the solar thermal market in lebanon report- april 2010.pdf
TRANSCRIPT
Current Status, Development, and Barriers
THE SOLAR THERMAL MARKET IN LEBANON
THE SOLAR THERMAL MARKET IN LEBANON
This report presents the results of the two market surveys conducted by the United Nations Development Programme (UNDP)- the Lebanese Center for Energy Conservation (LCEC) to evaluate the solar thermal market in Lebanon. Covering more than 75% of the solar thermal companies in the local market in 2006 and 2008, the report offers a clear idea on the market current status, development, and barriers.
2010
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The Solar Thermal Market in Lebanon LCEC 2O1O
The Solar Thermal Market in Lebanon: Current Status, Development, and Barriers A presentation of the results of the two market surveys conducted by the United
Nations Development Programme (UNDP)‐ the Lebanese Center for Energy Conservation (LCEC) in 2006 and 2008.
By The Lebanese Center for Energy Conservation (LCEC)
March 2010 Beirut, Lebanon
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Copyright © UNDP/GEF ‐ 2010 Reproduction is authorized provided the source is acknowledged and provided the reproduction is not sold. The United Nations Development Programme (UNDP) is the UN’s principle provider of development, advice, advocacy and grant support. With 131 country offices, it has long enjoyed the trust and confidence of governments and NGOs in many parts of the developing as well as developed world. It is typically regarded as a partner rather than as an adversary, and its commitment to a universal presence proved especially useful in post‐conflict situation and with states that have been otherwise isolated from the international community. For further information: United Nations Development Programme, www.undp.org.lb Lebanese Center for Energy Conservation, www.lcecp.org.lb Note: The information contained within this document has been developed within a specific scope, and might be updated in the future.
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Table of Contents Survey Methodology .................................................................................................................. 13
Survey Questionnaire ................................................................................................................. 14
Survey Interpretation ................................................................................................................. 14
Companies Profiles ..................................................................................................................... 15
Proposed Equipment .................................................................................................................. 17
Range of Application .................................................................................................................. 25
Equipment Brand Name and Origin .............................................................................................. 32
Level of Technicalities ................................................................................................................. 36
Comparison with International Markets ....................................................................................... 41
Obstacles and Complaints of the Dealers ...................................................................................... 43
Recommendations ..................................................................................................................... 44
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List of Figures Figure 1: Estimated current and future solar installations in Lebanon (2005‐2020) ................. 10 Figure 2: Alignment of efforts to leverage at least 50 to 100 million USD ............................... 11 Figure 3: Solar thermal companies in business .................................................................... 15 Figure 4: Type of activity distribution ................................................................................. 16 Figure 5: Regional distribution .......................................................................................... 16 Figure 6: Solar panel distribution by type for Phase 1 .......................................................... 17 Figure 7: Solar panel distribution by type for Phase 2 .......................................................... 17 Figure 8: Solar panels distribution by model for Phase 2 ...................................................... 18 Figure 9: Storage tank distribution by size for Phase 1 ......................................................... 19 Figure 10: Storage tank distribution by size for Phase 2 ....................................................... 19 Figure 11: Storage tanks distribution by material for Phase 1 ............................................... 20 Figure 12: Storage tank distribution by insulation for Phase 1 .............................................. 20 Figure 13: Number of companies offering the additional equipment to customers ................. 21 Figure 14: Percentage of additional equipment offered to customers ................................... 22 Figure 15: Solar panel warranties in years .......................................................................... 23 Figure 16: Storage tank warranties in years ........................................................................ 23 Figure 17: Common types of payment ............................................................................... 24 Figure 18: Range of Applications Distribution in Phase 1 ...................................................... 25 Figure 19: Range of applications distribution in Phase 2 ....................................................... 