solar water heaters in taiwan

10
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 1986–1991 and 2000–2004. 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 installers/dealers 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 islands/areas, renewable energy appears to be sustainable and a clean source of energy derived from nature. For example, renewable energy accounted for 14.4% of Turkey’s 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) 1299–1308 www.elsevier.com/locate/renene 0960-1481/$ - see front matter q 2005 Elsevier Ltd. All rights reserved. doi:10.1016/j.renene.2005.07.003 * Corresponding author. Tel.: C886 6 2392811x210; fax: C886 6 2391915. E-mail address: [email protected] (K. Chung).

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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