A NATIONAL FRAMEWORK FOR SOLAR HOT WATER - DEVELOPED FOR GREENPEACE CANADA PREPARED BY NITYA C. HARRIS
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A National Framework for Solar Hot Water Developed for Greenpeace Canada Prepared by Nitya C. Harris
A National Framework for Solar Hot Water Developed for Greenpeace Canada Prepared by Nitya C. Harris © copyright December 2006 Greenpeace Canada 250 Dundas St. W., Suite 605 Toronto, Ontario, Canada M5T 2Z5 Tel: 416-597-8408 Greenpeace is an independently funded organization that works to protect the environment. We challenge government and industry to halt harmful practices by negotiating solutions, conducting scientific research, introducing clean alternatives, carrying out peaceful acts of civil disobedience and educating and engaging the public. Greenpeace staff and volunteers seek to: • Protect biodiversity in all its forms •P revent pollution of the Earth’s oceans, land, air and fresh water • End all nuclear threats • Promote peace, global disarmament and non-violence.
Greenpeace Canada A National Framework for Solar Hot Water Table of Contents Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2. Solar Hot Water: Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.1 Why Solar Hot Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.2 Solar Hot Water in the World . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3. Solar Hot Water in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.1 Current Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.2 History of Solar Hot Water in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.3 Barriers to Solar Hot Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 4. Vision for Solar Hot Water in Canada . . . . . . . . . . . . . . . . . . . . . . . . . 20 4.1 Markets for Solar Hot Water Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 4.2 Technical Potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 4.3 Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 4.4 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 5. How to reach the Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 5.1 Key Issues for Sustainable Market Development . . . . . . . . . . . . . . . . . . . . . . . . . 24 5.2 Actions at the National level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 6 Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 APPENDICES A. SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 B. How do Solar Hot Water Systems Work? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 C. Solar Potential calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 D. Existing Renewable Energy Capacity 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 E. Lessons Learnt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 F. Solar Hot Water Industry in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Greenpeace Canada A National Framework for Solar Hot Water Foreword Let the Sunshine in – on a Million Solar Roofs Solar hot water has clear benefits for Canadians. By using free solar energy, you will reduce your energy costs. You will also reduce greenhouse gas emissions. The burning of fossil fuels is rapidly driving our planet into an unprecedented climate change crisis. Rising temperatures, rising sea levels, melting ice, and extreme weather events are just some of the most obvious impacts. Solar hot water can provide a large percentage of residential water and space heating, typically reducing annual energy costs 40 to 60 percent. Water and space heating account for about 80 percent of residential energy use. So why is Canada an international laggard in solar hot water? Austria, with a similar climate and a population of only 8 million, has about 110 times more solar hot water than Canada. The answer is obvious. While solar hot water is a cost-effective, mature, and sustainable technology, it has not had consistent meaningful support from federal and provincial governments. Solar hot water can reduce energy costs for the average Canadian, and protect the environment. Federal and provincial politicians must work together to create significant incentive programs and achieve these benefits. Greenpeace proposes a long-term national vision – the Million Solar Roof Program. Regional programs aiming at 100,000 or more installations are achievable in the short- term. It’s time to let the sunshine in – on a Million Solar Roofs. David H. Martin Energy Coordinator, Greenpeace Canada
Greenpeace Canada A National Framework for Solar Hot Water Acknowledgements We thank the following individuals for providing information and/or reviewing parts of this study: Yossi Cadan, Campaigns Director, Greenpeace Canada David Martin, Energy Coordinator, Greenpeace Canada Teun Bokhoven, Conergy Europe Werner Weiss, AEE INTEC, Austria Jeff Knapp, Renewable Energy Deployment Initiative, NRCan Clifford Maynes, Executive Director, Green Communities Canada Doug McClenahan, CanMet, NRCan Rob McMonagle, Executive Director, Canadian Solar Industries Association Joyce McLean, Director, Strategic Issues, Toronto Hydro Corporation Mary Pickering, Associate Director, Toronto Atmospheric Fund Melinda Zytaurk, General Manager, Ontario Sustainable Energy Association Guy Dauncey, President, B.C. Sustainable Energy Association
Greenpeace Canada A National Framework for Solar Hot Water List of Acronyms ACCC Association of Canadian Community Colleges BCSEA B.C. Sustainable Energy Association CANMET Energy Technology Centre (NRCan) CANREA Canadian Renewable Energy Association CanSIA Canadian Solar Industries Association CSA Canadian Standards Association DHW Domestic Hot Water DSHW Domestic Solar Hot Water ESTIF European Solar Thermal Industry Federation FCM Federation of Canadian Municipalities GJ Gigajoule—Unit of energy equal to 1,000 million joules or 950,000 BTUs. HRSDC Human Resources and Social Development Canada I/C/I Institutional, Commercial , Industrial sector ICLEI International Council for Local Environmental Initiatives IEA International Energy Association MW Mega Watts (1 million watts) NGO Non-governmental organization NRCan Natural Resources Canada OSEA Ontario Sustainable Energy Association PASEM Program for Assistance for Solar Energy Manufacturers PUSH Purchase and Use of Solar Heating Program PV Photovoltaics REDI Renewable Energy Deployment Initiative (NRCan) SEDP Solar Energy Demonstration Program SESCI Solar Energy Society of Canada Inc. SHW Solar Hot Water
Greenpeace Canada A National Framework for Solar Hot Water Executive Summary Worldwide, solar energy is playing an It is ascertained that large-scale use of solar increasingly important role in reduction of hot water systems in Canada will address a fossil fuel use and greenhouse gas emissions number of anticipated concerns and potential while fostering local economic development. opportunities for Canadians including the Solar hot water (SHW) applications are one of following: the least expensive ways to generate heat in • reduction of greenhouse gas emissions residential and commercial uses. Markets for solar hot water and space heating are increasing • reduction of other external costs casued b around the world at impressive rates of about fossil fuels and nuclear power 26% per year. Though solar hot water has grown • security and diversity of energy supply dramatically throughout the world, this has not • replacement of conventional non-renewable happened in Canada. The International Energy energies with renewable energy Association ranked Canada as 31st out of 41 countries for cumulative installed capacity of • de-centralized power owned by Canadians glazed SHW systems at the end of 2004. This • reduction of greenhouse gas emissions report examines the barriers to the installation • reduction of other external costs caused by of solar hot water systems in Canada and will fossil fuels and nuclear power address the questions: • creation of local jobs 1. W hy has solar hot water not flourished in Canada as a renewable energy solution for • development of domestic and export markets water and space heating? for solar expertise and equipment 2. W hat are the strategic initiatives that need However, there are still many barriers to the to be put in place nationally to facilitate development of solar hot water programs in the development and success of solar hot Canada. They include: water programs in communities throughout • lack of public awareness of the technology Canada? • lack of solar awareness in architects, engineers, builders, and in the real estate, tourism, banking, and commercial sectors • lack of qualified and motivated installers • quality assurance for solar systems • high up front costs for SHW systems • lack of incentives for homeowners and builders • lack of political will and governmental support.
Greenpeace Canada A National Framework for Solar Hot Water Austria’s successful solar hot water program National Actions Required is a good model for Canada to follow. Based on Austria’s market development, the target 1. Commit to a “Million Solar Roofs” program proposed for Canada is 1 million SHW systems for Canada. by 2025, with 2.5 million square metres of 2. Support the Million Solar Roof Program. commercial collector area. Forms of support could include: • direct financial support for purchase & European experience suggests that there are installation three critical components that form the basis • federal tax credits; establisment of a low- for sustainable SHW market development and or no-interest loan program growth. They are: • a Standard Offer Contract syserm for SHW. 1. Public awareness 3. Support a Solar Cities Program. 2. Strong market infrastructure 4. Implement a national awareness campaign to 3. Incentives and regulatory support. inform people of the advantages of using solar The implementation of any of these components energy. by itself leads to a strong potential of failure 5. Sponsor training of architects, engineers, of the program. Therefore, it is important that utilities, developers and real estate agents. all three components be addressed congruently and at national, regional and local levels. Overall 6. Implement demonstration projects to raise the stable, constant framework conditions prove profile of the technology. effective for market development. 7. Provide funding for a “Solar in Schools” program. A number of key initiatives that need to be in place for a strong solar program in Canada 8. Establish national standards for systems that have been discussed in this report. In the are harmonized with United States and Europe. course of implementing the actions towards a 9. Include SHW criteria in the National and comprehensive solar program, it is important to Provincial plumbing codes. involve actors at provincial, regional, local and the utility level. In this report, only the national 10. Establish national standards for installers. actions have been selected and summarized in 11. Subsidize training programs for plumbers and the table below. heating contractors. 12. Develop programs with utilities. 13. Initiate a Canada-wide solar system monitoring program to create a reliable data resource. 14. Establish a solidly funded long-term solar program in NRCan.
Greenpeace Canada A National Framework for Solar Hot Water 1. Introduction grown ten times faster than the overall economy over the past five years, and the annual yield Solar water heaters convert sunlight into heat (energy produced) for solar thermal collectors that is transferred by liquid to where it is used in 2004 was 58,117 GWh, equivalent to 9.3 or stored. Solar collectors are mounted in sunny billion litres of oil.2 As shown below in Figure locations and contain a heat transfer fluid, 1, the produced energy from solar thermal is usually water or glycol-based fluids. The heated second only to wind in comparison with other fluid is pumped from the collectors to a heat renewable energy technologies in the world exchanger which transfers the solar heat to while its installed capacity is greater than other either the building’s hot water or space heating renewables. system. Worldwide, the capture and use of solar energy SHW is a mature, economic and sustainable is playing an important role in local economic technology that can improve energy efficiency development while reducing CO2 emissions. Solar while reducing greenhouse gas emissions. The hot water (SHW) applications are one of the least global installed capacity of solar thermal systems expensive ways to generate heat in residential by the end of 2004 was 98,416 MW of thermal and commercial uses. It can typically provide energy.1 The world’s solar thermal sector has 40–50% of residential hot water heating and 15% Figure 1: Cumulative capacity and annual energy generated 2005 (IEA 2006) 1 See: International Energy Agency Solar Heating & Cooling Program, Solar Heat Worldwide: Markets & Contributions to the Energy Supply 2004. This global capacity includes 40,299 MW-th of evacuated tube water collectors, 34,184 MW-th of glazed water and 23,117 MW-th of unglazed water collectors, as well as 641 MW-th of unglazed air and 175 _MW-th of glazed air collectors. 2 The statistics are based on data collected from 41 countries, representing 57% of the world’s population and 90% of the solar thermal market. Source: IEA, 2006
Greenpeace Canada A National Framework for Solar Hot Water of commercial hot water heating requirements at 2. Solar Hot Water Background a cost below the current price of electric water 2.1 Why Solar Hot Water? heating in many provinces. Solar hot water panels are a cost-effective way to harvest the SHW systems provide energy security with sun’s energy. Instead of solar panels that make minimal environmental impacts. Advantages electricity, these solar panels collect the sun’s include avoided transmission losses as the heat. The heat from the collectors is then used energy is locally produced and the flexibility to heat the hot water, or pumped through water of the technology — systems can be easily lines embedded in the floor or through panels retrofitted to existing buildings or built into new mounted to the wall. Solar hot water systems buildings. And, SHW systems are competitive can be used in homes, commercial enterprises with conventional systems in many parts of such as restaurants, car washes, and hotels, in Canada.3 hospitals and for swimming pools. Furthermore, they contribute to community Though SHW has grown dramatically throughout economic development and a sustainable the world, this has not happened in Canada. This economy through the building of a domestic report will examine the barriers SHW in Canada industry. This renewable energy technology and will address the questions: directly addresses the reduction of energy and 1. Why has solar hot water not flourished in greenhouse gases from the two largest energy Canada as a renewable energy solution for uses for households. water and space heating? The establishment of large-scale use