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Solar Thermal Technologies

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The MNES has been supporting solar thermal technologies promoting it with various programs, some of which are listed below:

-Solar water heating using flat plate collector

-Solar process heating using concentrating collectors  for low (40-80 deg C) and medium (80-250 deg C) temperature ranges.

-solar thermal power generation

-solar pond for process heating in low temperature range and for desalination

-Solar cooker

-Solar desalination

-Solar detoxification

 

Products / Services of NXG Solar India

Solar Energy Products »  Solar Water Heater Commercial, Solar Water Heater ... Hide

    * Solar Water Heater Commercial
    * Solar Water Heater Domestic
    * Solar System
    * Solar Water Heater Spare Part
    * Solar Water Pumping System
    * Solar Water Purifier
    * Solar Light
    * Solar Panel
    * Solar Heating System
    * Solar Energy Equipment
    * Solar Energy Collector Evacuated Tube
    * Solar Led Light
    * Solar Street Light
    * Solar Street Light Photovoltaic
    * Solar Energy Collector
    * Solar Swimming Pool Heating System
    * Solar Power Plant
    * Solar Lighting Kit
    * Solar Photovoltaic System
    * Solar Lantern
    * Solar Absorber Plate
    * Solar Garden Light
    * Solar Flat Plate
    * Solar Security Fence
    * Solar Pump
    * Solar Product Distributor
    * Solar Water Heater AMC

 

 

 

SOLAR THERMAL COLLECTORS (SOLAR WATER HEATING)

1.1.1  Solar Collectors
 
The flat plate collectors are mainly used for water heating systems, however the
evacuated tube collectors are presently being introduced in Indian market.
 
1.1.1.1Flat Plate Collector
 
The flat plate collectors, which are most important component of the solar water
heating system, are manufactured in India. Though different materials like stainless
steel, aluminium, and galvanised iron etc. could be effectively used for making
absorbers of the flat plate collector, majority of the collector manufacturers in India
use copper tubes (risers) and copper plates for the absorbers. Further, the absorber is
selectively coated with metal oxides. Non-selective coatings (such as black paint) are
not used presently. The collector has standard 2m
2
-absorber area and has single
glazing of toughened/hardened glass.

 

To maintain the quality of collectors the collectors are tested as per the standards set
by Bureau of Indian Standards (BIS). The standards are reviewed periodically by the
BIS. The MNES has set up seven testing centers across the country, for testing of flat
plate collectors as per the BIS standards.
 
As a result of various promotional efforts the manufacturing base has since improved
substantially with 44 manufacturers securing BIS certification for their products. The
cost of the collector in Indian market varies in the range of Rs. 6000 to 7500 (1Euro =
40 Indian Rupees).
 
1.1.1.2Evacuated Tube Collector
 
The evacuated tube collector offers higher efficiency and can deliver thermal energy
at temperatures up to 120
0
C whereas for the flat plate collectors, the temperature limit
is 85
0
C. Thus, the evacuated tube collectors are useful (i) in  case of lower radiation
levels, (ii) for medium temperature applications, and (iii) for situations where there is
limited availability of area for installation of solar system. In India the evacuated tube
collectors have been introduced recently only.  
 
1.2  MARKET
 
There are two  distinct market segments for solar water heating systems (SWHS) in
India, namely, (i) domestic and (ii) commercial and industrial. In commercial sector
SWHS are used to meet the hot water demand e.g. in hotels and hospitals etc. while in
industrial sector, these systems are used for preheating boiler feed water or to meet
the process heating requirements. In domestic sector, SWHS are used to meet
household hot water requirements.  
 
So far, the majority of installations in India are in the commercial and industrial
sector, with 80% of the collector area installed in commercial and industrial sector,
unlike Europe where the focus is mainly on the domestic sector. But as result of
improved economics of solar systems, due to increase in  electrical prices, the
domestic market is increasing in India. As per MNES, the potential of solar water
heating systems in the country is around 30 million m
2
 of collector area. The MNES
policy (draft) has set the goal of installing 5-million m
2
 collector  area during 2000-2012, with equal distribution of collector area in domestic as well as commercial and
industrial sector. Various policy incentives have been suggested to achieve this target,
these are discussed in the Section 3 on `Present and Future Policies’.  
 

IMAGE


Typical commercial solar water heating system in India

 

As a result of various promotional efforts there has been a steady growth in the
cumulative collector area installed as shown in Figure 1. The total collector area
installed has increased from 119000 m
2
 in 1989 to 525000 m
2
 as on March 2001.

 

Figure 1.1: Cumulative installations of solar water heating systems
 
But this market penetration is still small when
compared with some of the European countries
like Greece, Germany, and Spain etc., especially
when compared in terms of collector area
installed per unit population. The installations per
1000 inhabitants are 5.1, 15.2 and 0.52 in Greece,
Germany and India respectively.  
 
In case of Indian market, the marketing,
installation of systems and after sales service are
responsibility of the manufacturer as the chain of
dealers and installers has not been developed,
which is very important for market penetration.
 
 
 
1.3  POLICY AND PROMOTIONAL MEASURES
 
Looking at vast potential and resource availability, the Government of India, through
MNES, provided various interventions in terms of subsidy and other fiscal benefits
for the promotion of solar water heating systems.

