SOLARGE -National market analysis for CSTS in 2005 Resear by qws18475


									SOLARGE - National market analysis for CSTS in 2005

Research design, research results and conclusions for SOLARGE 2006

Presentation by
Christoph Urbschat, eclareon GmbH
Anja Schlieder, eclareon GmbH
Susanne Berger, Berliner Energieagentur GmbH

The sole responsibility for the content of this presentation lies with the authors. It does not represent the opinion of
the European Communities. The European Commission is not responsible for any use that may be made of the
information contained therein.

1. Research Design

Aims and objectives

• WP 1 carries out a systematic overview of national structures, policies and market
  situations in the relevant building sectors and collective solar heating potentials of
  the partner countries.
• The analysis focuses on the main market obstacles and barriers for the
  implementation of CSTS.
• The market studies create the basis to define strategies and concrete actions to
  be worked out in the following work packages to achieve the intended market
  stimulation for CSTS technologies.
• They will also generate recommendations to policy makers on how to overcome
  market barriers.

     Market model for analysis

                                             National housing and
                                                 hotel sector

                                         •   National building stock
                                         •   Used heating systems
                                         •   Refurbishment and new
                                             construction activities
                                         •   Actors involvement in

                         obstacles                                      obstacles
                                                                                    National legislative and
    National energy policy
                                                                                     economic framework
                                              CSTS                                  •   Energy prices
•   National energy policy
                                         implementation                             •   Capital market terms for
•   National administration                                                             this kind of investments
•   National incentives for                                                         •   Legal conditions for
    CSTS                                                                                refurbishment activities
                                                                                    •   Building sector regulations

                              barriers                                  barriers
                                             National solar industry

                                         •    Market history – has
                                              market and industry for
                                              CSTS developed?
                                         •    Micro: commercial
                                              products available?
Work programme 2005

1. Definition of research objectives and design of a draft Version 1.0
2. Circling around to WP partners
3. Evaluation by Work Package Partners
4. Finalisation of research objectives and design
5. Providing the research guidelines to project partners (questionnaire)
6. Data collection phase 1: Collection of public available macro analysis data
7. Definition of data needed to finalise the data collection
8. Data collection phase 2: Collection of macro analysis data by National WP partners
9. Programming of database relating to the Research Objects and Design Document
10. Definition of data still needed to finalise the data collection
11. Data collection phase 3: Primary research of still missing data
12. Comparative country analysis
13. Summary + conclusions for 2006

Deliverables December 2005

Data Collection
 / Structuring
Macro profiles               Assessment
                                          Available PDFs
                                            for public

2. Country research results - status

 1. Spain (1)

                        National building stock of about 14.1 million dwellings in 2000, thereof 65 %
                        42 % of the dwellings built between 1980 and 2000
                        Share of privately owned dwellings: about 85 %
                        48 % of the building stock equipped with a heating system; heating in most
National multi family   areas only used from December to February
housing sector          Individual heating overweighs centralised heating
                        Main energy source for heating is gas (mainly in the north), amounting to 39
                        %, followed by electricity and liquid fuels; district heating is rare
                        Many new building activities, whereas yearly refurbishing rate is around 0,5
                        89 % condominium ownership
                        In 2004, total number of hotels and hostels about 13,832 with almost 1,2
                        million beds in total and an occupation rate of around 54 %
                        Generally, space heating and hot water provided by central systems
National hotel sector   Energy sources are mainly gas or oil
                        Refurbishing rate unknown, newly constructed hotels amount to 1.1 %, i. e.
                        >152 hotels per year
                        70 % of the hotel sector is privately owned (in 1999)

  1. Spain (2)

      Galicia                                                                           Galicia

 Bask region                                                                       Bask region
      Madrid                                                                            Madrid
                                                                     Induvidual                                                                          Liquid
                                                                     Central                                                                             Wood
    Catalonia                                                                         Catalonia
   Andalusia                                                                         Andalusia

 Spain (total)                                                                     Spain (total)

                 0%   20%     40%       60%       80%       100%                                   0%   20%    40%       60%      80%       100%

Penetration of individual (per dwelling) and centralized (per apartment           Penetration of energy sources for space heating in different regions
building) heating equipment in different regions                                  Source: INE, 2001
Source: INE, 2001

