Saturday, February 25, 2012

Solar Power for Your Shower by Claire Kreycik

Solar water heating (SWH) is an efficient technology that can offset utility bills significantly. For customers with significant hot water demand and/or high energy costs, domestic solar hot water may be a choice for saving energy and money, and reducing emissions. This article explores the current market size of the SWH industry, explains state and utility support for SWH, and introduces unique utility business models for third-party ownership of SWH.


SWH systems have a lower upfront cost on average as compared to typical-sized customer-sited solar PV installations. While installed costs will vary widely depending on hot water demand and the type of solar collector technology used, a residential SWH system might cost between $3,000 and $6,000 to install. On the other hand, a typical residential 4-kW PV system would cost $20,000 (or $5/watt). Furthermore, the U.S. Department of Energy estimates that a residential SWH system can save customers between 50% and 80% on water heating bills. These factors translate to quick payback periods for SWH. Yet despite these benefits, installations in the United States have been somewhat limited to date.

Market Information


The SWH industry is dwarfed by the solar photovoltaic (PV) industry in the United States. According to the U.S. Energy Information Administration (EIA), revenue from installed PV module systems was nearly $1.15 B in 2009, while revenue from installed solar thermal system shipments was $159 M. Due to reporting gaps, the absolute number of SWH systems installed in recent years is unknown; however, reporting companies accounted for shipments of around 75,000 systems in 2009 and industry estimates are twice this number. One potential reason for the relative size of the markets is that SWH is often installed only when the hot water heater asset needs to be replaced.


The residential sector makes up a large portion of the domestic market for solar thermal collectors. In 2009, of the 12.2 million square feet of domestic shipments of solar thermal collectors, 84% were used in residential applications. Additionally, a large percentage of end users (73%) are using the technology for swimming pool heating. The largest state markets for SWH in 2009 were Florida, California, Arizona, Hawaii, and Oregon.

No comments:

Post a Comment