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Finance and Incentives

India: Industry Demands Equally Assertive Solar Thermal Publicity

Submitted by Baerbel Epp on September 20, 2016
India REI 16 PanelThe Indian government should provide the same assertive publicity for solar thermal technology as it had for solar PV because the population still needed to be made aware of the benefits of solar water heating. This was the major concern raised during the panel discussion Policy and Regulatory Framework for Solar Water Heater Market Development in India moderated by Jaideep Malaviya (third from right), Secretary General of the Solar Thermal Federation of India (STFI). Five industry representatives took part in the event held during the Renewable Energy India Exhibition and Conference 2016 near New Delhi at the beginning of September (from left to right): Rigal Patel (Redsun Solar), Bhoovarahan Thirumalai (Aspiration Energy), Devinder Kaushal (Inter Solar Systems), Saurabh Bhandari (Solarmaxx) and Chandrakant Shah (Kosol Hiramrut Energies).
Photo: STFI
 

South Africa: Solar Green Beer Production Creates High IRR

Submitted by Baerbel Epp on September 14, 2016
CBC Installation South AfricaSouth Africa’s solar process heat installations remain profitable when they have to compete against other heat sources, such as diesel, paraffin, petrol or gas, the Centre for Renewable and Sustainable Energy Studies (CRSES) at Stellenbosch University, South Africa, has concluded in a recently published paper. The researchers at the CRSES conducted a feasibility study of a 120.7 m² collector field that was to cover 60 % of the existing hot water requirements of Cape Brewing Company (CBC) based in Suider-Paarl, Western Cape, and analysed ten proposals submitted after the company’s invitation to tender in January 2015. South African E3 Energy won by offering an installation with a levelised cost of energy of 7.9 EUR cents/kWh, an internal rate of return of 16.7 % and a payback period of 9.3 years. CBC´s daily hot water demand is estimated to be 7,000 litres at 85 °C during 245 days a year, i.e., during a full year except for weekends, public holidays and two weeks of summer holidays. The system went into operation in November 2015 and the COO of CBC, Andy Kung, seems satisfied with the performance and the energy saving it offers. 
Still image taken from the short film
 

India: Tax Reform May Lead to System Price Increases

Submitted by Baerbel Epp on September 6, 2016
Gujarat Borosil Glass WorksIn India, there are multiple indirect taxes levied on most transactions. These taxes are divided into those collected by the federal government and the ones collected by state authorities. At the beginning of August, the Indian parliament passed the Goods and Services Tax (GST) Bill, which aims for a radical overhaul of the country’s tax system by merging federal, state and local taxes and turn India into a “single-tax” country. The GST is expected to improve the way business is conducted, make foreign investment more attractive and increase the gross domestic product by between 1.5 and 2 %. But the renewable energy industry may take a hit, according to statements from members of the Solar Thermal Federation of India (STFI). All tax incentives will end under the new GST regime, which is to be implemented by 1 April 2017.
Photo: Gujarat Borosil Glass Works
 

Germany: Today’s System Suppliers Wary of Fixed-Price Marketing Campaigns

Submitted by Baerbel Epp on August 8, 2016
Sonnenkraft Advertising 2005 and 2015The German solar thermal market is still stuck in recession. Although incentives are higher than they have ever been, demand has not really picked up over the first five months of this year, according to the market statistics by the two associations BSW Solar and BDH. The total collector area sold until the end of May was again down by 5.3 % compared to the previous year, although vacuum tubes have been more strongly affected by the slump (-18 %) than flat plate collectors (-4 %). Installers are viewed as the bottleneck in the supply chain and an increasing number of solar thermal suppliers have run advert campaigns to try and reach end customers on their own. Solarthermalworld.org has already reported on the new end-customer sales strategies employed by Thermondo. This article describes how the campaigns of another German system supplier, Sonnenkraft, have changed over the years. The image depicts an advertisement for the campaign from 2005 (left) and one from 2015 (right).
Image: Sonnenkraft
 

Switzerland: Solar Thermal Market Decline, Unclear Policy Situation

Submitted by Baerbel Epp on July 28, 2016
In 2015, the solar collector area newly installed in Switzerland shrunk by 16 % compared to 2014. Imports outperformed domestic production, and larger systems for multi-family and commercial buildings, particularly those with vacuum tubes, have gained market shares. These are some of the key findings of the annual study published by the Swiss Federal Office of Energy (see attached study in German and French). Some cantons will completely halt incentives for solar heat because of budget restrictions. 
 

