Solar Water Heater Market Assessment Consolidated Report · Bangladesh, Sri Lanka, Thailand, ......

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




3.2.4 Comparing with Competing Energy Sources ............................................................................... 41

3.3 Thailand ............................................................................................................ 42




3.3.4 Comparison with Competing Energy Sources .............................................................................. 48

3.4 The Philippines .................................................................................................. 49



August 2011 i i




3.5 Vietnam ............................................................................................................. 51




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



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


Small Scale Funding Agreement (SSFA) August 2011

4

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



5

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



6

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



7

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



8

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



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



10

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.



11

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].



12

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.



13

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.


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).



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



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%



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



0

1

2

3

4

5

6

0

5

10

15

20

25

30

35

40

45

50


Irra

dia

nce

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

1

2

3

4

5

6

0

5

10

15

20

25

30

35

40

45

50


Irra

dia

nce

in

kW

h/m

2/d

ay

Tem

pe

ratu

re in

C

Solar Irradiance in Chittagong (Co-ordinates: 22.30 N, 91.810 E)Relative Humidity range: 55 - 86 %


0

1

2

3

4

5

6

0

5

10

15

20

25

30

35

40

45

50


Irra

dia

nce

in k

Wh

/m2/d

ay

Tem

pe

ratu

re in

C

Solar Irradiance in Khulna (Co-ordinates: 22.80 N, 89.550 E) Relative Humidity range: 51 - 87 %


0

1

2

3

4

5

6

0

5

10

15

20

25

30

35

40

45

50


Irra

dia

nce

in k

Wh

/m2/d

ay

Tem

pe

ratu

re in

C

Solar Irradiance in Rangpur (Co-ordinates:24.750 N, 89.240 E)Relative Humidity range: 48 - 86 %


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



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].



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



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



0

50

100

150

200

250

300

350

400

0

5

10

15

20

25

30

35


Ra

infa

ll i

n m

m

Te

mp

era

ture

in 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



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].



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



0

50

100

150

200

250

300

350

0

5

10

15

20

25

30

35

40


Ra

infa

ll i

n m

m

Te

mp

era

ture

in

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


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



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


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


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


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



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].



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



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.


0

50

100

150

200

250

300

350

400

450

500

0

5

10

15

20

25

30

35

40


Ra

infa

ll i

n m

m

Te

mp

era

ture

in 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



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

1

2

3

4

5

6

7

8

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecS

ola

r R

ad

iati

on

(k

Wh

/m

2/

da

y)

So

lar

Ra

dia

tio

n (

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



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



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)



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.


0

50

100

150

200

250

300

350

400

0

5

10

15

20

25

30

35


Ra

infa

ll i

n m

m

Te

mp

era

ture

in C




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



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



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



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



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



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.


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%.


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.



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


M, A Solar Therm

http://www.solartherm.lk/

3 Ceylinco Renewables Pvt

Limited


M, A - http://www.ceylincorenewables.com/

4 Energy Works Pvt Limited


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


M, A Edward Domin

ator

http://www.solardominator.com/

7 J.N. Packaging Pvt Limited


M, A Srilak Energy

-

8 MaxLanka Industries Pvt

Limited

M, A SunRise

-

9 PE Plus Pvt Limited


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


M, A Sun Bird

http://www.jfalanka.com/s_home.html

14 Wisdom Solar Pvt Limited


M, A SolarMate

http://www.wisdomsolar.lk/

Note: I: Importer, M: Manufacturer, A: Assembler/Fabricator


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



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




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.


illustrated below.

23 Exchange rate: 1 USD = 112 Sri Lankan rupee






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.



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.


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



direct-marketing strategy to sell their products. The government support in the solar

thermal industry is very minimal and considered to be in-significant.


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



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.


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.


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



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


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

Solar Water Heater Market Assessment INTERNATIONAL INSTITUTE FOR ENERGY CONSERVATION - Asia


47


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)



48

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.


illustrated below.

Table 10 – Typical costs of commercial solar hot water system (2007)



49


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


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.


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.




50

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/


Table 12 - Compilation of Solar Water Heater business in the Philippines



51


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.


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.


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.



52

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



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



53

Capacity

(Litres)

Type of

collector

Approx. Market

Price (USD)32

190 L Evacuated tube 535





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



54


illustrated below.


