solar water heaters in taiwan
TRANSCRIPT
Solar water heaters in Taiwan
K Chang T Lee K Chung
National Cheng Kung University 2500 Section 1 Chung-Cheng South Road Kueijen Tainan Taiwan ROC 711
Received 10 May 2005 accepted 21 July 2005
Available online 15 September 2005
Abstract
Solar water heater has been commercialized during the last two decades in Taiwan The
government initiated the incentive programs during 1986ndash1991 and 2000ndash2004 This created an
economic incentive for the end-users The total area of solar collectors installed was more than one
million square meters The data also show that most of the solar water heaters are mainly used by the
domestic sector for hot water production (about 97) The regional popularization analysis indicates
limited installation of solar water heaters in the northern district In the eastern district and remote
islands the problems of climatic conditions and availability of localized installersdealers are
addressed
q 2005 Elsevier Ltd All rights reserved
Keywords Solar water heater Incentive program
1 Introduction
Energy issues affect every aspect of modern society These issues have been of primary
concern since the second oil crisis and the Gulf War Energy problems are associated with
distribution access and security of supply Particularly for the energy-deficient countries
and remote islandsareas renewable energy appears to be sustainable and a clean source of
energy derived from nature For example renewable energy accounted for 144 of
Turkeyrsquos total primary energy supply in 1999 [1]
There is substantial change in the economic structure and energy consumption pattern
in Taiwan over the past two decades The total energy supply is mainly from imported
fuel The utilization of available renewable energy sources like solar and biomass energy
Renewable Energy 31 (2006) 1299ndash1308
wwwelseviercomlocaterenene
0960-1481$ - see front matter q 2005 Elsevier Ltd All rights reserved
doi101016jrenene200507003
Corresponding author Tel C886 6 2392811x210 fax C886 6 2391915
E-mail address kmchungastrciaalabnckuedutw (K Chung)
K Chang et al Renewable Energy 31 (2006) 1299ndash13081300
is of practical importance for future socio-economic development of the country In this
paper the status concerning use of solar water heaters (SWHs) in Taiwan is presented The
following sections describe the geography of Taiwan energy situation solar energy
potential status and effectiveness of the governmentrsquos incentive program The present
analysis will assist in the assessment of SWH market in Taiwan
2 Geographic profile of Taiwan
Taiwan a leaf-shaped island straddling the Tropic of Cancer is situated between
latitude 22 and 258 North and longitude 120 and 1218 East It is merely 160 km off the
southeastern coast of Mainland China by the Taiwan Straits Positioned midway between
Korea and Japan to the North and Hong Kong and Philippines to the South the island
measures 377 km long and 142 km wide at its widest point The total area is 36006 km2
including Taiwan proper and remote islands (eg Penghu Islands Green Island Orchid
Island Chinman Matsu and Tiaoyutai Islets) The Central Mountain Range slopes gently
to a broad plane in the west In the east the mountains descend precipitously to the Pacific
Physiographically Taiwan has the Central Mountain Range volcanic mountains
foothills tablelands coastal plains and basins About two-thirds of the island is covered
with lush forested mountains [2]
3 Energy situation in Taiwan
Taiwan is a densely populated island that is endowed with limited natural resources
The rapid economic development has created substantial increase in energy consumption
over the past two decades (Table 1) The total energy supply has increased from 315
million kiloliters of oil equivalent (MKLOE) in 1983 to 1212 MKLOE in 2003 at an
average annual growth rate of 63 Furthermore Taiwanrsquos energy mix is highly
dependent on coal and petroleum (Table 2) which account for 834 of the total energy
supply in 2003 LNG and nuclear energy contribute 66 and 8 of energy respectively
The remaining 2 is supplied by hydropower and natural gas The average annual growth
rate of total energy supply is projected to decrease to 21 during the next two decades [3]
As seen in Table 1 the share of indigenous energy supply has decreased from 124 in
1983 to 21 in 2003 Taiwan will face energy security in the near future In addition a
National Energy Conference was convened in 1998 for the purpose of formulating
Table 1
Energy supply
Item 1983 1993 2003 1983 2003
MKLOE MKLOE MKLOE Growth rate
Total 315 100 684 100 1212 100 63
Indigenous 44 124 28 41 26 21 K26
Imported 311 876 656 959 1186 979 69
Table 2
Energy supply by resources
Item 1983 1993 2003 1983 2003
MKLOE MKLOE MKLOE Growth
rate
Coal 47 175 185 270 395 326 97
Petroleum 217 616 363 531 615 508 53
Natural gas 15 42 08 12 08 07 K29
LNG ndash ndash 26 37 80 66 ndash
Hydropower 12 35 17 24 17 14 16
Nuclear 47 133 85 125 97 80 37
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1301
strategies and measures in response to the impact of the United Nations Framework
Convention on Climate Change and seeking a balance among economic development
energy supply and environmental protection in Taiwan [4] For these reasons the
development and use of renewable energy sources and technologies are becoming vital for
the management of energy supply and demand The Bureau of Energy under Ministry of
Economic Affairs (BEMOEA) which aims to formulate and implement the national
energy policy has been positively promoting the research and development of renewable
energy Wind power generation solar photovoltalic energy solar thermal energy
geothermal utilization ocean energy and biomass energy are the major resources The ratio
of renewable energy to total energy supply is projected to increase from 1 in 2003 to 4
in 2020
4 Solar thermal energy
Among various forms of renewable energy solar thermal energy is most widely used in
many countries [5ndash8] Taiwanrsquos climate is subtropical which is ideally located to take
advantage of solar thermal energy technologies The distribution of global solar insolation
in Taiwan is shown in Fig 1 The average daily global solar insolation is about 280
Langley (325 kWhm2) in the north to 400 Langley (464 kWhm2) in the south For the
climatic condition at four representative locations the duration of sunshine per year
(1994ndash2003) is about 2000ndash2500 h in south-western regions (Taichung and Kaohsiung)
and is only about 1000ndash1500 h in north-eastern regions (Taipei and Hualien) (Fig 2) This
corresponds to the cloudy and rainy months (Figs 3 and 4) In Taipei (1977ndash2000) there
are 12ndash16 rainy days per month In Hualien (2003) the cloudiest winter month receives
less than 60 h of sunshine per month whereas in July the figure reaches 320 h [10]
5 Incentive programs for solar water heater
Taiwan began manufacturing SWHs in 1978 However the number of SWHs installed
is quite limited because of high capital cost compared with the conventional ones eg LNG
Year
1994 1996 1998 2000 2002 2004
Dur
atio
n of
shi
ne H
ours
500
1000
1500
2000
2500
3000TaipeiTaichungKaohsiungHualien
1994-2003
Fig 2 Duration of sunshine per year
360
400
320
280
280320
360
400
367
3633
Hengchun
Kaohsung
Tainan
Penghu
Chiayi
Taichung
Hsinchu Taipei
Keelung
Hualian
Lanyu
Fig 1 Distribution of global solar insolation [9]
K Chang et al Renewable Energy 31 (2006) 1299ndash13081302
Month
2 6 10 12
Dur
atio
n of
shi
ne H
ours
0
100
200
300
400TaipeiTaichungKaohsiungHualien
2003
4 8
Fig 3 Duration of sunshine per month 2003
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1303
or natural gas Aiming to develop of indigenous alternative and renewable energy
resources the government initiated a six-year incentive program (1986ndash1991) to
encourage the installation of SWH The industry of SWH expanded very quickly and
reached about 60000 m2 in the area with solar collectors installed per year (about 70
dealersinstallers) which were mainly used for hot water production in the domestic sector
The typical SWH is of thermosyphon type and consists of glazed or unglazed flat-plate
solar collectors The incentive program established not only the standard of application for
renewable energy but also created substantial change in the SWH industry in Taiwan In
addition the quantity and quality of hot water from SWH is important to consumer faith in
SWH This is related to the efficiency optical and thermal properties of the solar collector
Month2 4 6 8 10 12
Rai
ny d
ays
0
10
20
30TaipeiTaichungKaohsiungHualien
1977-2000
Fig 4 Rainy days per month 1997ndash2000
Table 3
Standards of solar collector (1986ndash1991)
Metal type Non-metal type Unglazed type
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
1986 065 120
1987 068 100 050 100 075 25
1988 072 80 060 80 080 22
1989ndash1991 075 70 065 75 085 20
K Chang et al Renewable Energy 31 (2006) 1299ndash13081304
The standard of solar collector within the first period of incentive program (1986ndash1991) is
shown in Table 3 FR(ta) and FRUL are the slope and intercept of collector efficiency
curve respectively More useful energy collected from a collector (Higher FR(ta)) and
lower heat loss (lower FRUL) are required by the end of this incentive program
The installation of SWH slowed down during 1995ndash1999 To further foster the
application of solar thermal energy the government initiated another incentive program
for four and a half years (July 2000ndash2004) following the lsquoMeasure for promoting Solar
Hot-Water Systemrsquo in 2000 According to the Measure the Energy Research Laboratories
of Industrial Technology and Research Institute (ERLITRI) conducted the performance
tests (same standard in 1991) The National Cheng Kung University Research and