of solar 2. What are the strategic initiatives that need hot water systems in Canada will address a to be put in place nationally to facilitate number of anticipated concerns and potential the development and success of solar hot opportunities for Canadians including the water programs in communities throughout following: Canada?” • Security and diversity of energy supply Many communities across Canada have shown • Replacement of conventional non-renewable interest in accelerating the installation of energies with renewable energy solar hot water systems in their buildings. It is very difficult for each community to • De-centralized power owned by Canadians expend the energy necessary to develop solar • Reduction of greenhouse gas emissions infrastructure such as tax incentives, system • Reduction of other external costs caused by quality control criteria, installer qualification fossil fuels and nuclear power criteria, and regulations. These infrastructure measures need to be established nationally to • Creation of local jobs help these communities move forward with their • Export of solar expertise and equipment solar programs. Therefore, some key measures need to be in place nationally to help these communities develop initiatives that will foster the development of solar communities. 3 On an energy basis, the cost of solar thermal energy ranges between four to seven cents per kWh over the system’s 20 year life expectancy (DSF, 2004)
Greenpeace Canada 10 A National Framework for Solar Hot Water 2.1.1 2.1.2 Security and Diversity of Energy Supply Replacement of Conventional Energy As increasing population and urbanization Domestic water heating is the second largest continue to exert unprecedented strain on energy end-use for Canadian households, utilities in all the provinces, it is desirable to exceeded only by space heating, and as shown establish a diversity of energy sources for the in Figure 2, accounts for approximately 24 future. SHW has the potential to be widely percent of total household energy consumption used in homes and businesses across Canada (NRCan, 2006b). and can therefore reduce the need for outside energy sources. Since these systems also have Together, water heating and space heating the ability to contribute to the reduction of peak account for approximately 81% of the energy loads during the day, they can be a factor in use in a home which in 2004 constituted 1159 advancing utility load management goals and in PJ (Table 1). As can be seen from Table 2, 95% enhancing the longevity of fossil fuels. A study of this energy usage is from electricity and done by the David Suzuki Foundation (DSF, 2004) natural gas. Installation of an SHW system can indicates that while an average house in Ontario contribute a sizable portion of the energy used used 116 GJ of outside energy annually in 2001 towards both domestic hot water and space – this figure could be reduced to less than 50 heating for a home that is presently utilizing GJ when solar energy usage is maximized and electricity or natural gas. integrated with energy efficiency measures. Upon installation of a solar hot water system, the Table 1: Residential and Commercial/ solar portion of the energy costs for the home Institutional Energy Use (NRCan, 2006b) will not vary over the life of the system. The solar hot water system thus provides inflation- Residential proof energy security in the face of increasing Energy Use (PJ) fossil energy prices in the future. 2004 (12,375,000 households, 1545 Comm/Instit End-use million m2) Energy Use (PJ) Water heating 348 42 Space heating 811 N/A Table 2: Energy Source for Domestic Water Heating in Canada 4 Electricity 37% Natural Gas 58% 4 From NRCan, 2006b
Greenpeace Canada 11 A National Framework for Solar Hot Water In Residential and Commercial sectors, total Table 3: Residential Water Heating energy demand is expected to increase at about GHG Emissions by Energy Type 1 percent per year for the residential sector, % of total GHG and at 2.4 percent per year for the commercial emissions for sector (NRCan, 2006c) even with the inclusion GHG Emissions water heating in of intensity improvements in these sectors. Energy Type (Mt of CO2e) 2004 residential sector This sizable demand for energy for domestic Electricity 8.03 41.8% hot water heating can be augmented by SHW systems. Space heating can also be provided by Natural Gas 10.12 52.7% SHW in new construction. Heating Oil 0.97 5.1% 2.1.3 Other 0.05 0.3% De-centralized Power Owned by Canadians Wood 0.02 0.1% The absence of transmission and distribution losses is another advantage of such a de- Total 19.20 100% centralized energy source. In the wake of concerns of energy being controlled by trans- national corporations or by hostile nations, the Table 4: GHG Emissions from space heating locally produced energy from solar hot water by Energy Type: Single Detached Houses systems has the added attribute of being owned by Canadians. 2004 GHG % of total GHG Emissions (Mt of emissions for 2.1.4 Energy Type CO2e) space heating Reduction of Greenhouse Gas Emissions Electricity 5.80 18.7% There is now worldwide agreement between Natural Gas 17.36 56.1% scientists that the burning of fossil fuels such as coal, oil and natural gas is the cause of climate change. Heating Oil 5.53 17.9% In 2004, approximately 25% of total Canadian residential greenhouse gas (GHG) emissions was Other 0.51 1.6% attributed to domestic water heating, an estimated 1.77 5.7% Wood increase of 14% since 1990 (NRCan, 2006a). Table 3 below shows the breakdown of GHG emissions Total 30.97 100% from residential water heating by energy type. The installation of a solar hot water system can eliminate between 1 to 2 tonnes per home per year Table 5: GHG Emissions for Water and Space based on energy usage. Heating In the space heating sector, single detached Residential Comm/Instit houses contribute 75% of the GHG emissions GHG Emissions GHG Emissions of all emissions due to space heating in the End-use (Mt) (Mt) residential sector. The following table shows the Water heating 19 3 breakdown by energy type for GHG emissions Space heating 41 N/A for space heating in single detached homes.