  1. Spain (3)

                       By 2004, around 420,370 m² installed glazed collectors in total However,
                       installed surface per 1,000 inhabitants still below European average
National CSTS market   Market share CSTS: about 80 %; market growth in the last 2 years: 5-11 %
development            Large systems are the main market segment: 69 % of the installations with
                       collector area of ≥30 m², representing 92 % of the total collector area in 2002
                       Systems with a collector surface of more than 100 m² are dominant
                       Energy prices are quite low
National legislative   Interest rate for real estate loans amounts to 3-4 %, equity minimum: 20 %
and economic           Expected pay back time for refurbishments in the range of 5 to 10 years
framework              Solar Ordinance of 50 municipalities: SWH is obligatory in new buildings and
                       renovation projects (solar fraction: 60 %)
                       New building code (CTE) to come into force by 2005/2006, applicable for all
                       new buildings and major renovation projects (minimum solar fraction: 30 %)
                       Update of Renewable Energy Plan 2005-2010 (PER 2005): Goal by 2010: 4.9
National energy        million m² solar thermal installations (10 % more than the original plan)
policy                 Special loans and a budget of 348 M€ for subsidies up to 2010; maximum
                       finance: 80 % of the eligible costs (30 % subsidies + 50 % loans)
                       Tax deduction of 10 % of investment costs (enterprises) and intended
                       implementation of a fiscal incentive on income tax for private persons

2. Denmark (1)

                        Total of 2.6 million dwellings, most of them (38 %) multi family houses,
                        followed by one-family houses and terraced houses
                        Most of the dwellings built between 1975 and 1979 and before 1900
                        Major part of the multi family houses (36 %) owned by non profit (social)
National multi family   housing associations, followed by condominium ownership (20 %),
housing sector          municipalities and others (20 %)
                        Very high share of district heating; central oil and gas are rare
                        DHW and space heating in nearly all cases with same energy source
                        Estimated refurbishing rate: 0,2 %; new constructions exceeded 4 % in 2004
                        Number of rooms in 2005 registered to be 41,838 located in 527 hotels
                        Amount of hotels plunged by 43 % from 1993-2003, whereas increasing
                        number of rooms
                        Rate of occupancy: about 35 % in 2003
National hotel sector   Mostly used heating systems: radiators; in some new hotels floor heating
                        DHW segment dominated by central systems
                        Majority of the hotels connected to district heating
                        Nearly 72 % of the hotel sector owned by commercials (chains of hotels)

2. Denmark (2)

                                                                                            Source of heating

                                      Private person

                                      Cooperative housing ass.

                                      Joint-stock companies etc.                                                District heating
                                                                                                                Central, oil
                                      Private multi-ow ner scheme                                               Central, gas
                                                                                                                Central, other fuel
                                                                                                                Other owens
                                      Private multi-ow ner scheme
                                      (Flats)                                                                   n.a.

Ownership of all dwellings                                          Sources of heating in multi family houses
Source: www.danmarksstatistik, 2004                                 Source:, 2004

  2. Denmark (3)

                           Large systems still installed by the manufacturers
                           Development of district heating systems is a special Danish feature
National CSTS market       283,500 m² glazed collectors supposed to be installed in total by end of 2004,
development                thereof 45-50,000 m² of CSTS
                           Market growth expected to amount to 50 % in 2005
                           Compared to the periods before 2002, the market is still at a low level
                           Wide range of prices for district heating
                           Combined heat and power common in large scale, thus lower prices in
                           big cities
National legislative and
economic framework         Access to loans (housing and hotel sector) and low interest loans
                           guaranteed by the government (cooperative housing sector and
                           New building code to come into force January 2006
                           Particular goal: reduction of CO2-emissions, according to the Kyoto-treaty, at
                           the lowest price possible
                           Solar energy considered to be one of the most expensive ways to reduce CO2-
National energy policy     emissions (thus, low priority of the government)
                           National support schemes undertaken by the Energy Agency under the
                           Ministry of Traffic and Energy
                           No subsidy schemes or other incentives for solar energy

  3. Italy (1)

                 21.5 million dwellings (i. e. 30 % of the total amount of dwellings)
                 One family houses (6.9 million) outweigh multi family houses
                 3.95 million dwellings built between 1961-1981
                 About 75 % of the population own their apartment, i. e. 15 million flats
                 Mostly multi ownerships, administrated by external companies/single persons
National multi   >90 % of the dwellings are privately owned houses and flats, including condominium
family housing   ownership
sector           DHW: autonomous heating systems very common (e. g. boilers); rarely
                 centralized DHW systems and district heating
                 Space heating: centralized systems widely spread
                 Trend towards autonomous heating plants, especially in social housing sector
                 High refurbishment rate: after 1991, more than 430,000 buildings refurbished
                 Certain share of MFH with beneficial heating system
                 Almost 33,500 hotels, mostly located in the north and centre of the country
                 1.9 million beds; occupancy rate amounts to 44 %
                 Centralized heating is most common for DHW and space heating
National hotel
                 The energy resource used in almost every hotel is gas
                 In the south also autonomous heating systems; on the islands electric DHW
                 72 % of the hotels (in Venice and Mestre) refurbished between 1995 and 2001
                 45 % part of consortiums, 25 % in ownership and in franchising respectively

