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Solar Power in China

China has a well established low-tech commercial solar thermal industry with over a thousand factories manufacturing and selling solar systems. Most of these collectors are used to heat water, and are sold without subsidies. Solar water heating techno
logy has made great progress and provides people in urban and rural areas with cost-effective energy services.

Solar thermal energy is competing with electricity in the supply of hot water in China. By the end of 2000 the accumulated installed area of solar water heater (SWH) systems in China was 26 million m2; far greater than the European Commission's target of 15 million m2 in 2004. The annual sales volume reached 6 million m2 in 2000, up from 4 million m2 in 1999.

As the industry grows, Chinese businesses are turning towards markets in Europe. Annual sales grew by 41% and 27% in 1999 and 2000 respectively. 1% of national production was exported to Japan, Germany, Belgium, Italy and to other Asian countries. This is a relatively small proportion but the average annual growth rate of exports has been about 40% in recent years.

In Europe, solar energy is viewed as a renewable energy option with high environmental value and low economic value. In
order to meet their national and international commitments, many European governments are stimulating domestic markets through a number of incentive programmes; by providing support for R&D, demonstration projects, market dissemination and raising public awareness.

In most provinces of China, however, the solar solution for domestic hot water supply is viewed as the most economical. China is a country with a rich solar resource. As the domestic hot water supply infrastructure in most cities is not well developed, although improving, the significant natural solar resource makes solar water heater systems an excellent alternative to fossil fuel boilers or electric water heaters, in providing hot water to households. The market potential exists for the provision of hot water for bathing for a population of 1.3 billion.
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Author - Euan Blauvelt - Director of Research, ABS Energy Research. ABS Energy Research publishes research on the www.absenergyresearch.com/energy-market-research-reports/renewable-energy-market-research-reports"> renewable energy industry and the www.absenergyresearch.com/energy-market-research-reports/renewable-energy-market-research-reports/solar-photovoltaics/reports/solar-thermal-power-report"> solar power industry as well as all other types of energy and environmental services. www.absenergyresearch.com

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