Greenpeace Canada 12 A National Framework for Solar Hot Water The federal government ratified the Kyoto 2.1.5 Reduction of Other External Costs Protocol in 2002, which commits Canada to Caused by Fossil Fuels and Nuclear reduce its GHG emissions by 6 percent per year (from 1990 levels). Canada’s 2002 climate In looking at the comparative costs of different change plan committed the country to cut energy sources, it is important to identify the greenhouse gas emissions by 240 million tonnes total cost of the energy including the public a year by the end of 2012. As space heating health and environmental costs. This is a difficult and water heating contribute 79% of total GHG task and is open to many interpretations. One emissions from a home (NRCan 2006a), there is such comparison has been formulated by considerable potential to reduce GHG emissions Professor Bainbridge (Fig. 3). Although there by integrating solar hot water into space heating is considerable discussion about the exact and water heating in buildings. The installation costs of each energy source, the relative costs of a solar hot water system alone can eliminate deserve to be examined. This figure shows that between 1 to 2 tonnes of CO2 per home per year solar hot water is the leader in this realm, most based on energy usage. probably due to the simplicity of the technology and the resulting low environmental and social impacts. Further research is required to quantify the external costs of energy sources. This is an essential step to ensure more accurate price comparisons between distributed generation options such as SHW, and fossil fuel and nuclear- generated energy. Source: Bainbridge,5 D.A. 2004. The price falls short. Solar Today 18(5):62,59 5 David Bainbridge is an Associate Professor of Sustainable Management, Marshall Goldsmith School of Management, Alliant International University, San Diego, California
Greenpeace Canada 13 A National Framework for Solar Hot Water 2.1.6 Creation of Local Jobs for hot water and space heating, 28% for heating swimming pools, and 2% for drying agricultural The solar hot water industry is ideal to produce products and space heating. All solar thermal jobs at the local and national levels as most of systems installed by the end of 2004 generated the jobs relate to marketing, distribution, design the equivalent of 58,117 GWh (209,220 TJ), which and installation of the systems. The Canadian corresponds to an oil equivalent of 9.3 billion Solar Industries Association estimates that 6 litres, and helped to avoid the annual emission jobs can be created per 1,000 m2 of solar hot of 25.4 million tonnes of CO2. Compared with water collectors installed without the inclusion wind, geothermal and photovoltaic energy, solar of maintenance personnel.6 The solar thermal heating’s contribution meeting global energy sector in Europe employs over 20,000 people demand is second only to wind power and much and is a 2 billion Euro business.7 bigger than photovoltaics’ contribution. This fact is often underestimated ( IEA, 2006). 2.1.7 Export of Solar Expertise and Equipment The world’s largest market for solar hot water collectors is China, with over 60 percent of An ambitious target for solar hot water the global installed capacity in 2005. China’s systems in Canada will develop a promising national goal is 300 million square meters of market opportunity to create new business solar hot water systems by 2020 (REN21,2006). opportunities for this resource in our country, Although there are no explicit policies for and export opportunities for solar expertise promoting solar hot water in multi-storey urban and solar systems to other parts of the world buildings, building design and construction by including the United States. developers has begun to incorporate solar hot 2.2 Solar hot water in the world water as energy costs rise and public demand increases, particularly during the current Markets for solar hot water and space heating construction boom. There are also government are increasing around the world at impressive programs for technology standards, building rates of about 26% per year. Existing solar hot codes, and testing and certification centers to water collectors have the fourth highest capacity help the industry mature. (2004) in renewable energy production after large hydro, small hydro and biomass. Forty Germany is the leading solar thermal market million households out of a total 1600 million in Europe and in 2005 installed about 950,000 households worldwide have solar hot water m2 (665 MWth) in 2005 (Estif 2006). These (DSF, 2004). systems are currently promoted by the German government through a market incentive program The development of solar hot water programs that provides a subsidy dependent on collector in many countries has been driven by the surface area. However, the German government awareness of potential world markets and export and industry are collaborating to replace this opportunities by federal and regional levels of program with a new law that would provide government. At the end of 2004, a total of 164 a payment for every equivalent kWh of heat million square metres (m2) of solar thermal generated by renewable energies (this system collectors were installed in 41 IEA member is inspired by the REM currently in place for PV countries, with about 71% of collectors in use electricity generation) (DSF, 2004). 6 From DSF, 2004 7 From: www.estif.org Solar Thermal markets in Europe June 2006
Greenpeace Canada 14 A National Framework for Solar Hot Water In Europe, the Renewable Energy Council called must be 100% solar. Buildings undergoing for a European Union Directive to support major refurbishment are also subject to the ‘renewable heating’ including solar and, in ordinance. The size category means typically February 2006, the European Parliament that all commercial buildings, and all residential directed the EC to develop a directive to promote buildings of 16 or more households, are subject Green Heat. Half the energy on that continent to the ordinance. Due to the ordinance, the is consumed for space heating, and politicians solar thermal capacity per capita has increased want the share of Green Heat to double by twenty fold from 1.1 m2/1000 inhabitants to 2020.8 22.4 m2/1000 inhabitants. (ASIT, 2006) Over 60 Councils have followed Barcelona’s lead and Beyond China and Germany, at least 17 countries, by March 2006, over 8 million Spanish citizens and probably several more, provide capital were subject to this ordinance (ASIT, 2006). grants, rebates, or investment tax credits for solar hot water/heating investments, including In 2006, the new Technical building code was Australia, Austria, Belgium, Cyprus, Finland, adopted by the Spanish government requiring France, Germany, Greece, Hungary, Japan, the that at least 30 to 70% of the domestic hot water Netherlands, New Zealand, Portugal, Spain, demand be covered by solar or other renewable Sweden, the United Kingdom, many U.S. states, energy forms. Portugal has also adopted a and the U.S. federal government. Capital grants framework law with a similar content, though are typically 20–40 percent of system cost. the technical parameters must still be specified Investment tax credits may allow deduction of all (ESTIF, 2006). or part of the investment cost from tax liability. Italy’s renewable energy certificates also apply to solar hot water, so-called “white certificates.” 