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16 The analysis shows that well designed supporting policies have been highly effective in obtaining market expansion of REHC technologies. For example, solar water heater installations can compete with conventional heating fuels and are growing rapidly in a number of regions even where solar radiation levels are relatively low. Strong national policies have proved to be successful in high latitude countries such as Germany and Austria for example that have relatively low solar radiation levels and cheap conventional energy alternatives. The uptake of small scale, geothermal heat pumps used for both heating and cooling could continue to increase as the technology moves from near-market to mass- market in more countries. However, due to their current higher costs, this will only be in countries where strong supporting policies exist, as exemplified by Sweden. Current policies to support greater deployment of REHC are mainly in the form of incentives (“carrots”), although good examples also exist of successful regulatory (“stick”) and education (“guidance”) policies. Policies in place across 12 OECD countries (Canada, Denmark, France, Germany, Ireland, Italy, Japan, Netherlands, Norway, Spain, Sweden, and United Kingdom, selected due to their varying approaches to policy development in this area), were reviewed, along with relevant policies of the European Union. The number of policies in support of solar thermal and biomass heating appears to be increasing with less comparable support for geothermal. Examples of good practice policies for each technology are elaborated in the report for each kind of policy. Market-led examples are given for China, New Zealand and Iceland where REHC technology deployment has occurred without the need for policy support due to particularly abundant renewable energy resources, or where conventional alternatives are relatively expensive or unavailable (especially in rural areas). The stage of maturity of a specific REHC technology can also affect the choice of policy support mechanism. Additional policy support for district heating and combined heat and power (CHP) systems can also be combined with renewable heat deployment. Detailed analysis of policies and measures used to support REHC technology development and deployment in the 12 OECD countries, including how they have evolved over time, has enabled recommendations to be made. These are aimed at policy makers who are intent on increasing national and regional REHC markets in order to gain a range of benefits as a result. Recommendations and Conclusions Solarwaterheating,biomassforindustrialanddomesticheating,deepgeothermalheatandshallow geothermal heat pumps are amongst the lowest cost options for reducing both CO2 emissions and fossil fuel dependency. In many circumstances these technologies offer net savings as compared to conventional heating systems in terms of life-cycle costs. Deployment of REHC technologies is very variable, even amongst countries with similar conditions. Costs of REHC systems vary considerably with location depending on the availability of natural resources. Local energy prices for conventional electrical and fossil fuel heating systems impact on their cost competitiveness. Undertaking local cost/benefit analyses are therefore recommended. Well designed policies have achieved encouraging results in leading countries. For instance, Germany has nearly 5 GW of solar water heaters installed (around 750 000 units); about 30% of houses in Sweden have geothermal heat pumps with a total capacity of nearly 4 GW; and Canada has over 3 million homes producing around 100PJ (2.4 Mtoe) of heat from woody biomass each year with four times this amount produced for industrial heat giving a total equivalent to around 12 Mt of oil each year. Yet other countries with similar conditions make minimal use of their renewable energy resources.PDF Image | RENEWABLES FOR HEATING AND COOLING
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