Development Foundation (NCKURDF) had been authorized to organize an operation unit
to carry the tasks which include filing and auditing of applications allocation of funding
and appealing process
During 2000ndash2004 the government provides financial incentive to the end-users
according to the installed area (Ac) and the type of solar collectors which include glazed or
unglazed flat-plate type and vacuum-tube type To encourage the installation of SWH in
remote islands the amount of subsidy is doubled In addition the proper design the quality
of SWH installation and after-sale service can radically affect the reliable operation of
SWH To be eligible for this financial incentive program all qualified products
installersdealers and manufacturers must possess a certification or a license issued by
the Bureau of Energy Between 2000 and 2004 there were 241 qualified products 187
qualified installersdealers and 26 qualified manufacturers It is also noted that 96 of the
qualified installersdealers are located in west Taiwan Out of the 241 qualified products
148 products were assembled by the installers themselves The metallic (stainless or
copper) flat-plate solar collectors accounted for 78 of SWHs and the remaining 22
were the vacuum-tube solar collectors Almost all the metallic flat-plate solar collectors
were produced domestically while some of the vacuum-tube absorbers were imported
Most of the SWHs are permanently connected to an auxiliary electric heater
6 Status of incentive program (2000ndash2004)
There are two major types of solar collectors in Taiwan (Table 4) The flat-plate solar
collectors with metal absorbers and glass cover are widely used to transform solar energy
Table 4
Type of solar collector (SWH units)
2001 2002 2003 2004
Flat plate 12039 13310 15413 19910
Vacuum 650 1383 1135 1752
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1305
into heat They represent 906ndash949 of the market share in 2001ndash2004 The remaining
51ndash91 comes from the vacuum-tube solar collectors Moreover 972ndash974 of
installed solar collectors are used for the production of hot water for the homeowners
(Table 5) in which the area of solar collectors installed Ac is less than 10 m2 (residential
system Table 6) Very few commercial systems (over 100 m2 such as hotel and hospital)
had SWHs installed and this is the section which requires further promotion The
remaining SWHs are installed in dormitory swimming pools and factories
The number of SWHs installed in each quarter from July 2000 to December 2004 are
shown in Fig 5 It should be noted that MOEA issued the lsquoGuidelines for Promoting Solar
Hot-Water Systemrsquo to substitute the original Measure in early 2003 There was temporary
suspension for the application of financial incentive The installation of SWH dropped in
the first quarter (2695 SWHs installed) followed by a significant increase in the second
quarter (4768 SWHs installed) Overall the installation rates have gradually increased by
year According to the survey by the ERLITRI 965 of SWHs installed in Taiwan filed
applications from this financial incentive program
The statistics of area of solar collectors installed in four major districts and remote
islands in Taiwan are shown in Fig 6 It can be seen that installation of SWHs is mainly in
the south-western districts Fig 6(a) The southern district in Taiwan has the most
favorable sunlight conditions Residential and commercial sectors installed SWHs in view
of the longer annual sunshine duration and higher average solar intensity In west Taiwan
the high installation rate of SWHs is mainly due to the re-construction project after the 921
severe earthquake in 1999 SWH has become a standard feature for a lot of newly built
Table 5
Application of SWHs
2001 2002 2003 2004
Homeowner 12636 14644 16479 21569
Dormitory 50 45 61 83
Other 3 4 8 10
Table 6
Area of solar collector installed per SWH
Ac (m2) 2001 2002 2003 2004
Below 10 12363 14310 16087 21220
11ndash100 318 377 457 433
Above 100 8 6 4 9
1 3
1000
3000
5000
Quarter
Inst
alle
d un
its o
f SW
H
2000 (6659)2001 (13155)2002 (14693)2003 (16548)2004 (19434)
2 4
Fig 5 Installed units of SWHs
Inst
alle
d A
rea
m2
10000
20000
30000
40000
50000
60000NorthWestSouth
Year
2000 2001 2002 2003 2004 20050
1000
2000
Inst
alle
d A
rea
m2
EastRemote island
(a)
(b)
Fig 6 Regional installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081306
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1307
homes and this will be elaborated later In northern Taiwan the area of solar collectors
installed is considerably lower than that of the western and southern districts but goes up
as a result of this financial incentive program In the eastern district and remote islands
Fig 6b there are only few SWHs installed It can be attributed to the typhoon effect and
limited local qualified installersdealers
7 Effectiveness of incentive programs
In 1980 s the USA initiated state government incentives for solar installation
Lancaster and Berndt [11] indicated that property tax exemptions do not appear to be
effective in promoting alternative energy development The data on sale tax exemptions
and grant or loan programs are inconclusive However the application of solar energy in
Germany showed 30 annual growth from 1995 to 2001 As a result the incentive
program created substantial impact on the solar energy industry The area with solar
collector installed reached 900000 m2 in 2001 In Taiwan the incentive program is also
obviously critical for the promotion of SWH (Fig 7) According to the annual data of
ERLITRI since 1987 the area of solar collectors installed increased from 5000 to
60000 m2 per year during the first period of incentive program (1986ndash1991) The second
period (2000ndash2004) also shows a strong impact on the installation of SWHs The area of
solar collectors installed was 56500 m2 in 1999 and increased about 29 (25907 m2
with financial incentive out of 72800 m2 total installed area) in 2000 The annual growth
of SWH installation was 37 in 2001 and 2002 and increased up to 95 in 2003
Currently the total area of solar collectors installed in Taiwan is more than one million
square meters
1975 1980 1985 1990 1995 2000 20050
20
40
60
80
100
120
Year
Inst
alle
d ar
ea o
f so
lar
colle
ctor
Unit 1000 m2
Fig 7 Total installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9
K Chang et al Renewable Energy 31 (2006) 1299ndash13081300
is of practical importance for future socio-economic development of the country In this
paper the status concerning use of solar water heaters (SWHs) in Taiwan is presented The
following sections describe the geography of Taiwan energy situation solar energy
potential status and effectiveness of the governmentrsquos incentive program The present
analysis will assist in the assessment of SWH market in Taiwan
2 Geographic profile of Taiwan
Taiwan a leaf-shaped island straddling the Tropic of Cancer is situated between
latitude 22 and 258 North and longitude 120 and 1218 East It is merely 160 km off the
southeastern coast of Mainland China by the Taiwan Straits Positioned midway between
Korea and Japan to the North and Hong Kong and Philippines to the South the island
measures 377 km long and 142 km wide at its widest point The total area is 36006 km2
including Taiwan proper and remote islands (eg Penghu Islands Green Island Orchid
Island Chinman Matsu and Tiaoyutai Islets) The Central Mountain Range slopes gently
to a broad plane in the west In the east the mountains descend precipitously to the Pacific
Physiographically Taiwan has the Central Mountain Range volcanic mountains
foothills tablelands coastal plains and basins About two-thirds of the island is covered
with lush forested mountains [2]
3 Energy situation in Taiwan
Taiwan is a densely populated island that is endowed with limited natural resources
The rapid economic development has created substantial increase in energy consumption
over the past two decades (Table 1) The total energy supply has increased from 315
million kiloliters of oil equivalent (MKLOE) in 1983 to 1212 MKLOE in 2003 at an
average annual growth rate of 63 Furthermore Taiwanrsquos energy mix is highly
dependent on coal and petroleum (Table 2) which account for 834 of the total energy
supply in 2003 LNG and nuclear energy contribute 66 and 8 of energy respectively
The remaining 2 is supplied by hydropower and natural gas The average annual growth
rate of total energy supply is projected to decrease to 21 during the next two decades [3]
As seen in Table 1 the share of indigenous energy supply has decreased from 124 in
1983 to 21 in 2003 Taiwan will face energy security in the near future In addition a
National Energy Conference was convened in 1998 for the purpose of formulating
Table 1
Energy supply
Item 1983 1993 2003 1983 2003
MKLOE MKLOE MKLOE Growth rate
Total 315 100 684 100 1212 100 63
Indigenous 44 124 28 41 26 21 K26
Imported 311 876 656 959 1186 979 69
Table 2
Energy supply by resources
Item 1983 1993 2003 1983 2003
MKLOE MKLOE MKLOE Growth
rate
Coal 47 175 185 270 395 326 97
Petroleum 217 616 363 531 615 508 53
Natural gas 15 42 08 12 08 07 K29
LNG ndash ndash 26 37 80 66 ndash
Hydropower 12 35 17 24 17 14 16
Nuclear 47 133 85 125 97 80 37
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1301
strategies and measures in response to the impact of the United Nations Framework
Convention on Climate Change and seeking a balance among economic development
energy supply and environmental protection in Taiwan [4] For these reasons the
development and use of renewable energy sources and technologies are becoming vital for
the management of energy supply and demand The Bureau of Energy under Ministry of
