Barriers to Growth and Strategies to Overcome Them
Which EU goals can be achieved by using solar thermal? - Replacement of conventional energies: 6% of EU final energy consumption (EU-15) could be replaced by solar thermal
- Security and diversity of energy supply, e.g. 30% of EU oil imports from Middle East (1999) can be replaced
- Reduction of greenhouse gas emissions
- Reduction of emissions causing urban pollution
- Reduction of other external costs caused by fossil fuels and nuclear power
- Creation of local jobs and SMEs development
- Export of know-how and equipment
Which are the main barriers for growth? - Higher upfront costs than conventional heating and cooling technologies
- Pay-back times often too long for commercial investment decisions
- Not yet perceived as a standard option for heating – therefore the decision-maker must be specially motivated
- Higher transaction costs (information, procurement, installation works) compared with the conventional heating (default option)
- Solar thermal not yet fully integrated into mainstream heating and construction sectors
- Low awareness of energy savings and environment
- Low awareness of solar thermal, especially among the relevant decision makers
- Lack of availability of motivated and specifically skilled installers
- Harmonised standards, certification and quality labels not yet widely recognised in the market and by public authorities – this barrier being solved through EN standards and Solar Keymark
- Applications with high potential not yet available in standard solutions (combisystems) or still in demonstration phase (solar cooling, process heat)
- Heating and cooling products do not have a high-tech image amongst most consumers and policy makers
What conditions are required for successful solar thermal markets? - Cohesive market structures
- Internalisation of external costs of conventional energies
- Regulations making the use of solar thermal mandatory
- Stable and well designed financial incentive schemes
- Public campaigns promoting solar thermal
- General awareness of energy savings and environment
- High awareness of solar thermal, especially among the relevant decision makers
- Highly visible demonstration projects - often with public authorities serving as model
- Availability of motivated and specifically skilled installers
- High trust through quality products and recognised quality label
- Availability of standard products and applications – showing the success of solar thermal
- Inclusion of solar thermal in R&D programmes
Which strategies can help to overcome the barriers to growth? - Set postive examples through the use of solar thermal in public buildings
- Raise awareness through the use of modern communication techniques
- Set national targets and initiate national/local support schemes
- Level the playing field through adequate financial incentives
- Help make solar thermal a mainstream technology through binding regulation
- Widen the cost-effective use of solar thermal through R&D programmes
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