The company’s second system is 4,700 metres above sea level and was put up in Zhongba, near the border between China and Nepal, where winter temperatures reach minus 30 °C and the heating season lasts around 250 days. The investment in the solar installation including the new district heating network added up to around Renminbi (RMB) 173 million, or EUR 22.3 million. All of the money came from China’s central government.
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First SDH plant, built in Langkazi
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Second SDH plant, in Zhongba
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Construction time
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April to December 2018
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April to November 2019
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In operation since
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December 2018
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November 2019
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Situated at a height of
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4,600
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4,700
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Solar field
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22,000 m²
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35,000 m²
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Flat plate collector supplier
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Arcon-Sunmark, made in Vietnam
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Arcon-Sunmark, made in Vietnam
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Storage tank
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15,000 m³ of seasonal storage
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15,000 m³ seasonal storage
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Storage tank
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Pit heat storage
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Steal tank
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Heated floor area
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82,600 m²
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118,000 m²
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Solar fraction
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90 %
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>90%
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Total investment of solar system including district heating network
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RMB 120 million (EUR 15.4 million)
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up to RMB 173 million (EUR 22.3 million)
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Specific investment
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701 EUR/m²
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637 EUR/m²
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Backup system
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3 MW electric boiler
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Two 1.4-MW oil boilers and 200 kW photovoltaics
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Supply temperature
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65 °C
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63 °C
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Return temperature
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35 °C
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38 °C
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Key data on two SDH systems installed in Tibet
Source: Solareast Arcon-Sunmark
Management staff from the joint-venture partners toured both SDH sites at the beginning of October (see the photo below). The Danish side of the venture was represented at the event by Arcon-Sunmark’s Managing Director Thomas Karst and Torben Sørensen, Group Executive Officer at parent company VKR Holding. Karst became head of Danish-based Arcon Sunmark, a supplier of solar thermal turnkey systems and collectors, after
Ole Dalby stepped down last November. Its Chinese venture partner was represented by Xinjian Xu, Founder and Chairman of the Board of Solareast Holding, which trades under the brands Sunrain and Micoe, as well as Solareast Arcon-Sunmark’s Managing Director
Aaron Feng Gao.

Pleased with the success of the first SDH project in Langkazi (from right): Aaron Feng Gao, Managing Director of Solareast Arcon-Sunmark (China), Torben Sørensen, Group Executive Officer at VKR Holding (Denmark), Thomas Karst, Managing Director of Arcon-Sunmark (Denmark) and Jason Zhang, Technical Coordinator of Solareast Arcon-Sunmark.
Solareast Arcon-Sunmark operates the SDH systems on behalf of their owners, which are the local municipalities. Feng Gao estimates annual operation and maintenance costs to be EUR 515,000 in Langkazi, or 3 % of the initial investment. In Denmark, owners of SDH installations usually expect to pay 1 % for O&M: “We have employed eight operators for the first year, to guarantee safe operation. In Europe, we would need only two employees for the same job at a plant of this size. Moreover, the plant is in a remote location, far away from any bigger city, so labour and transport costs are high.” Still, Feng Gao expects “significantly lower operating expenses in the future, after operators have gained more experience.”
Organisations mentioned in the news article: