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concentrating solar power and photovoltaics). Improved solar technologies, due in large part to the leadership and support of the DOE program, have yielded substantial early market successes for several market segments. Residential Solar Water Heating Market Solar water heating (SWH) was used extensively in parts of the United States between the late 1800s and WWII, but the industry declined due to copper shortages during WWII and the rise of low-cost, widely available natural gas and electricity after WWII. During the energy crises of the 1970s, SWH markets experienced rapid growth, fueled by federal and state tax credits. Poorly designed incentives and a lack of standards led to sales of some expensive, poorly performing systems installed by inexperienced and sometimes unscrupulous firms. These problems hurt the reputation of the entire solar industry. When federal tax credits lapsed in 1985, the industry experienced a severe contraction. To help overcome some of these problems, DOE supported the establishing of the Solar Rating and Certification Corporation (SRCC) to test and certify the performance of solar collectors and systems. The SRCC, coupled with the shakeout of marginal producers, helped to reduce a major barrier to solar water heating—namely, reliability—and significant progress was also made in reducing costs. The SWH firms remaining today have high-quality products and good service records, although market penetration is very low in most of the United States. Areas with high electricity costs, significant solar radiation, and state incentives (e.g., Hawaii, Florida) have achieved substantial market penetration. Internationally, solar water heating is expanding rapidly in countries that have offered subsidies, have less-developed energy infrastructure, or both. SWH systems have achieved significant installation rates in countries as diverse as Israel, Turkey, and China. Today, an estimated 6,000 solar domestic water heaters (for a total area of 25,000 m2) are sold in the United States each year, with more than half the sales in Hawaii. By comparison, SWH is widely used in Germany, Israel, China, the Mediterranean countries, and elsewhere. For example, about 80,000 solar water heaters were sold and installed in Germany in 2003 due to an aggressive government policy on solar energy technologies. In the United States, pool 1 U.S. Department of Energy, with representatives of the solar water heating industry. A 20-Year Industry Plan for Water Heating Technology: Solar and Efficient Water Heating, A Technology Roadmap, 2005. Solar Water Heating: Success Around the World The energy conservation, environmental, and national security benefits of solar water heaters are recognized and appreciated around the world, as shown in the following table: Emerging economies such as China and India rely on solar water heaters to free up valuable electricity and fossil fuels for more productive commercial and industrial uses, while still meeting the demands of their growing economies. Nations with geographically or politically constrained access to energy (e.g., Japan, Israel) consider solar water heaters as integral components of their energy or national security policies. European consumers and nations appreciate the environmental benefits conferred by solar water heaters.1 2PDF Image | Solar Energy Technologies Program
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