3. Italy (2)

                  electricity 260.000                                                                       6,5
   100%                                                                            100
    90%          solid fuel 1.400.000                                              90
                                                       non electric                                         18,5
    80%                                                                            80
    70%              gas, lpg and                                                  70
    60%                gasoline
                                                                                   60                                                        lpg
    50%               12.100.000

                                                                                   50                        75                              gasoline
    40%                                                  electric
                                                                                   40                                                        natural gas
    30%                                                  DHW
    20%                                                4.650.000                   30

    10%                                                                            20
     0%                                                                            10
             heating and DHW in one plant      heating and DHW separated            0

                                                                             Share of different types of fuels in space heating plants of Italian
Share of different types of fuels in DHW-preparation of Italian apartments   apartments
Source: ISTAT, 2001                                                          Source: ENEA, 2004

  3. Italy (3)

                       4,000 to 8,000 m² CSTS installed so far, which corresponds to an estimated
National CSTS          market share of only 1-2 %
market development     Market growth of about 25 % during the past 2 - 3 years
                       In the centre and the south thermosiphon systems mostly used

                       Interest rates for real estate investment amount to 3.5-4 %
                       Bank finance: 75-80 % of acquirement investment and 100 % for refurbishment
                       Refurbishment payback times: 8 years for plants, 20-25 years for buildings
National legislative
and economic           Law (Legge 10/91) on maximum primary energy demand of buildings and
framework              obligation for administrations to install solar systems; however: obsolete
                       Regional laws, to be included in the local building codes, exist in some cases
                       Building directive 2002/91/ICE will come into force by the end of 2006, defining
                       maximum values for heat consumption
                       In 2001, allocation of 6 million € for support of CSTS by environment ministry
                       VAT reduction of 10 % for solar thermal systems
                       Subsidy program of 15.5 million €, managed by the regions, started in 2002
National energy
policy                 Accorded subsidies: 30 % of the investment; each region decides on how to
                       finance solar thermal plants
                       Promotion program (9 million €) for central and southern regions with
                       subsidies of up to 50 % of the investment costs

 4. Slovenia (1)

                   National building stock of >777,000 dwellings, of which 242,000 (31 %) are
                   multifamily houses and 65 % are equipped with central heating systems
                   59 % of the houses built before 1975 and 31 % between 1975 and 1990
                   More than 92 % of the dwellings are privately owned, due to sales of state
National multi     owned building stock under very favourable conditions in the 1990s
family housing     27,000 non-occupied dwellings
sector             High energy consumption for water heating, arousing potential for solar thermal
                   Oil is dominant for space heating (almost 45 %), followed by biomass (29 %)
                   and district heating (12 %)
                   For water heating, electricity is also common (29 %)
                   Rate of new constructions in 2002 less than 0,1 %
                   190 hotels, mainly built after 1965, situated in 30 important tourist centres
                   Capacity of 27,500 to 30,000 beds in total; 400 to 500 beds on average
                   Yearly occupancy rate of about 47.9 %
                   65 % of the hotels are privately owned, with only a few hotel chains
National hotel
sector             Also interesting for solar thermal: 13 existing larger campsites
                   Renovation realised by important hotel chains in recent years; 2,000 boilers are to
                   be replaced by 2010
                   On average, around 90 buildings newly constructed per year
                   Refurbishment activities due to developing tourist sector

 4. Slovenia (2)

                                                             Share of space heating systems according to the                Share of water heating systems according to the
                                                                      type of heating systems (2002)                                 type of heating systems (2002)
                                                                                                                                                                    heating, 14%
                                                                                                        heating; 14%

                                                                                                      Local boiler;

                                                                                                                                                                      Local boiler
                                                                                                       heating           Central
                                                                                                     system, 66%         heating
                                                                                                                       system, 66%

Share of energy sources in final energy consumption for   Type of heating systems for heating and hot water heating in households
heating and hot water heating in households               Source: Statistical Yearbook Republic of Slovenia; 2002
Source: Statistical Yearbook Republic of Slovenia; 2002