Portugal: Two New Incentive Schemes on the Horizon

Submitted by Baerbel Epp on July 18, 2016
Aviso 20Good news for the Portuguese market: This year’s agenda includes two new schemes to support energy efficiency measures in buildings, and solar thermal has been put into the spotlight. The first programme, Aviso 20 – Edifícios Eficientes 2016 (Efficient Buildings), has already been open to applications since 8 July 2016. Its budget of EUR 1.1 million covers up to 60 % of the cost of efficiency measures, including new solar water heater installations, in existing residential and commercial buildings. The second programme, Casa Eficiente (Efficient Home), is still under development, but the scheme’s much larger budget of EUR 100 million will offer low-interest loans for efficiency measures in the residential sector. Obviously, both programmes are not exclusively solar thermal ones; they also support window replacement or additional insulation. 
 

Efficient building programme in Portugal

Submitted by Baerbel Epp on July 18, 2016
The investment grant scheme Aviso 20 – Edifícios Eficientes 2016 (Efficient Buildings) accepts applications between 8 July and 8 November 2016. Its budget of EUR 1.1 million covers up to 60 % of the cost of efficiency measures, including new solar water heater installations, in existing residential and commercial buildings.
 
Effective Date: 
Friday, July 8, 2016

California: San Francisco Passes First Mandate with Solar Thermal Option

Submitted by Baerbel Epp on July 14, 2016
LuminaltAfter Lancaster, Sebastopol and Santa Monica, San Francisco is now the fourth – and the largest – US American city to mandate the use of solar energy in residential and commercial newbuilds. It also has the first mandate in California which can be complied with by using either solar thermal or photovoltaics. The other three cities stipulated the installation of a PV generator at newly developed premises. The mandate in San Francisco aims at owners of new residential and non-residential buildings who apply for a building permit on or after 1 January 2017. The photo shows the typical multi-storey building structure and density of San Francisco. 
Photo: Luminalt
 

Slovakia: Newest Member Country of IEA Solar Heating and Cooling Programme

Submitted by Baerbel Epp on July 12, 2016
BobovnickySlovakia is the first country from Eastern Europe to join the IEA Solar Heating and Cooling Programme (IEA SHC). Since its admission, the small nation of only 5.5 million people has been represented by Artur Bobovnický (photo) from the Slovak Innovation and Energy Agency (SIEA). Bobovnický, who had previously held the job of Commercial Director at Slovakian SEVT, an office supplies business, took on the position of Director of Innovation and International Cooperation at SIEA in June 2014. Shortly thereafter, he was made aware of the great potential of the IEA‘s Technology Collaboration Programmes (TCPs) and successfully convinced the Slovakian government to sponsor membership.
 

ESCO Project Funding: Search for Attractive Case Studies to Fill Project Pipeline

Submitted by Baerbel Epp on July 5, 2016
Energy Contracting FundSolar heating and cooling has not been bankable yet despite various systems confirming expected performance and O&M costs. Project budgets are usually too small and the technology suppliers do not pass the stringent requirements of creditworthiness, which leaves the financial provider with a high-risk scenario. Accordingly, Energy Service Companies (ESCOs) have faced severe financing issues, which slow down the expansion of their business. It is good news to them that two recently launched projects also focus on facilitating the creation of an investment fund for solar thermal ESCO projects: First, there is the Feasibility Study - Energy Contracting Fund, which is jointly coordinated by the German Investment and Development Corporation Bank (DEG) and German SHC turnkey provider Industrial Solar; the second project, TrustEE – enhancing investment conditions for industrial energy efficiency and renewable energy projects, is from the EU and has been coordinated by Austrian institute AEE INTEC.
 

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