3. SOLAR HOT WATER IN CANADA Since 1980, most buildings in Israel have been 3.1 Current Situation required to have solar hot water collectors. The technical requirements vary by size and type of The International Energy Association report (IEA, building. Certain industrial, medical, and high- 2006) ranked Canada as 31st out of 41 countries rise buildings are exempt. for cumulative installed capacity of glazed SHW systems at the end of 2004. Figure 4 indicates A number of major cities around the world the cumulative collector area installed in Canada have enacted ordinances requiring solar hot to the end of 2004 from this report. water in new buildings or providing incentives or subsidies for solar hot water investment. As can be seen from these figures, the bulk Examples are Barcelona (Spain), Oxford (UK), and of the systems installed in Canada are with Portland, Oregon (USA). Barcelona in particular unglazed collectors. Approximately 97% of all has enacted one of the most far-reaching of liquid unglazed collectors are sold into the such policies. Starting in 2000, the Barcelona residential sector for swimming pool heating.9 Solar Thermal Ordinance has represented a A survey conducted by NRCan indicated that major milestone in urban energy policy. The sales of glazed and evacuated tube collectors ordinance requires all new buildings above a (between 2002 and 2004) were split between the specific size category provide at least 60 percent residential and I/C/I sectors, with approximately of their domestic hot water energy demand from 67% in the residential sector. The residential solar thermal collectors. Swimming pool heating sector sales were primarily for domestic water 8 From: CANREA, 2006 9 NRCan, 2005
Greenpeace Canada 15 A National Framework for Solar Hot Water heating, although in 2004, 23% of sales in the residential sector were for combination domestic hot water and space heating applications, indicating strong growth in this application. Sales of these collectors into the I/C/I sector were primarily for hot water applications. 3.2 History of Solar Hot Water in Canada The question of whether Canada has enough Table 6: Mean Insolation values for solar energy to make a significant impact on our Canada energy needs often arises in the discussion of solar energy projects in Canada. An evaluation10 Mean Daily Insolation of the mean daily insulation for Canada’s for latitude tilt provinces and territories performed by NRCan Region (kW/m2) provides the information in the table below. Alberta 4.73 These numbers are comparable to insolation Saskatchewan 4.99 values between 2.4 and 4.4 kWh/m2/day11 for Austria and Germany—two of the leading solar Quebec 4.33 energy producers in Europe. The efforts of Ontario 4.22 Austria and Germany are proven models that Manitoba 4.55 political will can produce a successful solar program in areas that have average values of P.E.I. 4.06 solar radiation. Newfoundland/ 3.39 Labrador CanSIA has also produced a graph (figure 5) 12 that compares the solar radiation in Miami and Nova Scotia 3.92 Toronto. The figure indicates that except for the New Brunswick 4.19 winter months, both locations have comparable British Columbia 3.80 amounts of radiation in spite of the considerable difference in their latitudes.13 Territories 3.67 Solar energy programs have had a chaotic history in Canada. Increasing oil prices in the late 1970s and early 1980s resulted in the emergence of become established. Another such program a number of federal solar hot water programs. was the “Purchase and Use of Solar Heating” One of these was the “Program for Assistance (PUSH) Program –a program aimed to incent for Solar Energy Manufacturers” (PASEM), government departments to purchase solar that provided grants to solar companies to products. However it was soon realized that 10 Pelland, S., Poissant, Y. “An Evaluation of the Potential of Building Integrated Photovoltaics in Canada.” 2006, NRCan, Canmet Energy Technology Centre 11 https://www.rvr.ie/default.aspx?subj=html/solarintro 12 Source: CanSIA presentation: Toronto as a Solar City. May 2006. http://www.cansia.ca/downloads/report2006/P-16.pdf 13 Latitudes: Toronto: 43°40′ Miami: 25°46′
Greenpeace Canada 16 A National Framework for Solar Hot Water the government represented only a small part schedule of decreasing contributions was also of the potential market. So, the PUSH program established in relation to these targets. Figure 6 was closed in 1983 and the solar program was shows the historical sales in Canada for solar focused on the private sector. thermal collectors provided through a recently completed survey14 of solar hot water collector In 1983, the Solar Energy Demonstration Program sales.15 The figure clearly shows increasing (SEDP) was approved. Contributions were made solar collector sales due to the SEDP program. available to solar installations that qualified The SEDP was seen to have had a significant under one of three approved sub-programs: impact on improving the market penetration 1) the Solar Domestic Hot Water sub-program rate of solar energy systems in the Canadian market. (SEDP, 1987). However, the time frame 2) the Commercial/Industrial sub-program for the SEDP program was too short to allow 3) the Special Projects sub-program. more development of the solar sector. A longer- term program with gradual subsidy decline was The program was scheduled to run for five needed for more sustainable results.16 With years and energy performance targets were the fall of oil prices, the various government established for each year. A corresponding deployment programs for solar thermal systems 14 Final Report Survey of Active Solar Thermal Collectors, Industry and Markets in Canada, 2005 http://www2.nrcan.gc.ca/ es/erb/erb/english/View.asp?pf=1&x=455&oid=1183 15 The compilation of data included information from previous surveys and reports and estimation of sales for periods (1987 to 1994) where there were no records available. 16 Conversation with Doug McClenahan, CanMet, August 15,2006
Greenpeace Canada 17 A National Framework for Solar Hot Water ended in the period of 1986-1987 (the last solar thermal projects in Canada, including program was for solar DHW systems which ended many of the larger installations of various in March 1987). Between 1986 and 1988 the solar collector types. A number of interruptions in industry experienced a collapse of sales. this program have reduced its effectiveness. Recently, the level of interest in the program It is interesting to note that the SEDP evaluation has risen dramatically. report points out “Further costs and technology improvements alone, are not likely to be To address the largest solar hot water market sufficient, without continued program subsidies, in Canada, REDI has allowed a number of pilot to reduce the payback period of future solar domestic solar hot water projects to develop over installations to the point where solar could the years. These projects have given increased attract a sizable market share (SEDP, 1987). exposure to solar domestic hot water with the installation of a limited number of systems. Commencing in 1998, the Renewable Energy The pilot projects have taken place in Ontario Deployment Initiative (REDI), a program of Natural in Toronto, Peterborough, Kingston, and Perth, Resources Canada (primarily for commercial and in Courtenay, B.C., Bathurst NB., and on a systems), has provided funding to dozens of province-wide basis in B.C.