  4. Slovenia (3)

                       Large number of solar systems installed between 1980 and 1990
                       Around 9,000 m² of glazed solar collectors installed from 2000-2004
National CSTS
market development     Approx. 1,800 m² newly installed glazed collectors in 2004, thereof 250 m² CSTS
                       Only very few CSTS installed per year, due to bad experiences concerning
                       durability in the past
                       Payback times vary, depending on the dimension and technology of
                       refurbishment measures (from 3-4 up to 25 years)
                       Mechanisms to shift investment costs from the investor/owner to the
National legislative   users/tenants are fixed in individual agreements
and economic
framework              Regulation on thermal protection and efficient energy use in buildings:
                       solar systems can be included in the calculation of the final energy consumption
                       in buildings with up to 4 apartments (individual buildings only)
                       No obligations for CSTS and no solar ordinance regulations so far
                       Objective: share of heat production out of RES of 25 % by 2010 (today: 22 %)
                       National environment protection program envisions 10,000 m² of solar
National energy        collectors newly installed by 2010
policy                 No direct support scheme or promotion program for CSTS
                       In the past, support for self-construction for small systems
                       Subsidies in 2004 for MFH and hotels: up to 40 % of eligible costs

 5. Germany (1)

                 National building stock of about 38 million apartments, thereof 54 % (three
                 million) multifamily buildings and 18 % two-family houses, i. e. 17 million dwellings
                 Most multifamily houses with central heating systems for several buildings
                 Differences in the building stock between old and new federal states
                 Most common energy source for heating: natural gas
National multi
family housing   In the new federal states, district heating and coal fired systems also common,
sector           whereas in the old federal states oil is used to a great extend
                 In 2003, 92 billion € invested in refurbishment, while 52 billion € invested in new
                 constructions; certain share of MFH with beneficial heating system
                 60 % of the building stock is privately owned in the old federal states, whereas
                 the majority in the new federal states is conducted by cooperatives, communities
                 or municipal housing companies (almost 70 %)
                 Capacity of more than 2.5 million beds in 53,771 accommodation facilities in 2003
                 Most overnight stays in summer, which is advantageous for the adoption of solar
                 thermal energy
National hotel
                 In 2004, 549 newly constructed and 1,156 refurbished hotels
                 Concerning the ownership structure, there is a trend towards expansion of hotel
                 chains (38 % in 2000)
                 Short payback times and image reasons for CSTS

 5. Germany (2)

                                 Germany          States    Eastern States

 Natural gas                       43,3%          44,7%        37,1%

 Oil                               34,0%          38,5%        14,4%

 District heating                  13,1%           8,8%        31,8%

 Electricity                       4,6%            5,2%         2,0%

 Coal, Lignite                     3,1%            1,4%        14,1%

 Renewable energy                  1,1%            1,2%         0,6%

Heating systems of German residential buildings
Source: destatis 2005

  5. Germany (3)

National CSTS     750,000 m² of glazed collector surface installed in 2004, thereof about 5 % CSTS
market            In total, an estimated collector area of 60,000 to 75,000 m² is installed in the
development       multifamily building sector

                  Interest rates for real estate investment around 3.5 %; reduced interest rates
                  granted by the Reconstruction Loan Cooperation (KfW)
                  Shorter pay back times for refurbishment in the hotel sector (< 5 years) than in
National          the housing sector
legislative and   Tendency towards lower equity and/or liquidity in the housing sector
economic          Heating costs are paid by the tenants; investments in energy refurbishment can be
framework         refinanced by a rent increase
                  Energy Saving Ordinance (EnEV, 2002) limits the energy supply of buildings
                  Regulations of the Energy Performance Building Directive (EPBD) will be integrated
                  into EnEV by the end of 2005
                  Goal: doubling the cumulative installed collector area to 10 million m² by 2010
                  Promotion initiative “Solar Thermal Energy for Multifamily Buildings” since 2002
                  Subsidy programs Solarthermie 2000+ and market incentive program
National energy
                  Numerous initiatives and subsidy programs on national, regional and local level
                  Soft loans by the Reconstruction Loan Cooperation (KfW) of up to the total of
                  investment costs for building reconstruction

 6. Netherlands (1)

                 National building stock of 6.8 million houses, thereof two million (30 %) multifamily
                 dwellings in about 70,000 buildings
                 3.4 million houses built after 1970
                 63 % of the multifamily dwellings owned by housing associations, 27 % privately
                 owned and 10 % privately rented
National multi   Non profit housing associations own 35 % of all dwellings
family housing   10 % of the social and privately rented houses with collective heating installations;
sector           hot water is also provided individually in most cases (84 %)
                 For space heating, gas is used in 97 % of the houses
                 For water heating, natural gas is mostly used (79 %); also electricity (11 %) and
                 collective systems (10 %)
                 Yearly refurbishing rate amounts to 6.7 %, whereas new construction rate is only
                 about 0.8 %
                 In 2003, about 90,850 accommodations in 2,900 hotels existing
                 Occupancy rate amounts to 63.2 %
                 Central gas-fired boilers are common for heating and hot water supply
National hotel   Refurbishing rate of hot water systems in 2004 amounts to 6.7 %
sector           Privately owned: 80 % of the hotels small enterprises, 20 % large hotel chains
                 Payback times for investments in energy savings are short (3-5 years) which is
                 CSTS opportunities more on image than on economic aspects

