An overview of international experience in manufacturing and promotion of solar water heating systems with price comparisons and lessons for South Africa

Abstract

Internationally, the use of solar water heaters is driven by sustainability issues, security of supply, and government incentives in a number of formats. Interest in solar water-heating within South Africa is fuelled by the target set for renewable energy, electricity generation capacity problems and, to a lesser degree, the need to encourage sustainable energy consumption. The study presented here was commissioned by the Central Energy Fund of South Africa to inform the public and private sectors of global best practice for available solar water-heating technologies, warranty periods, pricing, and standards. A questionnaire-based survey was addressed to International manufacturers, requesting offers for the export of solar water heaters into South Africa. Proposed systems were similar in size and type but differed strongly in price. Thus, countries were classified into low-price (“Group A”) and high-price (“Group B”) categories. Imported solar water heater prices, ex-factory, were compared with South African prices, which were found to be slightly higher than the imported ones. Reasons for this difference are discussed. International experience indicates a mix of demand and supply stimulation is required to develop the solar water-heating market. On the demand side, the study recommends a “virtual feed-in law” approach encouraging the replacement of electricity for water-heating by solar water heaters in analogy to the German Renewable Energy Sources Act (guaranteed purchase of renewable electricity for 20 years).