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Price Reduction of Solar Thermal Systems

Lebanon´s success in driving down prices

Submitted by Baerbel Epp on February 1, 2018
Lebanon learning curveThe Lebanese solar thermal market has made great strides in bringing down the cost of solar water heating. Between 2010 and 2016, average system prices decreased by 43 %, from USD 1,880 to USD 1,313. This is one of the key findings presented by Tony Gebrayel, Energy Engineer at LCEC, the Lebanese Center for Energy Conservation, during the Beirut Energy Forum in September 2017 (see the attached document). The reduction was achieved by stable sales of between 50,000 and 60,000 m² of collector area per year.
Source: LCEC
 

IEA SHC Task 54: Investigating Cost Factors Along the Value Chain

Submitted by Baerbel Epp on May 22, 2017
Task 54 RWTH AachenResearchers have worked intensively for one-and-a-half years across national borders to find ways of reducing the costs of solar thermal systems and making them more attractive to end users. The members of Task 54 of the IEA Solar Heating and Cooling Programme, Price Reduction of Solar Thermal Systems, have discussed the effects of standardised product designs or changes in product offerings on cost structures. They have also analysed the entire value chain from component manufacture to system assembly and installation to help identify cost-cutting potential. This is the first time that methods of Process Cost Analysis are being adapted for the solar thermal business. “The share of overhead (e.g. marketing, sales, logistics, quality management and maintenance) has increased significantly, from 30 to 60 % of total product expenses over the last 50 years. This means we will have to investigate the relationship between technology, product portfolio and overhead,” explained Wolfgang Kramer, Head of the Solar Thermal Heating Systems Department at German-based Fraunhofer ISE. “To this end, the process cost analysis provides important quantitative information.” For example, the chart illustrates the issue of having a wider product portfolio and its impact on competitiveness and profitability. The model is currently being adapted for the solar industry in Task 54 as part of German research programme TEWIsol.
Chart: RWTH Aachen University
 

IEA SHC: Cost Reduction Analysis Workshops at German University of Stuttgart

Submitted by Baerbel Epp on September 8, 2016
Task54 Brussels WorkshopSystem cost reduction is one of the most urgent challenges of the solar thermal sector, especially in central Europe. The aim of Task 54 of the IEA Solar Heating and Cooling Programme, Price Reduction of Solar Thermal Systems, is to lower solar heat prices by up to 40 %. Germany’s main scientific contributions to the task have come from the two research projects KoST and TEWIsol, which have been co-funded by the German Federal Ministry for Economic Affairs and Energy. The corresponding Task 54 meeting will take place in Stuttgart on 6/7 October (see the attached programme) in conjunction with a workshop on 5 October to present and discuss KoST and TEWIsol (12 p.m. to 4 p.m.; held in German). The photo shows the Task 54 workshop organised in collaboration with the European Solar Thermal Industry Federation in Brussels in May 2016.
Photo: Fraunhofer ISE
 

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