 6. Netherlands (2)

       District Heat
           10%                                                                                            Hot water demand per
                                                                                                          occupied bed
    Electricity                                                                                           (litres/day at 60º C)
                                                                         Room with washbasin              6±1

                                                                         Room with washbasin and          21 ± 3
                                                                         Room with washbasin,             54 ± 8
                                                                         shower and bath
                                   Natural Gas
                                      79%                                Laundry                          18 ± 9

Energy sources for water heating                                        Hot water demand for hotel facilities
Source: De Kwaliteit van de Nederlandse woning en woonomgeving rond     Ssource: ISSO Publicatie 59 Grote zonneboilers – ontwerp, uitvoering
de millenniumwisseling – Basisrapportage Kwalitatieve Woonregistratie   en beheer, 2000
2000 (VROM)

  6. Netherlands (3)

                       Stabilised market volume (stagnating) due to the abolition of the national
                       subsidy scheme in 2003; only tax reduction for companies + local subsidy
                       schemes remaining
National CSTS market   Objective of 400,000 solar water heaters by 2010 unlikely to be reached
                       36,000 m² CSTS installed by 2002; >5,000 m² CSTS newly installed in 2004
                       CSTS market growth is 13 % in 2004
                       Due to the small size of the market no continuing market development

                       Low interest rates granted for non-profit housing associations, investing in
                       real estate, with payback times of 10-15 years
National legislative   For commercial investors, payback times amount to 3-5 years
and economic
framework              Heating costs sometimes included in service costs, but generally paid by tenants
                       No mechanism to shift the investment costs to the tenants without their
                       written permission; however, exception for new rent contracts

                       National goal of 400,000 solar water heaters by 2010 doubtful due to
                       abandoned national subsidy program (see above)
                       Still existing: Fiscal stimuli, e. g. Energy Investment Allowance (EIA) and Green
National energy        Investment tax deduction
                       Since 2005, subsidy program for dissemination activities and feasibility
                       Several responsibilities shifted from national to local governments

 7. Cyprus (1)

                 National building stock of about 300,000 dwellings (2003) mainly consists of single
                 houses and apartment blocks
                 MFH with 6 to 8 apartments are currently very much increasing
National multi   Space heating usually done with large diesel fired boiler units; hot water supply is
family housing   managed by thermosiphon solar water heaters; each dwelling has its own
sector           system
                 Yearly refurbishing rate between 7 and 9 %
                 80 % condominium ownership of the total housing stock; the rest of 20 %
                 consists of Government low-cost housing schemes and self-help housing schemes
                 Around 100,000 beds capacity located in around 1,000 hotels, hotel apartments,
                 apartment blocks and tourist villages; falling rate of occupancy from 75 % in 2001 to
                 55 % in 2004
                 50 % of hotels are utilising large solar water heating systems with diesel fire
                 boilers for support during winter
National hotel   Forced circulation systems are used with large array of flat plate collectors (300m²)
sector           and central hot water storage tank
                 Central heating systems like HVAC most commonly used for space heating
                 Refurbishing rate about 1,000 to 1,500 hotels per year
                 Until 1990, 100 % were family businesses, nowadays chain of hotels run by large
                 companies are taking over the business more and more (40 % of capacity until

  7. Cyprus (2)

                Energy Balance for Households                                             Energy Balance for Hotels

                                                                                               Solar, 5%
                                         Electricity, 13%
                                                                                          LPG, 12%
                 Solar, 29%
                                                                                                 ,                 Electricity, 38%

                 LPG, 12%                       Diesel, 42%
                  Kerosine, 4%                                                           Diesel, 45%

              Electricity   Diesel   Kerosine     LPG    Solar                           Electricity   Diesel     LPG   Solar

Energy sources used in households in 2003                              Energy sources used in hotels in 2003
Source: Cyprus Solar Thermal Market 2003, Cyprus Institute of Energy   Source: Cyprus Institute of Energy, 2003

  7. Cyprus (3)

                          With 450,000 m² glazed collectors word leader in respect to installed solar
                         collectors per capita
National CSTS market
                          45,000 m² CSTS already installed (by 2005); yearly market growth from 10-
                         15 %
                          National production capacities of about 30,000 m²/year