Economic Affairs (BEMOEA) which aims to formulate and implement the national
energy policy has been positively promoting the research and development of renewable
energy Wind power generation solar photovoltalic energy solar thermal energy
geothermal utilization ocean energy and biomass energy are the major resources The ratio
of renewable energy to total energy supply is projected to increase from 1 in 2003 to 4
in 2020
4 Solar thermal energy
Among various forms of renewable energy solar thermal energy is most widely used in
many countries [5ndash8] Taiwanrsquos climate is subtropical which is ideally located to take
advantage of solar thermal energy technologies The distribution of global solar insolation
in Taiwan is shown in Fig 1 The average daily global solar insolation is about 280
Langley (325 kWhm2) in the north to 400 Langley (464 kWhm2) in the south For the
climatic condition at four representative locations the duration of sunshine per year
(1994ndash2003) is about 2000ndash2500 h in south-western regions (Taichung and Kaohsiung)
and is only about 1000ndash1500 h in north-eastern regions (Taipei and Hualien) (Fig 2) This
corresponds to the cloudy and rainy months (Figs 3 and 4) In Taipei (1977ndash2000) there
are 12ndash16 rainy days per month In Hualien (2003) the cloudiest winter month receives
less than 60 h of sunshine per month whereas in July the figure reaches 320 h [10]
5 Incentive programs for solar water heater
Taiwan began manufacturing SWHs in 1978 However the number of SWHs installed
is quite limited because of high capital cost compared with the conventional ones eg LNG
Year
1994 1996 1998 2000 2002 2004
Dur
atio
n of
shi
ne H
ours
500
1000
1500
2000
2500
3000TaipeiTaichungKaohsiungHualien
1994-2003
Fig 2 Duration of sunshine per year
360
400
320
280
280320
360
400
367
3633
Hengchun
Kaohsung
Tainan
Penghu
Chiayi
Taichung
Hsinchu Taipei
Keelung
Hualian
Lanyu
Fig 1 Distribution of global solar insolation [9]
K Chang et al Renewable Energy 31 (2006) 1299ndash13081302
Month
2 6 10 12
Dur
atio
n of
shi
ne H
ours
0
100
200
300
400TaipeiTaichungKaohsiungHualien
2003
4 8
Fig 3 Duration of sunshine per month 2003
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1303
or natural gas Aiming to develop of indigenous alternative and renewable energy
resources the government initiated a six-year incentive program (1986ndash1991) to
encourage the installation of SWH The industry of SWH expanded very quickly and
reached about 60000 m2 in the area with solar collectors installed per year (about 70
dealersinstallers) which were mainly used for hot water production in the domestic sector
The typical SWH is of thermosyphon type and consists of glazed or unglazed flat-plate
solar collectors The incentive program established not only the standard of application for
renewable energy but also created substantial change in the SWH industry in Taiwan In
addition the quantity and quality of hot water from SWH is important to consumer faith in
SWH This is related to the efficiency optical and thermal properties of the solar collector
Month2 4 6 8 10 12
Rai
ny d
ays
0
10
20
30TaipeiTaichungKaohsiungHualien
1977-2000
Fig 4 Rainy days per month 1997ndash2000
Table 3
Standards of solar collector (1986ndash1991)
Metal type Non-metal type Unglazed type
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
1986 065 120
1987 068 100 050 100 075 25
1988 072 80 060 80 080 22
1989ndash1991 075 70 065 75 085 20
K Chang et al Renewable Energy 31 (2006) 1299ndash13081304
The standard of solar collector within the first period of incentive program (1986ndash1991) is
shown in Table 3 FR(ta) and FRUL are the slope and intercept of collector efficiency
curve respectively More useful energy collected from a collector (Higher FR(ta)) and
lower heat loss (lower FRUL) are required by the end of this incentive program
The installation of SWH slowed down during 1995ndash1999 To further foster the
application of solar thermal energy the government initiated another incentive program
for four and a half years (July 2000ndash2004) following the lsquoMeasure for promoting Solar
Hot-Water Systemrsquo in 2000 According to the Measure the Energy Research Laboratories
of Industrial Technology and Research Institute (ERLITRI) conducted the performance
tests (same standard in 1991) The National Cheng Kung University Research and
Development Foundation (NCKURDF) had been authorized to organize an operation unit
to carry the tasks which include filing and auditing of applications allocation of funding
and appealing process
During 2000ndash2004 the government provides financial incentive to the end-users
according to the installed area (Ac) and the type of solar collectors which include glazed or
unglazed flat-plate type and vacuum-tube type To encourage the installation of SWH in
remote islands the amount of subsidy is doubled In addition the proper design the quality
of SWH installation and after-sale service can radically affect the reliable operation of
SWH To be eligible for this financial incentive program all qualified products
installersdealers and manufacturers must possess a certification or a license issued by
the Bureau of Energy Between 2000 and 2004 there were 241 qualified products 187
qualified installersdealers and 26 qualified manufacturers It is also noted that 96 of the
qualified installersdealers are located in west Taiwan Out of the 241 qualified products
148 products were assembled by the installers themselves The metallic (stainless or
copper) flat-plate solar collectors accounted for 78 of SWHs and the remaining 22
were the vacuum-tube solar collectors Almost all the metallic flat-plate solar collectors
were produced domestically while some of the vacuum-tube absorbers were imported
Most of the SWHs are permanently connected to an auxiliary electric heater
6 Status of incentive program (2000ndash2004)
There are two major types of solar collectors in Taiwan (Table 4) The flat-plate solar
collectors with metal absorbers and glass cover are widely used to transform solar energy
Table 4
Type of solar collector (SWH units)
2001 2002 2003 2004
Flat plate 12039 13310 15413 19910
Vacuum 650 1383 1135 1752
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1305
into heat They represent 906ndash949 of the market share in 2001ndash2004 The remaining
51ndash91 comes from the vacuum-tube solar collectors Moreover 972ndash974 of
installed solar collectors are used for the production of hot water for the homeowners
(Table 5) in which the area of solar collectors installed Ac is less than 10 m2 (residential
system Table 6) Very few commercial systems (over 100 m2 such as hotel and hospital)
had SWHs installed and this is the section which requires further promotion The
remaining SWHs are installed in dormitory swimming pools and factories
The number of SWHs installed in each quarter from July 2000 to December 2004 are
shown in Fig 5 It should be noted that MOEA issued the lsquoGuidelines for Promoting Solar
Hot-Water Systemrsquo to substitute the original Measure in early 2003 There was temporary
suspension for the application of financial incentive The installation of SWH dropped in
the first quarter (2695 SWHs installed) followed by a significant increase in the second
quarter (4768 SWHs installed) Overall the installation rates have gradually increased by
year According to the survey by the ERLITRI 965 of SWHs installed in Taiwan filed
applications from this financial incentive program
The statistics of area of solar collectors installed in four major districts and remote
islands in Taiwan are shown in Fig 6 It can be seen that installation of SWHs is mainly in
the south-western districts Fig 6(a) The southern district in Taiwan has the most
favorable sunlight conditions Residential and commercial sectors installed SWHs in view
of the longer annual sunshine duration and higher average solar intensity In west Taiwan
the high installation rate of SWHs is mainly due to the re-construction project after the 921
severe earthquake in 1999 SWH has become a standard feature for a lot of newly built
Table 5
Application of SWHs
2001 2002 2003 2004
Homeowner 12636 14644 16479 21569
Dormitory 50 45 61 83
Other 3 4 8 10
Table 6
Area of solar collector installed per SWH
Ac (m2) 2001 2002 2003 2004
Below 10 12363 14310 16087 21220
11ndash100 318 377 457 433
Above 100 8 6 4 9
1 3
1000
3000
5000
Quarter
Inst
alle
d un
its o
f SW
H
2000 (6659)2001 (13155)2002 (14693)2003 (16548)2004 (19434)
2 4
Fig 5 Installed units of SWHs
Inst
alle
d A
rea
m2
10000
20000
30000
40000
50000
60000NorthWestSouth
Year
2000 2001 2002 2003 2004 20050
1000
2000
Inst
alle
d A
rea
m2
EastRemote island
(a)
(b)
Fig 6 Regional installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081306
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1307
homes and this will be elaborated later In northern Taiwan the area of solar collectors
installed is considerably lower than that of the western and southern districts but goes up
as a result of this financial incentive program In the eastern district and remote islands
Fig 6b there are only few SWHs installed It can be attributed to the typhoon effect and
limited local qualified installersdealers
7 Effectiveness of incentive programs
In 1980 s the USA initiated state government incentives for solar installation
Lancaster and Berndt [11] indicated that property tax exemptions do not appear to be
effective in promoting alternative energy development The data on sale tax exemptions
and grant or loan programs are inconclusive However the application of solar energy in
Germany showed 30 annual growth from 1995 to 2001 As a result the incentive
program created substantial impact on the solar energy industry The area with solar