Greenpeace Canada 18 A National Framework for Solar Hot Water 3.3 Barriers to Solar Hot Water However, a program is presently not available development for inexperienced installers. There is also a need to involve roofers and the heating industry in A. Awareness & Promotion the installer-training program. 1. Existing Homes 4. Motivation of Installers One of the major barriers to the development of solar hot water systems in Canada is the Besides being qualified, installers need to be lack of public awareness about the technology. motivated to promote solar in their communities. Most Canadians are not aware of the difference Installers need to offer solar in an active manner between photovoltaics and solar hot water rather than as an alternative energy source. systems. The Ipsos-Reid Poll (2002) done on Active marketing of SHW needs to be part of behalf of NRCan indicates that approximately installer training. 1% of Canadians are aware of solar hot water. Besides homeowners, there is a need to inform 5. Quality of Solar Systems the tourism, sports and recreation sectors, health A major challenge for the industry is to ensure care, banking and commercial sectors of the that the credibility of the systems is maintained. solar hot water products available, their features Systems with inferior quality levels may be sold and numerous benefits. Market research has and often it is not easy for the customer to find not been done to determine the messaging that good information on the quality of the products resonates with Canadians regarding solar. There on the market. A certification program for is also low media interest in this technology, packaged solar domestic hot water systems was which accentuates the problem. introduced in 2004 based on CSA standards. At present, Canada does not have any CSA 2. New Build Sector certified systems although a number of systems In the new build sector, there is very little are awaiting certification. The CSA process awareness of solar hot water amongst engineers is slow and can be cost prohibitive to smaller and architects. This results in a lack of manufacturers. Furthermore, there is presently integration of solar systems into the architecture no harmonization with European or American of the buildings. This lack of awareness also certification for solar systems. applies to builders, developers and building associations who need to be educated about C. Incentives and Regulations this technology. 6. Up front Costs of Purchase of B. Market Infrastructure System 3. Lack of Qualified Installers Unlike other energy sources such as natural Due to the small scale of this industry in gas and electricity, harnessing the energy from Canada, there is a lack of qualified installers of solar presents an up front cost that is usually solar hot water systems. A number of installers prohibitive to the user. A number of states in the who were active in the field in the 1980s U.S. (in conjunction with financial institutions) have gone on to other businesses during the offer low-interest loans to alleviate this concern. decline of solar in the 1990s. The Canadian This is presently not available to Canadians. Solar Industries Association presently offers a certification program for experienced installers.
Greenpeace Canada 19 A National Framework for Solar Hot Water 7. Availability of Incentives D. Political Will Initiatives in Europe have succeeded due to 10. Lack of Political Will and Interest a consistent set of incentives provided to Japan and Germany are two countries with homeowners and businesses. Such incentives relatively modest solar resources but have are not available today to Canadian homeowners. nevertheless quickly become world leaders It should be noted that many of the incentives in solar photovoltaic (PV) technology. The identified for solar systems would not be needed experience of these leaders clearly illustrate that if the environmental and public health costs of strong solar markets can be quickly established conventional energy sources were included in if supportive policy measures are implemented their price or if the current subsidies to the fossil that focus on reducing the risk for investors in fuel and nuclear sectors were phased out.17 the technology and business through the use of long-term adequate price guarantees, strong Commercial systems can obtain a rebate (until government R&D, and active market penetration. the end of 2006) from the REDI program. In Canada, at present, there is little interest in However, the stop and go nature of the REDI solar energy at the national level. incentives has been a barrier to commercial solar development. 11. Unstable Policies Unstable policies and incentives can seriously 8. Incentive for Builders of New Homes damage the production and sales cycle and The real estate market does not recognize any undermine consumer confidence. In countries added value to a home that has an installed with successful solar programs, long-term solar system. Therefore, builders do not see the policies provide a signal to the market and value of installing solar systems on new homes encourage the solid growth of the solar industry. as they perceive the savings to benefit only the Stop and go incentives and solar programs in buyer. The absence of regulations that specify Canada have been major barriers for the solar energy usage limits for building components industry. such as water heating or space heating systems 12. Importance of Bringing also prevent builders from installing solar hot water systems in new homes. Municipalities on Board Municipalities can play a key role in the 9. Incentive for Owners of Commercial implementation of solar programs as they are Systems large end users of energy. There is a need to The owners of commercial buildings are usually develop ways to engage municipalities and to not the energy consumers and so there is little stimulate the interest of municipal staff and incentive for these parties to install energy politicians. saving equipment on their buildings as the energy bills are passed on to the tenants. 17 Canadian government funding has averaged $1.4 billion per year to the fossil fuel industry, and $332 million per year to the nuclear industry over the last few decades (CanSIA, 2004)
Greenpeace Canada 20 A National Framework for Solar Hot Water 4. VISION FOR SOLAR HOT 4.2 Technical Potential of Solar WATER IN CANADA Hot Water in Canada in 2004 4.1 Markets for Solar Hot Water Using the energy consumption from 2004 Systems (Table 7) and assuming that all households would install solar hot water for water and Table 7 below indicates the energy usage18 for space heating. (In Austria in 2006, 50% of in residential and commercial buildings for installed collector array is for combi systems water heating and space heating in 2004. The that include water and space heating). commercial buildings considered were the prime candidates for solar water heating including If 100% of the roofs could accommodate solar: educational services buildings, health care Total Water and Space Heating energy that could buildings and accommodation and food services be provided by solar hot water = 1201PJ X 0.5 solar buildings. Space heating for these commercial fraction = 117PJ = 32.5 million MWh per year buildings is not considered to be viable at this If 40% of the roofs could accommodate solar: time as it would be a difficult task to retrofit 46.8 PJ =13 million MWh per year these buildings to accommodate space heating The technical potential can also be arrived at by from solar systems. looking at the solar installed capacity in other This table clearly shows that the major market countries. Figure 7 provides a comparison of the for solar hot water systems is the residential cumulative installed capacity of solar hot water sector in Canada. Although the commercial/ collectors on a per capita basis for countries institutional market is smaller by comparison, it that have similar climates to Canada. This figure is still substantial enough to be included in an indicates that Canadian capacity needs to Action Plan. multiply hundredfold to meet the levels of solar hot water in Austria in 2004. 18 Source: http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/trends_res_ca.cf, http://oee.nrcan.gc.ca/corporate/statistics/ neud/dpa/tablestrends2/com_ca_32_e_1.cfm?attr=0
