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 Small Scale Funding Agreement (SSFA) Solar Water Heater Market Assessment Bangladesh, Sri Lanka, Thailand, The Philippines, Vietnam 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
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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
7.1.2 Sri Lanka ....................................................................................................................................... 95
7.2.2 Sri Lanka ....................................................................................................................................... 97
7.2.3 The Philippines ............................................................................................................................. 97
8.1.2 Sri Lanka ..................................................................................................................................... 101
8.2.2 Sri Lanka ..................................................................................................................................... 103
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.
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011
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.
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
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).
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Small Scale Funding Agreement (SSFA) August 2011 15
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
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Small Scale Funding Agreement (SSFA) August 2011 16
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%
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 17
during winter to 86-88% during monsoon4. The seasonal variations in temperature and
average rainfall are shown in Figure 3.
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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
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
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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)
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Solar Irradiance in Chittagong (Co-ordinates: 22.30 N, 91.810 E)Relative Humidity range: 55 - 86 %
Temperature Global Horizontal Irradiance (GHI) Latitude Tilt Irradiance (TILT)
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Solar Irradiance in Khulna (Co-ordinates: 22.80 N, 89.550 E) Relative Humidity range: 51 - 87 %
Temperature Global Horizontal Irradiance (GHI) Latitude Tilt Irradiance (TILT)
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Solar Irradiance in Rangpur (Co-ordinates:24.750 N, 89.240 E)Relative Humidity range: 48 - 86 %
Temperature Global Horizontal Irradiance (GHI) Latitude Tilt Irradiance (TILT)
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
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 19
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].
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Small Scale Funding Agreement (SSFA) August 2011 20
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
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Small Scale Funding Agreement (SSFA) August 2011 21
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
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Average rainfall (mm) Max. temperature (C) Min. temperature (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
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Small Scale Funding Agreement (SSFA) August 2011 23
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].
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Small Scale Funding Agreement (SSFA) August 2011 24
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
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 25
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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.
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
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 26
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
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 27
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].
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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
Solar Water Heater Market Assessment International Institute for Energy Conservation - Asia
Small Scale Funding Agreement (SSFA) August 2011 29
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.
The variations in temperature and rainfall in the country are shown in Figure 13.
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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
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Small Scale Funding Agreement (SSFA) August 2011 30
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.
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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
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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
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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)
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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.
The variations in temperature and rainfall in the country are shown in Figure 17.
0
50
100
150
200
250
300
350
400
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)
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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
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19 Hiep, L.C., 2009. Solar Energy and Solar Photovoltaic’ s in Vietnam. Available at:
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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.
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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.
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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).
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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).
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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.
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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.
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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.
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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.
7.2.3 The Philippines
The UPSL established in 1989 is the major testing facility for solar water heaters in the
Philippines.
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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”
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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)
Indoor and outdoor performance test for flat plate solar
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.
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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)
Indoor and outdoor performance test for flat plate solar
collectors & components (services not for available for
manufacturers, only research purpose)
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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.
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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.
8.1.4 The Philippines
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
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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.
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8.2.4 The Philippines
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.
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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/
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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
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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
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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
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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.
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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.
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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.
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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.
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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
Political/Policy/Technical Barriers
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.
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10.3 Thailand
Political/Policy/Technical Barriers
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.
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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
Political/Policy/Technical Barriers
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.
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10.5 Vietnam
Political/Policy/Technical Barriers
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
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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
• High initial costs
• Lack of public
awareness to
judge quality
products versus
initial costs
The
Philippines
• No government involvement in
promotion of SWH
• High initial costs
• 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
• High initial costs
• 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
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11 RECOMMENDATIONS
The following table summarises the present condition of SWH in these countries under reference and the recommendations for each.
Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
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.
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
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.
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
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
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
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
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Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
Recommendation
Promote the
system that is suitable for the
application.
Promote the
system that is suitable for the
application.
Promote the
system that is suitable for the
application.
Promote the
system that is suitable for the
application.
Promote the
system that is suitable for 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)
Solar Water Heater Market Assessment INTERNATIONAL INSTITUTE FOR ENERGY CONSERVATION - Asia
Small Scale Funding Agreement (SSFA) August 2011
123
Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
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/
Solar Water Heater Market Assessment INTERNATIONAL INSTITUTE FOR ENERGY CONSERVATION - Asia
Small Scale Funding Agreement (SSFA) August 2011
124
Parameter Bangladesh Sri Lanka Thailand Philippines Vietnam
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.,