collector installed reached 900000 m2 in 2001 In Taiwan the incentive program is also
obviously critical for the promotion of SWH (Fig 7) According to the annual data of
ERLITRI since 1987 the area of solar collectors installed increased from 5000 to
60000 m2 per year during the first period of incentive program (1986ndash1991) The second
period (2000ndash2004) also shows a strong impact on the installation of SWHs The area of
solar collectors installed was 56500 m2 in 1999 and increased about 29 (25907 m2
with financial incentive out of 72800 m2 total installed area) in 2000 The annual growth
of SWH installation was 37 in 2001 and 2002 and increased up to 95 in 2003
Currently the total area of solar collectors installed in Taiwan is more than one million
square meters
1975 1980 1985 1990 1995 2000 20050
20
40
60
80
100
120
Year
Inst
alle
d ar
ea o
f so
lar
colle
ctor
Unit 1000 m2
Fig 7 Total installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9
Table 2
Energy supply by resources
Item 1983 1993 2003 1983 2003
MKLOE MKLOE MKLOE Growth
rate
Coal 47 175 185 270 395 326 97
Petroleum 217 616 363 531 615 508 53
Natural gas 15 42 08 12 08 07 K29
LNG ndash ndash 26 37 80 66 ndash
Hydropower 12 35 17 24 17 14 16
Nuclear 47 133 85 125 97 80 37
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1301
strategies and measures in response to the impact of the United Nations Framework
Convention on Climate Change and seeking a balance among economic development
energy supply and environmental protection in Taiwan [4] For these reasons the
development and use of renewable energy sources and technologies are becoming vital for
the management of energy supply and demand The Bureau of Energy under Ministry of
Economic Affairs (BEMOEA) which aims to formulate and implement the national
energy policy has been positively promoting the research and development of renewable
energy Wind power generation solar photovoltalic energy solar thermal energy
geothermal utilization ocean energy and biomass energy are the major resources The ratio
of renewable energy to total energy supply is projected to increase from 1 in 2003 to 4
in 2020
4 Solar thermal energy
Among various forms of renewable energy solar thermal energy is most widely used in
many countries [5ndash8] Taiwanrsquos climate is subtropical which is ideally located to take
advantage of solar thermal energy technologies The distribution of global solar insolation
in Taiwan is shown in Fig 1 The average daily global solar insolation is about 280
Langley (325 kWhm2) in the north to 400 Langley (464 kWhm2) in the south For the
climatic condition at four representative locations the duration of sunshine per year
(1994ndash2003) is about 2000ndash2500 h in south-western regions (Taichung and Kaohsiung)
and is only about 1000ndash1500 h in north-eastern regions (Taipei and Hualien) (Fig 2) This
corresponds to the cloudy and rainy months (Figs 3 and 4) In Taipei (1977ndash2000) there
are 12ndash16 rainy days per month In Hualien (2003) the cloudiest winter month receives
less than 60 h of sunshine per month whereas in July the figure reaches 320 h [10]
5 Incentive programs for solar water heater
Taiwan began manufacturing SWHs in 1978 However the number of SWHs installed
is quite limited because of high capital cost compared with the conventional ones eg LNG
Year
1994 1996 1998 2000 2002 2004
Dur
atio
n of
shi
ne H
ours
500
1000
1500
2000
2500
3000TaipeiTaichungKaohsiungHualien
1994-2003
Fig 2 Duration of sunshine per year
360
400
320
280
280320
360
400
367
3633
Hengchun
Kaohsung
Tainan
Penghu
Chiayi
Taichung
Hsinchu Taipei
Keelung
Hualian
Lanyu
Fig 1 Distribution of global solar insolation [9]
K Chang et al Renewable Energy 31 (2006) 1299ndash13081302
Month
2 6 10 12
Dur
atio
n of
shi
ne H
ours
0
100
200
300
400TaipeiTaichungKaohsiungHualien
2003
4 8
Fig 3 Duration of sunshine per month 2003
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1303
or natural gas Aiming to develop of indigenous alternative and renewable energy
resources the government initiated a six-year incentive program (1986ndash1991) to
encourage the installation of SWH The industry of SWH expanded very quickly and
reached about 60000 m2 in the area with solar collectors installed per year (about 70
dealersinstallers) which were mainly used for hot water production in the domestic sector
The typical SWH is of thermosyphon type and consists of glazed or unglazed flat-plate
solar collectors The incentive program established not only the standard of application for
renewable energy but also created substantial change in the SWH industry in Taiwan In
addition the quantity and quality of hot water from SWH is important to consumer faith in
SWH This is related to the efficiency optical and thermal properties of the solar collector
Month2 4 6 8 10 12
Rai
ny d
ays
0
10
20
30TaipeiTaichungKaohsiungHualien
1977-2000
Fig 4 Rainy days per month 1997ndash2000
Table 3
Standards of solar collector (1986ndash1991)
Metal type Non-metal type Unglazed type
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
1986 065 120
1987 068 100 050 100 075 25
1988 072 80 060 80 080 22
1989ndash1991 075 70 065 75 085 20
K Chang et al Renewable Energy 31 (2006) 1299ndash13081304
The standard of solar collector within the first period of incentive program (1986ndash1991) is
shown in Table 3 FR(ta) and FRUL are the slope and intercept of collector efficiency
curve respectively More useful energy collected from a collector (Higher FR(ta)) and
lower heat loss (lower FRUL) are required by the end of this incentive program
The installation of SWH slowed down during 1995ndash1999 To further foster the
application of solar thermal energy the government initiated another incentive program
for four and a half years (July 2000ndash2004) following the lsquoMeasure for promoting Solar
Hot-Water Systemrsquo in 2000 According to the Measure the Energy Research Laboratories
of Industrial Technology and Research Institute (ERLITRI) conducted the performance
tests (same standard in 1991) The National Cheng Kung University Research and
Development Foundation (NCKURDF) had been authorized to organize an operation unit
to carry the tasks which include filing and auditing of applications allocation of funding
and appealing process
During 2000ndash2004 the government provides financial incentive to the end-users
according to the installed area (Ac) and the type of solar collectors which include glazed or
unglazed flat-plate type and vacuum-tube type To encourage the installation of SWH in
remote islands the amount of subsidy is doubled In addition the proper design the quality
of SWH installation and after-sale service can radically affect the reliable operation of
SWH To be eligible for this financial incentive program all qualified products
installersdealers and manufacturers must possess a certification or a license issued by
the Bureau of Energy Between 2000 and 2004 there were 241 qualified products 187
qualified installersdealers and 26 qualified manufacturers It is also noted that 96 of the
qualified installersdealers are located in west Taiwan Out of the 241 qualified products
148 products were assembled by the installers themselves The metallic (stainless or
copper) flat-plate solar collectors accounted for 78 of SWHs and the remaining 22
were the vacuum-tube solar collectors Almost all the metallic flat-plate solar collectors
were produced domestically while some of the vacuum-tube absorbers were imported
Most of the SWHs are permanently connected to an auxiliary electric heater
6 Status of incentive program (2000ndash2004)
There are two major types of solar collectors in Taiwan (Table 4) The flat-plate solar
collectors with metal absorbers and glass cover are widely used to transform solar energy
Table 4
Type of solar collector (SWH units)
2001 2002 2003 2004
Flat plate 12039 13310 15413 19910
Vacuum 650 1383 1135 1752
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1305
into heat They represent 906ndash949 of the market share in 2001ndash2004 The remaining
51ndash91 comes from the vacuum-tube solar collectors Moreover 972ndash974 of
installed solar collectors are used for the production of hot water for the homeowners
(Table 5) in which the area of solar collectors installed Ac is less than 10 m2 (residential
system Table 6) Very few commercial systems (over 100 m2 such as hotel and hospital)
had SWHs installed and this is the section which requires further promotion The
remaining SWHs are installed in dormitory swimming pools and factories
The number of SWHs installed in each quarter from July 2000 to December 2004 are
shown in Fig 5 It should be noted that MOEA issued the lsquoGuidelines for Promoting Solar
Hot-Water Systemrsquo to substitute the original Measure in early 2003 There was temporary
suspension for the application of financial incentive The installation of SWH dropped in
the first quarter (2695 SWHs installed) followed by a significant increase in the second
quarter (4768 SWHs installed) Overall the installation rates have gradually increased by
year According to the survey by the ERLITRI 965 of SWHs installed in Taiwan filed
applications from this financial incentive program
The statistics of area of solar collectors installed in four major districts and remote
islands in Taiwan are shown in Fig 6 It can be seen that installation of SWHs is mainly in
the south-western districts Fig 6(a) The southern district in Taiwan has the most
favorable sunlight conditions Residential and commercial sectors installed SWHs in view
of the longer annual sunshine duration and higher average solar intensity In west Taiwan
the high installation rate of SWHs is mainly due to the re-construction project after the 921