Greenpeace Canada 21 A National Framework for Solar Hot Water Table 7: Energy Use and GHG Emissions for residential and commercial buildings Residential Energy Use Residential GHG Comm/Instit Energy End-use (PJ) 200419 Emissions (Mt) Use (PJ) Water heating 348 19 42 Space heating 811 41 N/A Total 1159 60 4.3 Targets for Solar Hot Water Table 8: Solar Hot Water targets for Canada based on other country installations in Canada Cumulative Cumulative Cumulative A conservative estimate given from NRCan in the installed solar Installations by Renewable Energy in Canada Status Report 2002 Possible Targets area energy sector indicates “There are approximately 12,000 solar water heaters currently in Canada, representing 10X Canadian 86,600 residential less than one percent of the solar hot water installations in 775,880 systems plus 543 MWth market.”21 2004 (similar to m2 256,000 m2 Sweden 2004) comm.20 Figure 822 (next page) compares solar collector 20X Canadian 173,200 sales between Austria and Canada. It is installations in residential interesting to note that sales in Canada were 1,551,760 1,086 2004 (similar systems plus higher than those in Austria during the 1980s m2 MWth to Slovenia & 512,000 m2 while the Canadian solar program was in place. Switzerland 2004) comm. Austria’s program continued, resulting in today’s leadership position while the termination of 346,400 40X Canadian Canada’s solar program resulted in the collapse residential installations in 3,103,520 2,172 of the solar market. The importance of federal systems plus 2004 (similar to m2 MWth commitment to solar is clearly indicated by this 1,024,000 m2 Germany 2004) picture. The example of Austria’s solar market comm. demonstrates the ability to achieve targets 866,000 with the establishment of consistent and strong 100X Canadian residential federal involvement. installations in 7,758,800 54,300 systems plus 2004 (similar to m2 MWth 2,560,000 m2 Austria 2004) comm. 19 Source: http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/trends_res_ca.cf, http://oee.nrcan.gc.ca/corporate/statistics/ neud/dpa/tablestrends2/com_ca_32_e_1.cfm?attr=0 ; This energy use is for 12,375,000 households, 1545 million m2. 20 An assumption of 67% residential and 33% commercial is made for these calculations as per the latest ratios in the NRCan solar collector sales survey. 21 From Natural Resources Canada Website:http://www2.nrcan.gc.ca/es/oerd/english/view.asp?x=700&mid=38 22 CanSIA, Solar in Canada 2006: The Turning Point. August 2006.
Greenpeace Canada 22 A National Framework for Solar Hot Water Targets Residential Based on the graph above, the collector 1 million solar hot water systems in Canada by sales achieved by Austria is a good target if 2025 similar policies are put into place for market Energy Saved: 3,000,000 MWh per year development. From Table 8, a target to match GHG Reduction: 1 to 2 million tonnes per year Austria would be 866,000 residential systems Sales: $5 billion plus 2,560,000 m2 of commercial collectors. Commercial The above figure indicates that this growth in 2.5 million m2 of commercial collector area Austria has primarily occurred between 1989 Energy Saved: 1,500,000 MWh per year and 2004, over a period of 15 years. Although GHG Reduction: 0.5 million tonnes per year energy costs in Canada are much lower than in Sales: $1.5 billion Austria, it can be assumed that such a target could be accomplished in a similar time line as the systems have matured and the Canadian industry and government can learn from European programs. With these assumptions the following target is proposed for Canada:
Greenpeace Canada 23 A National Framework for Solar Hot Water 4.4 Vision European Solar Thermal Vision 2030 Industry and research institutes from all Solar thermal systems will look very different in around Europe have recently developed the the future. Solar thermal collectors will cover, Solar Thermal Vision 2030, a document which together with photovoltaic modules, the entire outlines the sector’s vision for the future use south-oriented roof area of buildings. Roof of solar thermal energy. For the building sector, windows will be integrated. The storage tank which is responsible for 40% of Europe’s energy will be able to store the solar heat over weeks supply, it presents the concept of the Active and months, but will not be too large. The solar Solar Building, which will be entirely heated and thermal energy system will provide domestic cooled by solar thermal energy and which is hot water, room heating in winter and room expected to be the building standard in 2030. cooling in summertime, thus greatly increasing The overall vision of the solar thermal branch the overall comfort of the building.24 is to supply up to 50% of the low-temperature energy demand of Europe by solar thermal by 2030.23 In a similar manner, it is imperative for Canada to have a strong vision for the role of solar hot water systems in its energy future. The following is a starting point for such a vision. We envision a future where solar hot water systems: • Become a significant energy provider for Canadian homes and businesses by becoming a mainstream energy technology; • Create jobs in communities across Canada while becoming a source of export potential; • Become a significant part of the solution to reduce greenhouse gas emissions in Canada; • Empower citizens to make their own individual contribution to climate change; • Help reduce demand on electricity grids. 23 From the press release launching the European Solar Thermal Technology Platform. See: http://www.esttp.org/cms/upload/ pdf/ESTTP_launch_press_release.pdf 24 Solar Thermal Vision 2030 See: http://www.esttp.org/cms/upload/pdf/Solar_Thermal_Vision_2030_060530.pdf
