A lesson learned from the long-term subsidy program for solar water heaters in Taiwan

Abstract

The use of renewable energy is vital if carbon emissions are to be reduced worldwide. Solar water heaters (SWHs) are a mature technology and the Taiwanese government has supported purchase-based subsidy programs during the last three decades. Some regional programs have also been implemented. The historical data shows that these programs definitely have a strong impact on the local market and the uptake of SWHs. However, the effectiveness of the long-term subsidy program is subject of debate. This paper comprehensively reviews the long-term subsidy program (2000–2015) in the local market. The dominant factors for the dissemination of SWHs include financial incentives, economy of scale, housing status and economic aspects. Upon the termination of the current program, the enforcement of the “Greenhouse Gas Emission Reduction and Management Act” is expected to be the key driver for a sustainable SWH industry.