severe earthquake in 1999 SWH has become a standard feature for a lot of newly built
Table 5
Application of SWHs
2001 2002 2003 2004
Homeowner 12636 14644 16479 21569
Dormitory 50 45 61 83
Other 3 4 8 10
Table 6
Area of solar collector installed per SWH
Ac (m2) 2001 2002 2003 2004
Below 10 12363 14310 16087 21220
11ndash100 318 377 457 433
Above 100 8 6 4 9
1 3
1000
3000
5000
Quarter
Inst
alle
d un
its o
f SW
H
2000 (6659)2001 (13155)2002 (14693)2003 (16548)2004 (19434)
2 4
Fig 5 Installed units of SWHs
Inst
alle
d A
rea
m2
10000
20000
30000
40000
50000
60000NorthWestSouth
Year
2000 2001 2002 2003 2004 20050
1000
2000
Inst
alle
d A
rea
m2
EastRemote island
(a)
(b)
Fig 6 Regional installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081306
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1307
homes and this will be elaborated later In northern Taiwan the area of solar collectors
installed is considerably lower than that of the western and southern districts but goes up
as a result of this financial incentive program In the eastern district and remote islands
Fig 6b there are only few SWHs installed It can be attributed to the typhoon effect and
limited local qualified installersdealers
7 Effectiveness of incentive programs
In 1980 s the USA initiated state government incentives for solar installation
Lancaster and Berndt [11] indicated that property tax exemptions do not appear to be
effective in promoting alternative energy development The data on sale tax exemptions
and grant or loan programs are inconclusive However the application of solar energy in
Germany showed 30 annual growth from 1995 to 2001 As a result the incentive
program created substantial impact on the solar energy industry The area with solar
collector installed reached 900000 m2 in 2001 In Taiwan the incentive program is also
obviously critical for the promotion of SWH (Fig 7) According to the annual data of
ERLITRI since 1987 the area of solar collectors installed increased from 5000 to
60000 m2 per year during the first period of incentive program (1986ndash1991) The second
period (2000ndash2004) also shows a strong impact on the installation of SWHs The area of
solar collectors installed was 56500 m2 in 1999 and increased about 29 (25907 m2
with financial incentive out of 72800 m2 total installed area) in 2000 The annual growth
of SWH installation was 37 in 2001 and 2002 and increased up to 95 in 2003
Currently the total area of solar collectors installed in Taiwan is more than one million
square meters
1975 1980 1985 1990 1995 2000 20050
20
40
60
80
100
120
Year
Inst
alle
d ar
ea o
f so
lar
colle
ctor
Unit 1000 m2
Fig 7 Total installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9
Year
1994 1996 1998 2000 2002 2004
Dur
atio
n of
shi
ne H
ours
500
1000
1500
2000
2500
3000TaipeiTaichungKaohsiungHualien
1994-2003
Fig 2 Duration of sunshine per year
360
400
320
280
280320
360
400
367
3633
Hengchun
Kaohsung
Tainan
Penghu
Chiayi
Taichung
Hsinchu Taipei
Keelung
Hualian
Lanyu
Fig 1 Distribution of global solar insolation [9]
K Chang et al Renewable Energy 31 (2006) 1299ndash13081302
Month
2 6 10 12
Dur
atio
n of
shi
ne H
ours
0
100
200
300
400TaipeiTaichungKaohsiungHualien
2003
4 8
Fig 3 Duration of sunshine per month 2003
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1303
or natural gas Aiming to develop of indigenous alternative and renewable energy
resources the government initiated a six-year incentive program (1986ndash1991) to
encourage the installation of SWH The industry of SWH expanded very quickly and
reached about 60000 m2 in the area with solar collectors installed per year (about 70
dealersinstallers) which were mainly used for hot water production in the domestic sector
The typical SWH is of thermosyphon type and consists of glazed or unglazed flat-plate
solar collectors The incentive program established not only the standard of application for
renewable energy but also created substantial change in the SWH industry in Taiwan In
addition the quantity and quality of hot water from SWH is important to consumer faith in
SWH This is related to the efficiency optical and thermal properties of the solar collector
Month2 4 6 8 10 12
Rai
ny d
ays
0
10
20
30TaipeiTaichungKaohsiungHualien
1977-2000
Fig 4 Rainy days per month 1997ndash2000
Table 3
Standards of solar collector (1986ndash1991)
Metal type Non-metal type Unglazed type
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
1986 065 120
1987 068 100 050 100 075 25
1988 072 80 060 80 080 22
1989ndash1991 075 70 065 75 085 20
K Chang et al Renewable Energy 31 (2006) 1299ndash13081304
The standard of solar collector within the first period of incentive program (1986ndash1991) is
shown in Table 3 FR(ta) and FRUL are the slope and intercept of collector efficiency
curve respectively More useful energy collected from a collector (Higher FR(ta)) and
lower heat loss (lower FRUL) are required by the end of this incentive program
The installation of SWH slowed down during 1995ndash1999 To further foster the
application of solar thermal energy the government initiated another incentive program
for four and a half years (July 2000ndash2004) following the lsquoMeasure for promoting Solar
Hot-Water Systemrsquo in 2000 According to the Measure the Energy Research Laboratories
of Industrial Technology and Research Institute (ERLITRI) conducted the performance
tests (same standard in 1991) The National Cheng Kung University Research and
Development Foundation (NCKURDF) had been authorized to organize an operation unit
to carry the tasks which include filing and auditing of applications allocation of funding
and appealing process
During 2000ndash2004 the government provides financial incentive to the end-users
according to the installed area (Ac) and the type of solar collectors which include glazed or
unglazed flat-plate type and vacuum-tube type To encourage the installation of SWH in
remote islands the amount of subsidy is doubled In addition the proper design the quality
of SWH installation and after-sale service can radically affect the reliable operation of
SWH To be eligible for this financial incentive program all qualified products
installersdealers and manufacturers must possess a certification or a license issued by
the Bureau of Energy Between 2000 and 2004 there were 241 qualified products 187
qualified installersdealers and 26 qualified manufacturers It is also noted that 96 of the
qualified installersdealers are located in west Taiwan Out of the 241 qualified products
148 products were assembled by the installers themselves The metallic (stainless or
copper) flat-plate solar collectors accounted for 78 of SWHs and the remaining 22
were the vacuum-tube solar collectors Almost all the metallic flat-plate solar collectors
were produced domestically while some of the vacuum-tube absorbers were imported
Most of the SWHs are permanently connected to an auxiliary electric heater
6 Status of incentive program (2000ndash2004)
There are two major types of solar collectors in Taiwan (Table 4) The flat-plate solar
collectors with metal absorbers and glass cover are widely used to transform solar energy
Table 4
Type of solar collector (SWH units)
2001 2002 2003 2004
Flat plate 12039 13310 15413 19910
Vacuum 650 1383 1135 1752
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1305
into heat They represent 906ndash949 of the market share in 2001ndash2004 The remaining
51ndash91 comes from the vacuum-tube solar collectors Moreover 972ndash974 of
installed solar collectors are used for the production of hot water for the homeowners
(Table 5) in which the area of solar collectors installed Ac is less than 10 m2 (residential
system Table 6) Very few commercial systems (over 100 m2 such as hotel and hospital)
had SWHs installed and this is the section which requires further promotion The
remaining SWHs are installed in dormitory swimming pools and factories
The number of SWHs installed in each quarter from July 2000 to December 2004 are
shown in Fig 5 It should be noted that MOEA issued the lsquoGuidelines for Promoting Solar
Hot-Water Systemrsquo to substitute the original Measure in early 2003 There was temporary
suspension for the application of financial incentive The installation of SWH dropped in
the first quarter (2695 SWHs installed) followed by a significant increase in the second
quarter (4768 SWHs installed) Overall the installation rates have gradually increased by
year According to the survey by the ERLITRI 965 of SWHs installed in Taiwan filed
applications from this financial incentive program
The statistics of area of solar collectors installed in four major districts and remote
islands in Taiwan are shown in Fig 6 It can be seen that installation of SWHs is mainly in
the south-western districts Fig 6(a) The southern district in Taiwan has the most
favorable sunlight conditions Residential and commercial sectors installed SWHs in view
of the longer annual sunshine duration and higher average solar intensity In west Taiwan
the high installation rate of SWHs is mainly due to the re-construction project after the 921
severe earthquake in 1999 SWH has become a standard feature for a lot of newly built
Table 5
Application of SWHs
2001 2002 2003 2004
Homeowner 12636 14644 16479 21569
Dormitory 50 45 61 83
Other 3 4 8 10
Table 6
Area of solar collector installed per SWH
Ac (m2) 2001 2002 2003 2004
Below 10 12363 14310 16087 21220
11ndash100 318 377 457 433
Above 100 8 6 4 9
1 3
1000
3000
5000
Quarter
Inst
alle
d un
its o
f SW
H
2000 (6659)2001 (13155)2002 (14693)2003 (16548)2004 (19434)
2 4
Fig 5 Installed units of SWHs
Inst
alle
d A
rea
m2
10000
20000
30000
40000
50000
60000NorthWestSouth
Year
2000 2001 2002 2003 2004 20050
1000
2000
Inst
alle
d A
rea
m2
EastRemote island
(a)
(b)