 

1.3.1  Subsidies
 
The capital subsidy for solar water heating systems was abolished in 1994 and
provisions were made for soft loans. Indian Renewable Energy Development Agency
(IREDA) and six other designated banks provide the financing for solar thermal
systems. The financing norms are given in Table 1.1
 
Table 1.1: Rates of Interest for soft loans for solar water heating systems available
from banks and IREDA under the Interest Subsidy Scheme
Technology  Implementing
organization
Category of end
user
Rate of
interest
Solar water heating
system (up to 2000
litres per day
capacity)
Banks / Housing and
Urban  Development
Corporation
Individual,
institution,
association, small
business
establishments
5%* (to
end user)
Solar water heating
system (up to 2000
litres per day
capacity)
IREDA (through
financial
intermediaries). IREDA
provides loans to
financial intermediaries
@2.5% rate of interest
Individual,
institution,
association, small
business
establishments
5%* (to
end user)
Solar water heating
system (any
capacity), solar air
heating system,
solar desalination
system, solar
swimming pool
heating system  
IREDA (direct or
through financial
intermediaries)**
Institutions, trusts,
charitable
organizations etc.
(non-profit
organizations)
5%*
Solar water heating
system (any
capacity), solar air
heating system,
solar desalination
system, solar
swimming pool
heating system
IREDA (direct or
through financial
intermediaries)**
Industry, hotels and  
other commercial
organisations (profit
making)
8.3%
* End-users (other than individuals) will have to give an undertaking that no depreciation allowance
will be claimed under income tax rules.
** The financial intermediaries may charge a spread up to 4% over the rate charged from them by
IREDA.
 
The financing structure for different type of solar thermal systems is explained in
figure 2. 

1.3.2  Fiscal Incentives
 
One of the major incentive provided by the Government of India for solar thermal
systems is 100% accelerated depreciation i.e. the tax benefit in the first year of
installation of the system itself. However, there is  no provision of tax benefits for
individual consumers. In some states in India, the owners of domestic solar thermal
systems get rebate in their electricity bill, in terms of 2 to 3% reduction in tariff. The
other incentives are as follows:
 
A. Indirect Taxes
          Sales Tax
     Exemption/reduction in Central Sales Tax and General Sales Tax are available on
sale of renewable energy equipment in various states.
 
B.  Direct Taxes
     Notification No. SO 276 (E)
     (i) Accelerated Depreciation on specified  Non-conventional Renewable Energy
devices/systems in the first year of Installation of the projects. : 100%

 

1.4   SOLAR THERMAL TECHNOLOGIES IN THE CONTEXT OF
CLEAN DEVELOPMENT MECHANISM  
 
The clean development mechanism (CDM) would promote use of renewable energy
technologies by providing benefits of reduction in emission of green house gases. The
solar thermal technologies, especially the solar water heating systems, are becoming
commercially viable in India. The CDM mechanism could push these technologies
further. The major issues related to CDM in context of solar thermal systems in India
are Addationality, Baselines, Cost, and Monitoring and Verification etc. 

 

1.4.1  Additionality
 
The solar water heating systems are becoming economically viable in some of the
sectors, in such case meeting the additionally criterion becomes critical.
 
Technical additionality
 The solar water heating systems are fully manufactured in India. New mechanisms
for increasing the adoption of solar water heating systems, like  the energy services
company and the third party financing would meet this criterion, as these concepts
have not been demonstrated in India. Further, in case of medium temperature
concentrating collectors for industrial and commercial applications in India,  since this
technology is not being used anywhere, implementing such a project satisfies this
criterion.
 
Financial additionality
Though the solar water heating systems are becoming economically viable in some
sectors, the initial costs are still higher thereby meeting the financial additionality
criterion. In case of concentrating collectors, the costs are even higher (the systems
have negative NPV against the present costs of solar system and fuel).
 
Offset additionality
The solar thermal technologies are  zero emission technologies. The solar water
heating system, for domestic application has potential of saving 1.5 tonne of
CO2/annum. The emission reduction is 0.3 tonne/annum/m
2
 in case of oil
replacement.  


1.4.2  Baseline
 
The baseline for estimation of emission reduction will be different for different type
of applications of solar thermal systems. In case of domestic solar water heating
systems the baseline would be the electrical saving resulting from the SWHS and the
emission reduction will depend on the average emissions for power generation, and
the resource mix for power generation. In case of industrial systems, the existing
boiler (or the boiler with maximum efficiency with present technology) will form the
baseline.  
 
1.4.3  Cost
 
The cost of CO2  varies form application to application from US$ 3/tonne of CO2 to
US$ 12/tonne of CO2. The costs of CO
2,  given in table below, are estimated
considering a minimum internal rate of return of 18% and 21%, for commercial and
industrial systems and for domestic systems respectively, based on the cost of capital
employed.


Table 1.2  Cost of Carbon Dioxide
Description of
system/Application
Baseline  Approximate
Cost of CO2
 
(US$/tonne)
Solar water heating system
for domestic application.
Domestic water heating using
electrical power. Emission saving
based on resource mix for power
generation, presently 1.1 kg CO
2
 
emission/ kWh
3 - 5
Solar water heating
systems for industrial
application.
Heating using boilers fired by fuel
oil/diesel.  
5  
Medium temperature solar
thermal systems using solar
concentrators.
Heating using boilers fired by fuel
oil/diesel.
12
 
1.4.4  Monitoring And Verification
 
The distributed nature and smaller individual capacities of solar thermal systems
increases the monitoring and verification costs. As per one estimate the monitoring
and verification costs could be as high as 60% of the project cost.