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54 Capacity building Training, especially of engineers and installers, is important for the deployment of REHC technologies. Lack of knowledge and competence of professionals working in energy service companies or as heating installers, architects, building developers or city planners is a barrier to diffusion. To have enough competent installers located close to customers is also crucial to provide on-going repairs and maintenance services of the installed systems. One of the circumstances hindering REHC by the manufacturing industry is that in many cases production has not yet reached sufficiently high volume to gain economies of scale. Often, manufacture is not fully automated and enterprises remains small and local. The lack of standardisation at the regional or global level (for example from regulations, labelling, normalisation, testing requirements, certification procedures) results in companies having difficulties penetrating markets abroad. Most suppliers therefore remain as small and medium sized enterprises (SMEs) which limits the future growth of their capacity. Behaviour Path dependency In some countries REHC is already widespread. This can be partially explained by existing path dependencies such as woody biomass used for district heating in Sweden. In countries where there is no history of district heating, then it would be more difficult to introduce a biomass district heating system because the paradigm shift from distributed heating systems would be unattractive for the current owners of conventional appliances. A shift could be even more difficult when there are no successful examples that planners can refer to; hence the value of demonstration plants even though their capital costs may be high. Path dependency for solar thermal in countries such as Cyprus, Israel and Greece resulted from strong public support gained over the past decades through different policy instruments including awareness raising (Cyprus), regulation (Israel) and financial (Greece) (Piria, 2007). The resulting critical mass market resulted from trained installers, wide awareness by potential users, and marketing structures on the supply side. This resulted in self-sustaining markets that no longer need strong policy incentives. Split incentives In rental properties there is little incentive for the landlord to invest in efficient REHC technologies that would reduce on-going heating and cooling bills because these are carried by the lessee. Conversely, the lessee has little possibility to benefit from any incentives to invest in fixed equipment for a rental property because there is a risk of moving out before the end of the payback period. Cost structure REHC technologies may become more cost-efficient in the longer term but a current barrier can be the relatively high up-front costs of the installation. If the simple payback method is used to estimate the attractiveness of a REHC technology investment, it could seem less valuable than if the net-present- value method is used that takes into account any value created after the payback time. Measurability Sound statistics on renewable energies are important in order to ascertain energy balances at the country level, being the essential basis for market analysis, successful policy-making and evaluation. Heat production is not usually metered, but can be crudely assessed on the basis of total capacityPDF Image | RENEWABLES FOR HEATING AND COOLING
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