Fig 6 Regional installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081306
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1307
homes and this will be elaborated later In northern Taiwan the area of solar collectors
installed is considerably lower than that of the western and southern districts but goes up
as a result of this financial incentive program In the eastern district and remote islands
Fig 6b there are only few SWHs installed It can be attributed to the typhoon effect and
limited local qualified installersdealers
7 Effectiveness of incentive programs
In 1980 s the USA initiated state government incentives for solar installation
Lancaster and Berndt [11] indicated that property tax exemptions do not appear to be
effective in promoting alternative energy development The data on sale tax exemptions
and grant or loan programs are inconclusive However the application of solar energy in
Germany showed 30 annual growth from 1995 to 2001 As a result the incentive
program created substantial impact on the solar energy industry The area with solar
collector installed reached 900000 m2 in 2001 In Taiwan the incentive program is also
obviously critical for the promotion of SWH (Fig 7) According to the annual data of
ERLITRI since 1987 the area of solar collectors installed increased from 5000 to
60000 m2 per year during the first period of incentive program (1986ndash1991) The second
period (2000ndash2004) also shows a strong impact on the installation of SWHs The area of
solar collectors installed was 56500 m2 in 1999 and increased about 29 (25907 m2
with financial incentive out of 72800 m2 total installed area) in 2000 The annual growth
of SWH installation was 37 in 2001 and 2002 and increased up to 95 in 2003
Currently the total area of solar collectors installed in Taiwan is more than one million
square meters
1975 1980 1985 1990 1995 2000 20050
20
40
60
80
100
120
Year
Inst
alle
d ar
ea o
f so
lar
colle
ctor
Unit 1000 m2
Fig 7 Total installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9
Month
2 6 10 12
Dur
atio
n of
shi
ne H
ours
0
100
200
300
400TaipeiTaichungKaohsiungHualien
2003
4 8
Fig 3 Duration of sunshine per month 2003
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1303
or natural gas Aiming to develop of indigenous alternative and renewable energy
resources the government initiated a six-year incentive program (1986ndash1991) to
encourage the installation of SWH The industry of SWH expanded very quickly and
reached about 60000 m2 in the area with solar collectors installed per year (about 70
dealersinstallers) which were mainly used for hot water production in the domestic sector
The typical SWH is of thermosyphon type and consists of glazed or unglazed flat-plate
solar collectors The incentive program established not only the standard of application for
renewable energy but also created substantial change in the SWH industry in Taiwan In
addition the quantity and quality of hot water from SWH is important to consumer faith in
SWH This is related to the efficiency optical and thermal properties of the solar collector
Month2 4 6 8 10 12
Rai
ny d
ays
0
10
20
30TaipeiTaichungKaohsiungHualien
1977-2000
Fig 4 Rainy days per month 1997ndash2000
Table 3
Standards of solar collector (1986ndash1991)
Metal type Non-metal type Unglazed type
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
1986 065 120
1987 068 100 050 100 075 25
1988 072 80 060 80 080 22
1989ndash1991 075 70 065 75 085 20
K Chang et al Renewable Energy 31 (2006) 1299ndash13081304
The standard of solar collector within the first period of incentive program (1986ndash1991) is
shown in Table 3 FR(ta) and FRUL are the slope and intercept of collector efficiency
curve respectively More useful energy collected from a collector (Higher FR(ta)) and
lower heat loss (lower FRUL) are required by the end of this incentive program
The installation of SWH slowed down during 1995ndash1999 To further foster the
application of solar thermal energy the government initiated another incentive program
for four and a half years (July 2000ndash2004) following the lsquoMeasure for promoting Solar
Hot-Water Systemrsquo in 2000 According to the Measure the Energy Research Laboratories
of Industrial Technology and Research Institute (ERLITRI) conducted the performance
tests (same standard in 1991) The National Cheng Kung University Research and
Development Foundation (NCKURDF) had been authorized to organize an operation unit
to carry the tasks which include filing and auditing of applications allocation of funding
and appealing process
During 2000ndash2004 the government provides financial incentive to the end-users
according to the installed area (Ac) and the type of solar collectors which include glazed or
unglazed flat-plate type and vacuum-tube type To encourage the installation of SWH in
remote islands the amount of subsidy is doubled In addition the proper design the quality
of SWH installation and after-sale service can radically affect the reliable operation of
SWH To be eligible for this financial incentive program all qualified products
installersdealers and manufacturers must possess a certification or a license issued by
the Bureau of Energy Between 2000 and 2004 there were 241 qualified products 187
qualified installersdealers and 26 qualified manufacturers It is also noted that 96 of the
qualified installersdealers are located in west Taiwan Out of the 241 qualified products
148 products were assembled by the installers themselves The metallic (stainless or
copper) flat-plate solar collectors accounted for 78 of SWHs and the remaining 22
were the vacuum-tube solar collectors Almost all the metallic flat-plate solar collectors
were produced domestically while some of the vacuum-tube absorbers were imported
Most of the SWHs are permanently connected to an auxiliary electric heater
6 Status of incentive program (2000ndash2004)
There are two major types of solar collectors in Taiwan (Table 4) The flat-plate solar
collectors with metal absorbers and glass cover are widely used to transform solar energy
Table 4
Type of solar collector (SWH units)
2001 2002 2003 2004
Flat plate 12039 13310 15413 19910
Vacuum 650 1383 1135 1752
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1305
into heat They represent 906ndash949 of the market share in 2001ndash2004 The remaining
51ndash91 comes from the vacuum-tube solar collectors Moreover 972ndash974 of
installed solar collectors are used for the production of hot water for the homeowners
(Table 5) in which the area of solar collectors installed Ac is less than 10 m2 (residential
system Table 6) Very few commercial systems (over 100 m2 such as hotel and hospital)
had SWHs installed and this is the section which requires further promotion The
remaining SWHs are installed in dormitory swimming pools and factories
The number of SWHs installed in each quarter from July 2000 to December 2004 are
shown in Fig 5 It should be noted that MOEA issued the lsquoGuidelines for Promoting Solar
Hot-Water Systemrsquo to substitute the original Measure in early 2003 There was temporary
suspension for the application of financial incentive The installation of SWH dropped in
the first quarter (2695 SWHs installed) followed by a significant increase in the second
quarter (4768 SWHs installed) Overall the installation rates have gradually increased by
year According to the survey by the ERLITRI 965 of SWHs installed in Taiwan filed
applications from this financial incentive program
The statistics of area of solar collectors installed in four major districts and remote
islands in Taiwan are shown in Fig 6 It can be seen that installation of SWHs is mainly in
the south-western districts Fig 6(a) The southern district in Taiwan has the most
favorable sunlight conditions Residential and commercial sectors installed SWHs in view
of the longer annual sunshine duration and higher average solar intensity In west Taiwan
the high installation rate of SWHs is mainly due to the re-construction project after the 921
severe earthquake in 1999 SWH has become a standard feature for a lot of newly built
Table 5
Application of SWHs
2001 2002 2003 2004
Homeowner 12636 14644 16479 21569
Dormitory 50 45 61 83
Other 3 4 8 10
Table 6
Area of solar collector installed per SWH
Ac (m2) 2001 2002 2003 2004
Below 10 12363 14310 16087 21220
11ndash100 318 377 457 433
Above 100 8 6 4 9
1 3
1000
3000
5000
Quarter
Inst
alle
d un
its o
f SW
H
2000 (6659)2001 (13155)2002 (14693)2003 (16548)2004 (19434)
2 4
Fig 5 Installed units of SWHs
Inst
alle
d A
rea
m2
10000
20000
30000
40000
50000
60000NorthWestSouth
Year
2000 2001 2002 2003 2004 20050
1000
2000
Inst
alle
d A
rea
m2
EastRemote island
(a)
(b)
Fig 6 Regional installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081306
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1307
homes and this will be elaborated later In northern Taiwan the area of solar collectors
installed is considerably lower than that of the western and southern districts but goes up
as a result of this financial incentive program In the eastern district and remote islands
Fig 6b there are only few SWHs installed It can be attributed to the typhoon effect and
limited local qualified installersdealers
7 Effectiveness of incentive programs
In 1980 s the USA initiated state government incentives for solar installation
Lancaster and Berndt [11] indicated that property tax exemptions do not appear to be
effective in promoting alternative energy development The data on sale tax exemptions
and grant or loan programs are inconclusive However the application of solar energy in
Germany showed 30 annual growth from 1995 to 2001 As a result the incentive
program created substantial impact on the solar energy industry The area with solar