Greenpeace Canada 24 A National Framework for Solar Hot Water 5. HOW TO REACH THE VISION Germany In the period from 1995 to 2001 5.1 Key Issues for sustainable the German solar thermal market showed good development. The demand for solar thermal SHW market development systems rose by an average of 30% per year. European experience25 suggests that there are There were three main reasons for this market three critical components that form the basis success. First the public awareness of solar for sustainable SHW market development and energy and therefore the interest in the use of growth. They are: solar thermal increased. Second the government strengthened subsidies for solar thermal 1. Public Awareness systems. Third the solar branch of government 2. Strong Market Infrastructure – with established solar companies and several 3. Incentives and Regulations new companies – worked very hard to build up the market and to activate plumbers to sell and The implementation of any of these components install solar systems (SIA2). by itself leads to a strong potential of failure of the program. Therefore, it is important that all three components be addressed congruently and at national, regional and local levels. Overall stable, constant framework conditions prove effective for market development. 25 Conversations with Teun Bokhoven, Zen International, March 2006
Greenpeace Canada 25 A National Framework for Solar Hot Water 5.1.1 Public Awareness and Promotion Netherlands In 1996, the Dutch gov- ernment presented its plans for the introduction Raising awareness is the key to overcoming the of renewable energy. For solar thermal, the barrier to growth that is representative of the target was set at 400,000 solar systems in 2010 lack of knowledge regarding this technology and 1 million systems in 2020. at all levels of society. Basic understanding of solar hot water systems, their use and benefits is needed. Most people do not appreciate Public Campaigns the difference between obtaining solar power Information and promotional campaigns are through photovoltaics and solar heat from essential to stimulate market growth. Therefore, solar thermal systems. This means that they a mass public campaign is one key element of will have to be informed with basic information the solar hot water strategy. It should define the and guided through the whole process of benefits of solar in providing long-term security understanding the technology before they can of energy supply, the minimal environmental be expected to invest in it. Information regarding impact, and promote the “feel good” factor of solar hot water systems need to be provided solar. It is important that the image of solar to consumers, installers, architects, engineers, thermal be linked to quality and reliability. builders, developers, real estate agents and Commercial marketing and public awareness policy makers. campaigns should go hand in hand for optimum effectiveness. In Austria, a public awareness Targets campaign was launched in 2000 to raise the Targets are important to set as they can be a image of solar technology and to make aware of major driver in the development of the solar hot its advantages. An important factor for success water program. The European White Paper target in Austria was the motivation of the general is 100 million m2 installed by 201026 and many public. European countries have set national targets for their solar hot water programs. The main goals of promotion campaigns can be: • to create awareness of the potential for solar A target such as a 1 million solar roofs program in the region and the use of solar thermal; is an effective promotional tool to raise interest in the populace and to attract partnerships from • to provide knowledge about financial and utilities, provincial and municipal governments. technical issues; The national target can be broken down into • to motivate potential users to assess the provincial and territorial targets. potential for solar thermal in their building; • to assist potential users by providing independent information to facilitate their decision to install a system; and • to assist potential users to find reputable installers and quality systems. 26 from SolTherm report
Greenpeace Canada 26 A National Framework for Solar Hot Water National level campaigns need to be carefully recently established is the Solar Cities program designed to reach the targeted groups of in Australia.28 Solar Cities is a $75.3 million potential users whether they be a specific initiative designed to demonstrate how solar market segment or a geographical area. Market power, smart meters, energy efficiency and research that determines effective messaging for new approaches to electricity can combine to SHW will be useful. In areas where solar thermal provide a sustainable energy future in urban is not yet widely used, demonstration projects locations in Australia. Four Solar City projects can be a very useful tool to support awareness will be supported in this program. and promotion campaigns. Another example is the U.S. Solar Cities Germany In order to increase the public Strategic Partnership funding initiative in 2006. awareness, the solar thermal campaign‚ ‘Solar– This is a funding opportunity that is seeking na klar!‘ (‘Solar – that’s clear!’) was launched in to form strategic partnerships with U.S. cities 1999. With a budget of 10 million DM (5,1 million and with the U.S. Department of Energy. These Euro) over the 3 years, this campaign played partnerships are intended to help accelerate the a key role in the successful rise of the solar adoption of solar technology at the local level heating market in Germany. by engaging city governments, as important end users of energy, key intermediaries to other end users within their jurisdiction, and Solar Hot Spots regulatory entities. This initiative requires that It has been observed in several countries the city express a commitment to a city-wide including Austria and the Netherlands,27 that approach to integration of solar energy into city low-level promotion to large groups, especially planning and processes, as well as to large-scale when no adequate follow-up is arranged, can implementation of solar technologies between have disappointing effects in terms of direct now and 2015.29 sales increase, even if they may have had a longer-term effect on the general awareness. Specific sectors of the commercial market can As the consumer becomes more aware of the also be targeted such as the tourism industry, technology and becomes enthusiastic about laundromats, restaurants or car washes. It is its implementation, a system that has follow- easiest to start with one or two sectors. Multi- up with direct contact with installers and family homes are more complicated as experienced distributors needs to be in place. Thus it may be designers and installers are needed. better to focus on a smaller region / municipality and to have intensive communication with Partnerships an established infrastructure of installers Partnerships with community energy and and dealers there, or to choose well-defined environmental organizations that are active market segments, than to have a low level of in education and community organizing can communication in a whole country or province. be an effective method to deliver information and engage a target population. This has been The establishment of “solar hot spots” across the exemplified through the success of the delivery country is one method of focusing promotion. of the Energuide program through the Green A potential idea is to establish a Solar Cities Communities Association and conservation program. One such program that has been programs through local non-government 27 from Soltherm report 28 http://www.greenhouse.gov.au/solarcities 29 http://www.grants.gov/search/search.do?oppId=11174&mode=VIEW
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