                         High energy prices
National legislative     Interest rates from 4.25 % for short term up to 4.75 % for long term loans;
and economic             expected pay back time for refurbishments is 10 years
framework                Heating costs are paid by tenants; no mechanisms used to shift the investment
                         costs from the investor/owner to the users/tenants

                         Action plan towards sustainable energy for Cyprus is also focussing on
                         utilisation of solar thermal energy for further application like space heating
                         and space cooling
                         A grant scheme covers investments in Solar thermal based on mature
National energy policy
                         technologies up to 40 % of the investment maximum not exceeding 83,000
                         The Cyprus Institute of Energy runs the programme; beneficiaries are schools,
                         municipalities and communities

 7. France (1)

                 Total housing stock of 29.4 million units in 2002
                 10.6 million dwellings, i. e. 43.3 %, are multifamily houses
                 13.7 million houses (56 %) are privately owned, thereof 2.6 million MFH
                 17.3 % are tenants in the social sector and 20.7 % in the private sector
National multi
                 Most dwellings (35 %) built between 1949 and 1974 and before 1948 (31.2 %)
family housing
sector           Decentralized heating systems are common
                 Energy source in most cases: gas and electricity; trend towards individual gas
                 heating systems
                 In 2004, more than 133,000 MFH houses newly constructed
                 45 % social housing ownership
                 National building stock of 27,629 hotels in 2005
                 In most cases (50 %) privately/family owned (independent hotels),
National hotel   18 % commercial ownership (voluntary/integrated chains)
sector           Mostly decentralized heating systems
                 In economic class hotels mostly electric heating systems, in upper class hotels
                 different energy sources are used

8. France (2)

               Heating systems in MFH > 19 Apartments                                                  Heating types in MFH referring to year of construction

                                                   District heating              80%
                                                      20,0%                      70%
    Central heating
       34,9%                                                                     60%
        Coal                                               Gas central heating   30%
     / Wood heating                                          21,0%               20%
        0,1%                                                                     10%
    Electric CentraleheatingFuel central heating
         1,3%                22,7%                                                      Vor 1915         1915 -      1949 -        1968 -      1975 -         1982 -    ab 1990
                                                                                                          1948        1967          1974        1981           1989

                                                                                    District heating      Gas     Fuel        Electric and cabbage and wood      No Central heating

Fraction of heating systems in MFH
Source: -
                                                                                 Fraction of heating types in MFH, referring to year of construction
                                                                                 Source: -

  8. France (3)

                       In the past, some public owners very active in CSTS, especially in social housing
National CSTS          In 2004, about 7,768 m² of CSTS installed, i. e. market share of 7.8 %
development            For 2005, estimation of 15,000 m² of CSTS installed, i. e. 20 % of the market share
                       Objective by the end of 2006: 15,000 m² of CSTS installed yearly
                       Reallocation of the investment costs from the owner to the tenants is impossible
                       SRU Law with reference to decent housing (bonus on the utilisation of
                       renewable energies)
National legislative
and economic           Girardin Law for overseas departments, containing tax credits dispositions for
framework              investments in renewable energy
                       New thermal regulation 2005 to come into force by 2006, with stricter
                       requirements on energetic performance in new buildings (for hot water
                       Objective: one million m² installed per year by 2010, i. e. at least 200,000 m²
                       yearly for CSTS
                       Plan Soleil, continuing until the end of 2006, has been revised in 2004
National energy
policy                 Promotion measures by ADEME as well as financial supports, i. e. subsidies
                       renegotiated each year
                       Support only granted when successive steps are followed (feasibility studies,
                       certificated collectors, realisation)

 3. Summary and overview –
Comparison between countries

Summary – Assessment criteria

Assessment criteria = assess the effects of the present market conditions and
framework on the implementation of CSTS in each national housing and hotel

          +++   =   optimal conditions for CSTS implementation
          ++    =   advantageous conditions
          +     =   rather advantageous
          0     =   without influence
          -     =   rather disadvantageous
          --    =   disadvantageous
          ---   =   implementation almost impossible

Summary – Comparison between SOLARGE countries (1)

                                 CSTS in the MFH sector               CSTS in the hotel sector

  DENMARK                                   0                                     --

  NETHERLANDS                               +                                     0

  GERMANY                                   +                                     +

  FRANCE                                    ++                                   ++

  SPAIN                                     +                                    ++

  ITALY                                     +                                     +

  SLOVENIA                                  0                                     +

  CYPRUS                                    +                                    ++

  +++ = optimal conditions, ++ = advantageous, + = rather advantageous, 0 = without influence,
  - = rather disadvantageous, -- = very disadvantageous, --- = almost impossible