collector installed reached 900000 m2 in 2001 In Taiwan the incentive program is also
obviously critical for the promotion of SWH (Fig 7) According to the annual data of
ERLITRI since 1987 the area of solar collectors installed increased from 5000 to
60000 m2 per year during the first period of incentive program (1986ndash1991) The second
period (2000ndash2004) also shows a strong impact on the installation of SWHs The area of
solar collectors installed was 56500 m2 in 1999 and increased about 29 (25907 m2
with financial incentive out of 72800 m2 total installed area) in 2000 The annual growth
of SWH installation was 37 in 2001 and 2002 and increased up to 95 in 2003
Currently the total area of solar collectors installed in Taiwan is more than one million
square meters
1975 1980 1985 1990 1995 2000 20050
20
40
60
80
100
120
Year
Inst
alle
d ar
ea o
f so
lar
colle
ctor
Unit 1000 m2
Fig 7 Total installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9
Table 3
Standards of solar collector (1986ndash1991)
Metal type Non-metal type Unglazed type
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
FR(ta)
Lower
FRUL
Upper
1986 065 120
1987 068 100 050 100 075 25
1988 072 80 060 80 080 22
1989ndash1991 075 70 065 75 085 20
K Chang et al Renewable Energy 31 (2006) 1299ndash13081304
The standard of solar collector within the first period of incentive program (1986ndash1991) is
shown in Table 3 FR(ta) and FRUL are the slope and intercept of collector efficiency
curve respectively More useful energy collected from a collector (Higher FR(ta)) and
lower heat loss (lower FRUL) are required by the end of this incentive program
The installation of SWH slowed down during 1995ndash1999 To further foster the
application of solar thermal energy the government initiated another incentive program
for four and a half years (July 2000ndash2004) following the lsquoMeasure for promoting Solar
Hot-Water Systemrsquo in 2000 According to the Measure the Energy Research Laboratories
of Industrial Technology and Research Institute (ERLITRI) conducted the performance
tests (same standard in 1991) The National Cheng Kung University Research and
Development Foundation (NCKURDF) had been authorized to organize an operation unit
to carry the tasks which include filing and auditing of applications allocation of funding
and appealing process
During 2000ndash2004 the government provides financial incentive to the end-users
according to the installed area (Ac) and the type of solar collectors which include glazed or
unglazed flat-plate type and vacuum-tube type To encourage the installation of SWH in
remote islands the amount of subsidy is doubled In addition the proper design the quality
of SWH installation and after-sale service can radically affect the reliable operation of
SWH To be eligible for this financial incentive program all qualified products
installersdealers and manufacturers must possess a certification or a license issued by
the Bureau of Energy Between 2000 and 2004 there were 241 qualified products 187
qualified installersdealers and 26 qualified manufacturers It is also noted that 96 of the
qualified installersdealers are located in west Taiwan Out of the 241 qualified products
148 products were assembled by the installers themselves The metallic (stainless or
copper) flat-plate solar collectors accounted for 78 of SWHs and the remaining 22
were the vacuum-tube solar collectors Almost all the metallic flat-plate solar collectors
were produced domestically while some of the vacuum-tube absorbers were imported
Most of the SWHs are permanently connected to an auxiliary electric heater
6 Status of incentive program (2000ndash2004)
There are two major types of solar collectors in Taiwan (Table 4) The flat-plate solar
collectors with metal absorbers and glass cover are widely used to transform solar energy
Table 4
Type of solar collector (SWH units)
2001 2002 2003 2004
Flat plate 12039 13310 15413 19910
Vacuum 650 1383 1135 1752
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1305
into heat They represent 906ndash949 of the market share in 2001ndash2004 The remaining
51ndash91 comes from the vacuum-tube solar collectors Moreover 972ndash974 of
installed solar collectors are used for the production of hot water for the homeowners
(Table 5) in which the area of solar collectors installed Ac is less than 10 m2 (residential
system Table 6) Very few commercial systems (over 100 m2 such as hotel and hospital)
had SWHs installed and this is the section which requires further promotion The
remaining SWHs are installed in dormitory swimming pools and factories
The number of SWHs installed in each quarter from July 2000 to December 2004 are
shown in Fig 5 It should be noted that MOEA issued the lsquoGuidelines for Promoting Solar
Hot-Water Systemrsquo to substitute the original Measure in early 2003 There was temporary
suspension for the application of financial incentive The installation of SWH dropped in
the first quarter (2695 SWHs installed) followed by a significant increase in the second
quarter (4768 SWHs installed) Overall the installation rates have gradually increased by
year According to the survey by the ERLITRI 965 of SWHs installed in Taiwan filed
applications from this financial incentive program
The statistics of area of solar collectors installed in four major districts and remote
islands in Taiwan are shown in Fig 6 It can be seen that installation of SWHs is mainly in
the south-western districts Fig 6(a) The southern district in Taiwan has the most
favorable sunlight conditions Residential and commercial sectors installed SWHs in view
of the longer annual sunshine duration and higher average solar intensity In west Taiwan
the high installation rate of SWHs is mainly due to the re-construction project after the 921
severe earthquake in 1999 SWH has become a standard feature for a lot of newly built
Table 5
Application of SWHs
2001 2002 2003 2004
Homeowner 12636 14644 16479 21569
Dormitory 50 45 61 83
Other 3 4 8 10
Table 6
Area of solar collector installed per SWH
Ac (m2) 2001 2002 2003 2004
Below 10 12363 14310 16087 21220
11ndash100 318 377 457 433
Above 100 8 6 4 9
1 3
1000
3000
5000
Quarter
Inst
alle
d un
its o
f SW
H
2000 (6659)2001 (13155)2002 (14693)2003 (16548)2004 (19434)
2 4
Fig 5 Installed units of SWHs
Inst
alle
d A
rea
m2
10000
20000
30000
40000
50000
60000NorthWestSouth
Year
2000 2001 2002 2003 2004 20050
1000
2000
Inst
alle
d A
rea
m2
EastRemote island
(a)
(b)
Fig 6 Regional installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081306
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1307
homes and this will be elaborated later In northern Taiwan the area of solar collectors
installed is considerably lower than that of the western and southern districts but goes up
as a result of this financial incentive program In the eastern district and remote islands
Fig 6b there are only few SWHs installed It can be attributed to the typhoon effect and
limited local qualified installersdealers
7 Effectiveness of incentive programs
In 1980 s the USA initiated state government incentives for solar installation
Lancaster and Berndt [11] indicated that property tax exemptions do not appear to be
effective in promoting alternative energy development The data on sale tax exemptions
and grant or loan programs are inconclusive However the application of solar energy in
Germany showed 30 annual growth from 1995 to 2001 As a result the incentive
program created substantial impact on the solar energy industry The area with solar
collector installed reached 900000 m2 in 2001 In Taiwan the incentive program is also
obviously critical for the promotion of SWH (Fig 7) According to the annual data of
ERLITRI since 1987 the area of solar collectors installed increased from 5000 to
60000 m2 per year during the first period of incentive program (1986ndash1991) The second
period (2000ndash2004) also shows a strong impact on the installation of SWHs The area of
solar collectors installed was 56500 m2 in 1999 and increased about 29 (25907 m2
with financial incentive out of 72800 m2 total installed area) in 2000 The annual growth
of SWH installation was 37 in 2001 and 2002 and increased up to 95 in 2003
Currently the total area of solar collectors installed in Taiwan is more than one million
square meters
1975 1980 1985 1990 1995 2000 20050
20
40
60
80
100
120
Year
Inst
alle
d ar
ea o
f so
lar
colle
ctor
Unit 1000 m2
Fig 7 Total installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9
Table 4
Type of solar collector (SWH units)
2001 2002 2003 2004
Flat plate 12039 13310 15413 19910
Vacuum 650 1383 1135 1752
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1305
into heat They represent 906ndash949 of the market share in 2001ndash2004 The remaining
51ndash91 comes from the vacuum-tube solar collectors Moreover 972ndash974 of
installed solar collectors are used for the production of hot water for the homeowners
(Table 5) in which the area of solar collectors installed Ac is less than 10 m2 (residential
system Table 6) Very few commercial systems (over 100 m2 such as hotel and hospital)
had SWHs installed and this is the section which requires further promotion The
remaining SWHs are installed in dormitory swimming pools and factories
The number of SWHs installed in each quarter from July 2000 to December 2004 are
shown in Fig 5 It should be noted that MOEA issued the lsquoGuidelines for Promoting Solar
Hot-Water Systemrsquo to substitute the original Measure in early 2003 There was temporary
suspension for the application of financial incentive The installation of SWH dropped in
the first quarter (2695 SWHs installed) followed by a significant increase in the second
quarter (4768 SWHs installed) Overall the installation rates have gradually increased by
