by a second year of significant
market contraction, driving industry consolidation at all levels of
the supply chain. In 2014, Linuo New Material (once the world’s
largest manufacturer of glass tubes and vacuum tubes) made the
decision to stop production; this was followed, in 2015, by the
Sunrain Group’s acquisition of a 30% stake in the large flat plate
collector manufacturer Pengpusang. 68
Manufacturers in several Central European countries also faced
overcapacities and an associated drop in collector prices. This
development resulted in serious financial troubles for four
high-profile companies: Watt (Poland), Astersa (Spain), Solvis
(Germany) and Clipsol (France). 69
However, even in this period of declining markets all over Europe,
several European solar thermal manufacturers managed to
increase their sales in 2015 by developing new business models.
In Poland, some system suppliers – such as Hewalex and Ensol –
profited from a growing number of public tenders for social
housing projects and public hospitals. 70 Spanish solar thermal
manufacturers offered innovative financing schemes in order to
decrease the industry’s dependence on subsidies. 71
In addition to the well-established energy service companies
(ESCOs) for solar thermal – including, S.O.L.I.D. (Austria) and
Nextility (formerly Skyline Innovations; United States) – an increasing
number of turnkey suppliers specialised in energy service contracts
during 2015 to eliminate the barrier of high upfront costs for potential
commercial clients. 72 Such suppliers include Sumersol (Spain), Sunti
(France), Enertracting (Germany) and Sunvapor (United States). 73
02
RENEWABLES 2016 · GLOBAL STATUS REPORT
73