Summary – Comparison between SOLARGE countries (2)

                                                   National economic
                              National energy                                legislative
                                                    framework for
                              policy for CSTS                              framework for

  DENMARK                            ---                    0                     +

  NETHERLANDS                         0                     0                     +

  GERMANY                             +                     +                     +

  FRANCE                             ++                     +                     ++

  SPAIN                              ++                     -                     +

  ITALY                               +                    ++                     +

  SLOVENIA                            +                     0                      -

  CYPRUS                              +                    ++                     0

  +++ = optimal framework, ++ = advantageous, + = rather advantageous, 0 = without influence,
  - = rather disadvantageous, -- = very disadvantageous, --- = almost impossible

4. Conclusions for SOLARGE
     activities in 2006

  1. SOLARGE Spain

                         Interesting market segment for SOLARGE: new housing sector of multi family
Conclusion housing       houses
sector                   Most important market segment for SOLARGE is the condominium
                         ownership of apartments
                         Due to significant energy costs: hot water production as promising market
Conclusion hotel         segment for SOLARGE
                         Low production rate of new hotels calls for focusing on existing hotels
                         Market is slowly becoming mature and professional
                         Need/potential for large systems remains, due to high market share of
Conclusion CSTS          apartment buildings
market                   Necessity to find adequate solutions for decentralized systems
                         Technological development must be improved, including minimum
                         requirements, optimal (building) integration etc.
                         Low energy prices are not a main aspect for the market development
Conclusion legislative
                         New building code (CTE) will have a major effect on the market, especially in
and economic
                         the new building sector
                         Main challenge/success factor will be to facilitate the implementation of the CTE
                         The combination of CTE, PER 2005 as well as subsidies and credit lines will
Conclusion energy        create a sound basis for the market development
policy                   Key actors on the implementation of the CTE are public bodies on national,
                         regional and local level

  2. SOLARGE Denmark

                         More CSTS to be installed at the district heating plant
Conclusion housing       District heating, though, will not be possible for new buildings
sector                   For the few buildings with oil and gas solar will be an issue
                         Wide-spread use of central hot water is essential for CSTS at building level
                         Only a small share of the building stock interesting for CSTS due to common
                         district heating
Conclusion hotel         Long pay back period of investments causes reluctance; adequate incentives
sector                   needed
                         Solar is attractive due to central heating systems and hot water production
                         Important focus: Horesta, the Danish association for hotels and restaurants
                         Sector of large scale plants for district heating of interest for SOLARGE
Conclusion CSTS          Also in focus: new construction sector, based on buildings energy
market                   performance regulations
                         Knowledge/capacity of the manufacturers available for a larger market
Conclusion legislative
and economic             Relatively high energy prices due to heavy taxation motivate to invest in CSTS
                         No incentives at hand in order to promote CSTS, although high fuel prices
Conclusion energy        result in a growing market
policy                   Promotion by SOLARGE: demonstration of CSTS advantages in comparison to
                         other energy sources

  3. SOLARGE Italy

                         Large share of dwellings situated in MFH with high refurbishment rate
Conclusion housing       However, mostly autonomous heating systems and privately owned flats
sector                   Installation of CSTS hindered by technical and decisional problems
                         Target group: housing associations and building companies
                         Hotels in the south more and more interested in solar thermal plants
Conclusion hotel         High technical potential for solar thermal
sector                   However, moderate development due to subsidized energy prices by hotel
                         owners, assuming short payback times for investments
                         Supply side not very sufficiently established to satisfy a broader demand
Conclusion CSTS
                         Bottleneck: missing knowledge of installers
                         Crucial aspect for SOLARGE: cooperation with all actors of supply side
                         High energy prices as important precondition for cost-effective CSTS
Conclusion legislative   Despite new economic and legislative schemes underway, investors not
and economic             convinced yet
framework                Necessity to establish complete service packages and collateral measures,
                         while collaborating with investors (e. g. building enterprises)
                         Despite incentive systems, the goal of 3 million m² installed collector area will
Conclusion energy        not be reached by 2010
policy                   Long term R&D program for CSTS would be crucial to develop appropriate
                         technology and to build up confidence