year According to the survey by the ERLITRI 965 of SWHs installed in Taiwan filed
applications from this financial incentive program
The statistics of area of solar collectors installed in four major districts and remote
islands in Taiwan are shown in Fig 6 It can be seen that installation of SWHs is mainly in
the south-western districts Fig 6(a) The southern district in Taiwan has the most
favorable sunlight conditions Residential and commercial sectors installed SWHs in view
of the longer annual sunshine duration and higher average solar intensity In west Taiwan
the high installation rate of SWHs is mainly due to the re-construction project after the 921
severe earthquake in 1999 SWH has become a standard feature for a lot of newly built
Table 5
Application of SWHs
2001 2002 2003 2004
Homeowner 12636 14644 16479 21569
Dormitory 50 45 61 83
Other 3 4 8 10
Table 6
Area of solar collector installed per SWH
Ac (m2) 2001 2002 2003 2004
Below 10 12363 14310 16087 21220
11ndash100 318 377 457 433
Above 100 8 6 4 9
1 3
1000
3000
5000
Quarter
Inst
alle
d un
its o
f SW
H
2000 (6659)2001 (13155)2002 (14693)2003 (16548)2004 (19434)
2 4
Fig 5 Installed units of SWHs
Inst
alle
d A
rea
m2
10000
20000
30000
40000
50000
60000NorthWestSouth
Year
2000 2001 2002 2003 2004 20050
1000
2000
Inst
alle
d A
rea
m2
EastRemote island
(a)
(b)
Fig 6 Regional installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081306
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1307
homes and this will be elaborated later In northern Taiwan the area of solar collectors
installed is considerably lower than that of the western and southern districts but goes up
as a result of this financial incentive program In the eastern district and remote islands
Fig 6b there are only few SWHs installed It can be attributed to the typhoon effect and
limited local qualified installersdealers
7 Effectiveness of incentive programs
In 1980 s the USA initiated state government incentives for solar installation
Lancaster and Berndt [11] indicated that property tax exemptions do not appear to be
effective in promoting alternative energy development The data on sale tax exemptions
and grant or loan programs are inconclusive However the application of solar energy in
Germany showed 30 annual growth from 1995 to 2001 As a result the incentive
program created substantial impact on the solar energy industry The area with solar
collector installed reached 900000 m2 in 2001 In Taiwan the incentive program is also
obviously critical for the promotion of SWH (Fig 7) According to the annual data of
ERLITRI since 1987 the area of solar collectors installed increased from 5000 to
60000 m2 per year during the first period of incentive program (1986ndash1991) The second
period (2000ndash2004) also shows a strong impact on the installation of SWHs The area of
solar collectors installed was 56500 m2 in 1999 and increased about 29 (25907 m2
with financial incentive out of 72800 m2 total installed area) in 2000 The annual growth
of SWH installation was 37 in 2001 and 2002 and increased up to 95 in 2003
Currently the total area of solar collectors installed in Taiwan is more than one million
square meters
1975 1980 1985 1990 1995 2000 20050
20
40
60
80
100
120
Year
Inst
alle
d ar
ea o
f so
lar
colle
ctor
Unit 1000 m2
Fig 7 Total installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9
1 3
1000
3000
5000
Quarter
Inst
alle
d un
its o
f SW
H
2000 (6659)2001 (13155)2002 (14693)2003 (16548)2004 (19434)
2 4
Fig 5 Installed units of SWHs
Inst
alle
d A
rea
m2
10000
20000
30000
40000
50000
60000NorthWestSouth
Year
2000 2001 2002 2003 2004 20050
1000
2000
Inst
alle
d A
rea
m2
EastRemote island
(a)
(b)
Fig 6 Regional installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081306
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1307
homes and this will be elaborated later In northern Taiwan the area of solar collectors
installed is considerably lower than that of the western and southern districts but goes up
as a result of this financial incentive program In the eastern district and remote islands
Fig 6b there are only few SWHs installed It can be attributed to the typhoon effect and
limited local qualified installersdealers
7 Effectiveness of incentive programs
In 1980 s the USA initiated state government incentives for solar installation
Lancaster and Berndt [11] indicated that property tax exemptions do not appear to be
effective in promoting alternative energy development The data on sale tax exemptions
and grant or loan programs are inconclusive However the application of solar energy in
Germany showed 30 annual growth from 1995 to 2001 As a result the incentive
program created substantial impact on the solar energy industry The area with solar
collector installed reached 900000 m2 in 2001 In Taiwan the incentive program is also
obviously critical for the promotion of SWH (Fig 7) According to the annual data of
ERLITRI since 1987 the area of solar collectors installed increased from 5000 to
60000 m2 per year during the first period of incentive program (1986ndash1991) The second
period (2000ndash2004) also shows a strong impact on the installation of SWHs The area of
solar collectors installed was 56500 m2 in 1999 and increased about 29 (25907 m2
with financial incentive out of 72800 m2 total installed area) in 2000 The annual growth
of SWH installation was 37 in 2001 and 2002 and increased up to 95 in 2003
Currently the total area of solar collectors installed in Taiwan is more than one million
square meters
1975 1980 1985 1990 1995 2000 20050
20
40
60
80
100
120
Year
Inst
alle
d ar
ea o
f so
lar
colle
ctor
Unit 1000 m2
Fig 7 Total installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9
K Chang et al Renewable Energy 31 (2006) 1299ndash1308 1307
homes and this will be elaborated later In northern Taiwan the area of solar collectors
installed is considerably lower than that of the western and southern districts but goes up
as a result of this financial incentive program In the eastern district and remote islands
Fig 6b there are only few SWHs installed It can be attributed to the typhoon effect and
limited local qualified installersdealers
7 Effectiveness of incentive programs
In 1980 s the USA initiated state government incentives for solar installation
Lancaster and Berndt [11] indicated that property tax exemptions do not appear to be
effective in promoting alternative energy development The data on sale tax exemptions
and grant or loan programs are inconclusive However the application of solar energy in
Germany showed 30 annual growth from 1995 to 2001 As a result the incentive
program created substantial impact on the solar energy industry The area with solar
collector installed reached 900000 m2 in 2001 In Taiwan the incentive program is also
obviously critical for the promotion of SWH (Fig 7) According to the annual data of
ERLITRI since 1987 the area of solar collectors installed increased from 5000 to
60000 m2 per year during the first period of incentive program (1986ndash1991) The second
period (2000ndash2004) also shows a strong impact on the installation of SWHs The area of
solar collectors installed was 56500 m2 in 1999 and increased about 29 (25907 m2
with financial incentive out of 72800 m2 total installed area) in 2000 The annual growth
of SWH installation was 37 in 2001 and 2002 and increased up to 95 in 2003
Currently the total area of solar collectors installed in Taiwan is more than one million
square meters
1975 1980 1985 1990 1995 2000 20050
20
40
60
80
100
120
Year
Inst
alle
d ar
ea o
f so
lar
colle
ctor
Unit 1000 m2
Fig 7 Total installed area of solar collectors
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9
K Chang et al Renewable Energy 31 (2006) 1299ndash13081308
8 Conclusions
Taiwan has a promising potential for the application of solar thermal energy and SWH
is now a reliable and mature product here However the population of residual SWH is
only about 35 Other than the government financial incentive program lower capital
cost (payback period) availability of local installersdealers and climatic conditions (eg
typhoon effect) are considered to be the major factors influencing the popularization of
SWHs The problems of limited commercial systems also need to be further addressed
Acknowledgements
This work was supported under the grant of 93-D0102 by the Bureau of Energy
Ministry of Economic Affairs ROC
References
[1] Evrendilek F Ertekin C Assessing the potential of renewable energy sources in Turkey Renew Energy
200328(15)2303ndash15
[2] Taiwan tourism bureau ministry of transportation and communications Taiwan ROC httpwww
taiwantourismorg
[3] Bureau of energy ministry of economic affairs Taiwan ROC httpwwwmoeeaboegovtw
[4] Bureau of Energy Ministry of economic affairs The energy situation in Taiwan March 2001
[5] Mirza UK Maroto-Valer MM Ahmad N Status and outlook of solar energy use in Pakistan Renew Sustain
Energy Rev 20037(6)501ndash14
[6] Jafar M Renewable energy in the south pacific-options and constraints Renew Energy 200019(1)305ndash9
[7] Kalogirou S Solar water heating in cyprus current status of technology and problems Renew Energy 1997
10(1)107ndash12
[8] Haralambopoulos D Pararsenos GF Kovras H Assessing the economic aspects of solar hot water
production in Greece Renew Energy 199711(2)153ndash67
[9] Tang J Climate and solar insolation of Taiwan Energy research laboratory Taiwan Industrial Technology
Research Institute 2000
[10] Central weather bureau ministry of transportation and communications Taiwan ROC httpwwwcwb
govtw
[11] Lancaster RR Berndt MJ Alternative energy development in the USA the effectiveness of state
government incentives Energy Policy 198412(2)170ndash9