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.


34 Time value of money and future price hikes of input energy are ignored for simplifying the analysis.




55

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



56

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



57

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

•



58

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.


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.




the system; plumbing work; installation and commissioning. The procedures are explained in




59

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





•



60

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.


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.



61

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.




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


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







62

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


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.



63

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.






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







64

SWH manufacturers & taxes: IIEC through its regional branch office in Thailand has


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.



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.



65




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







66

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.



67

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)



• Size of SWH system: 100 Litres



Centre).

Figure 21 – Cumulative cash flows of sample 300 Litres SWH system in Bangladesh



68

-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


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)



• Size of SWH system: 10,000 Litres



Centre).

Figure 22 – Cumulative cash flows of sample 100 Litres SWH system in Sri

Lanka



69

-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


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)


• Size of SWH system: 8,000 Litres



Centre).

Figure 23 - Cumulative cash flows of sample 10000 Litres SWH system in Thailand



70

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


• return on investment

• Residential

(Independent house)

• SWH system since

2006


• Size of system: 100

Litres

5

Thailand • unit cost of fuels which solar


• Commercial (Hotel)

• SWH system since 5

Figure 24 - Cumulative cash flows of sample 10000 Litres SWH system in Philippines



71

Country Parameters considered for

financial evaluation

Installation details Payback

period (years)

• return on investment 1988


• Size of system: 10,000

Litres

Philippines • unit cost of fuels which solar


• incoming temperature of

water

• return on investment

• Commercial (Hotel)


• Size of system: 8,000

Litres

2



72

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



73

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].



74

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.



75

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.



76

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



77

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.



78

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.



79

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.



80

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%)



81

� 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.



82

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.



83

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.



84

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.



85

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)



86

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


systems” Part 1: Performance rating

procedure using indoor test methods

ISO 9459 – 1:1993

3 PNS ISO

9459-2:2008


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



87

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.



88

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



89

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].



90

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.



91

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.



92

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).



93

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).



94

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.



95

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.



96

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.



97

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.


The UPSL established in 1989 is the major testing facility for solar water heaters in the

Philippines.



98

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”



99

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)


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.



100

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)


collectors & components (services not for available for

manufacturers, only research purpose)



101

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.



102

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.


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



103

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.



104


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.



105

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/



106

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



107

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



108

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



109

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.



110

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.



111

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.



112

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.



113

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


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.



114

10.3 Thailand


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.



115

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


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.



116

10.5 Vietnam


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



117

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


• Lack of public

awareness to

judge quality

products versus

initial costs

The

Philippines

• No government involvement in

promotion of SWH


• 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


• 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



118

11 RECOMMENDATIONS

The following table summarises the present condition of SWH in these countries under reference and the recommendations for each.


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.



119


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.



120


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



121


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



122


Recommendation

Promote the

system that is suitable for the

application.

Promote the


application.

Promote the


application.

Promote the


application.

Promote 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)



123


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/



124


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



125


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/.



126


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

Solar Water Heater Market Assessment INTERNATIONAL INSTITUTE FOR ENERGY CONSERVATION - ASIA


127

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



• 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



128

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.



customers.

11.3 Thailand



• 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



129

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.


• Set up a mechanism to implement and make the product standards mandatory.

11.4 The Philippines



• 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.


• 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.



130



customers.

11.5 Vietnam



• 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.


• 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.



131

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



132

Sri Lanka





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].





Costs & Benefits:

Total cost of 225 litres solar water heating system 1400 USD



133

Thailand



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









Costs & Benefits:

Total cost of 200 litres solar water heating system 1,034 USD




134

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




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



135

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



136

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.



137

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



138

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



139

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.



140

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.



141

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



142

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:



143

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 ��



144

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.



145

Solar water heating systems can be Open or Closed (depending on means of water heating)

and Passive or Active (depending means of water circulation).



146

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



147

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



148

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.



149

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.



150

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)



151



152

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



153

Thailand

• Brochure used for promotion of DEDE scheme for solar water heaters



154

USA



155

• 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



156

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/



157

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

Solar Water Heater Market Assessment Consolidated Report · Bangladesh, Sri Lanka, Thailand, ......

Documents

Transcript of Solar Water Heater Market Assessment Consolidated Report · Bangladesh, Sri Lanka, Thailand, ......