  4. SOLARGE Germany

                          Intended CSTS integration is based on about three million multifamily houses,
                          thereof 80 % with a technical beneficial system, and a high potential for
                          energetic optimization
Conclusion housing
                          Ownership associations are a relevant target group for SOLARGE
                          Solar activities should be a part of marketing strategy, especially for demand
                          dominated market relations
                          Hotel chains are a relevant target group for SOLARGE, although the
                          financial scope for additional (e. g. solar) activities is relatively low
Conclusion hotel sector
                          Integration of solar solutions into the marketing strategy (e.g. Wellness-
                          Hotels, Eco-Tourism) could be realised
                          Market sector for CSTS still little developed, although actors show an
Conclusion CSTS market
                          increasing interest for its improvement
                          Due to high energy prices and price increases the framework is
Conclusion legislative    advantageous for CSTS
and economic
framework                 Integration of solar activities also to be simplified by the obligation of an
                          energy efficiency label for residential buildings
Conclusion energy         Different subsidies for CSTS investments are available
policy                    Subsidies might arouse positive effects for CSTS

  5. SOLARGE Netherlands

                    Most important stakeholders for SOLARGE are housing associations
                    Promotion to be embedded in refurbishment approaches (e. g. comfort, health)
housing sector
                    Attention for energy savings will grow, due to fast growing energy prices
                    Few hotel chains, owning 20 % of all hotels, allow focused dissemination efforts
Conclusion hotel    Payback times, though, usually amount to 3-5 years
sector              Interest in solar thermal may grow due to environmental image reasons
                    Potential also for campsites (34 % of the hotel sector)
                    Ups and downs in the market can be explained by few large installations and by
Conclusion CSTS     changing government policies
market              Currently, no specific active support programs for CSTS
                    Solar thermal tap water heating is a predominant technology
                    Favourable capital market terms for social housing
                    From 2006 on, strengthened building regulations to stimulate new construction,
legislative and
                    and EPBD to stimulate the market for solar refurbishment
framework           Important stimulus could be the full incorporation of energy quality in rent
                    Solar thermal not favoured very well, in contrast to wind and biomass energy
Conclusion energy
policy              Institutional focus to be targeted to the ministries of housing (VROM) and of
                    economic affairs (EZ)

 6. SOLARGE Slovenia

                     Less than half of the building stock are multifamily houses
                     Relatively old houses, in most cases privately owned (thus, lack of expertise)
                     Potential of solar thermal due to high energy consumption and individual
Conclusion housing   heating systems (66 %)
sector               Initiatives to combining biomass and solar water heating
                     Increasing renovation activities during the last decade
                     Target group for SOLARGE are designers and building managers
                     Solar energy not ambitiously included in the national energy supply plan
                     Predicted investment of almost 100 million € in refurbishment and 150 million
Conclusion hotel     € in new construction by 2010: advantageous indicator for CSTS
                     Target group for SOLARGE: mainly hotel chains
                     Relatively unorganised domestic industry as starting point for SOLARGE
Conclusion CSTS
                     Subsidy schemes with larger effects on individual investors
                     Environmental reputation and good practise examples as important aspects
Conclusion           Future situation for CSTS will improve, due to rising energy prices
legislative and
economic framework   SOLARGE is to enhance demand in multifamily buildings, hotels etc.

                     Favourable current national subsidy scheme
Conclusion energy
                     Goal should be a long term subsidy scheme, with annual decrease of support
                     Target groups for SOLARGE are the national institutions

 7. SOLARGE Cyprus

                           Ministry departments are target group for SOLARGE WP 3 activities
Conclusion housing         Focus should be on utilizing solar energy also for space heating and on
sector                     further system development (forced circulation, open or closed loop solar
                           The Ministry of Commerce, Industry and Tourism is under consultation with
Conclusion hotel sector    the other associations in order to introduce new measures / policies for
                           improving the quality of tourist services => potential for SOLARGE?
                           Local industry existing; potential for international co-operation
Conclusion CSTS market
                           introducing other applications
                           Due to high energy prices it is the right time to introduce more CSTS
Conclusion legislative
and economic framework     Currently no legal dependence between the rent and the energy efficiency
                           of a flat
                           Due to the implementation of the action plan many hotels will be
                           renovated in the next few years for the quality improvement of the hotel
                           sector services; this will give the opportunity to replace the old solar thermal
Conclusion energy policy   systems by new efficient systems
                           Current grant scheme gives the opportunity to introduce new CSTS
                           applications to schools and municipalities

 8. SOLARGE France

Conclusion housing
                           Potential for CSTS especially in social housing sector

                           (Integrated) hotel chains could be an interesting target group
Conclusion hotel sector
                           Development still strongly linked to public authorities’ actions
Conclusion CSTS market     Still relatively low degree of organization and lobbying regarding
                           manufacturers and other actors
Conclusion legislative     Evolutions of regulations are designed in connection with the new
and economic framework     law of 2005 and the objectives for the market share of solar thermal
                           Continuous actions, framework and support scheme with increasing
Conclusion energy policy   communication measures
                           Relevant target groups are local authorities (regional councils)


To top