25 Figure 20: Companies offering the various applications in Phase 1 ........................................ 26 Figure 21: Companies offering the various applications in Phase 2 ........................................ 26 Figure 22: Application area (in m2) distribution in Phase 1 ................................................... 28 Figure 23: Application area (in m2) distribution in Phase 2 ................................................... 28 Figure 24: Companies performing the various areas of applications in Phase 1 ...................... 29 Figure 25: Companies performing the various areas of applications in Phase 2 ...................... 29 Figure 26: Solar thermal application distribution in Phase 1 ................................................. 30 Figure 27: Solar thermal application distribution in Phase 2 ................................................. 30 Figure 28: Number of companies and solar thermal applications in Phase 1 .......................... 31 Figure 29: Number of companies and solar thermal applications in Phase 2 .......................... 31 Figure 30: Solar panels country of origin Phase 1 ................................................................ 32 Figure 31: Flat plate collectors country of origin Phase 2 ..................................................... 33 Figure 32: Evacuated tube collectors country of origin Phase 2 ............................................ 33 Figure 33: Storage tanks country of origin Phase 1 .............................................................. 34
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Figure 34: Flat plate storage tanks by country of origin Phase 2 ............................................ 34 Figure 35: Evacuated storage tanks by country of origin Phase 2 .......................................... 35 Figure 36: Testing facilities for manufacturers Phase 1 ........................................................ 36 Figure 37: Testing facilities for manufacturers Phase 2 ........................................................ 37 Figure 38: Technical personnel percentage: suppliers vs. manufacturers for Phase 1 .............. 38 Figure 39: Technical personnel percentage: suppliers vs. manufacturers for Phase 2 .............. 38 Figure 40: Average technical personnel for suppliers vs. manufacturers for Phase 2 ............... 39 Figure 41: Applicable standards: suppliers vs. manufacturers for Phase 2 .............................. 40 Figure 42: Obstacles and barriers facing the solar thermal market ........................................ 43 Figure 43: Proposed solutions for removal of barriers to solar thermal market ...................... 44
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List of Tables
Table 1: Solar Market Survey Information (Phases 1 & 2) ..................................................... 13 Table 2: Categories Used for Application Area in Phases 1 and 2 ........................................... 27 Table 3: Comparison of International Domestic Solar Hot Water Prices ................................. 41 Table 4: Qualitative Comparison with Similar Solar Thermal Systems .................................... 42
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Acknowledgments
This report was commissioned and produced by the United Nations Development Programme (UNDP) ‐ the Lebanese Center for Energy Conservation (LCEC). Financing was provided by the Global Environment Facility (GEF), the Ministry of Energy and Water in Lebanon (MEW), and the United Nations Development Programme (UNDP). Lead Author
Nader Hajj Shehadeh (Lebanese Center for Energy Conservation)
Project Manager
Pierre El Khoury (Lebanese Center for Energy Conservation)
Design and Layout
Layal Attieh (United Nations Development Programme)
Other Contributors and Reviewers
Ahmad Houri (Lebanese Solar Energy Society)
Jihan Seoud (United Nations Development Programme)
Karim Hashash (United Nations Development Programme)
Nay Azzam (Lebanese Center for Energy Conservation Intern 2009)
Rani Al Achkar (Lebanese Center for Energy Conservation)
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List of Acronyms/ Abbreviations
CDM Clean Development Mechanism
CDR Council of Development and Reconstruction
CEDRO Country energy efficiency and renewable energy demonstration project for the
recovery of Lebanon
EE Energy Efficiency
ESCO Energy Service Company
GDP Gross Domestic Product
GEF Global Envirnoment Facility
IRI Industrial Research Institute
LCEC Lebanese Center for Energy Conservation
LCECP Lebanese Center for Energy Conservation Project
Libnor Lebanese Norms Institute
LSES Lebanese Solar Energy Society
MED‐EMIP Euro‐Mediterranean Energy Market Integration Project
MED‐ENEC Euro‐Mediterranean Energy Efficiency in the Construction Sector
MED‐ENER Mediterranean Association of the National Agencies for Energy Conservation
MEW Ministry of Energy and Water
MoF Ministry of Finanace
MSP Mediterranean Solar Plan
NGO Non Governmental Organization
OEA Order of Engineers and Architects
RCREEE Regional Center for Renwable Energy and Energy Efficiency
RE Renewable Energy
UN United Nations
UNDP United Nations Development Programme
USD United States Dollars
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Abstract
This report presents the results of the two market surveys conducted by the Lebanese Center for Energy Conservation to study the solar thermal market in Lebanon. Covering the majority of the solar thermal companies in the local market in years 2006 and 2008, the report presents a clear idea on the market development, incentives and barriers. The results show good market development in the past years even under difficult circumstances without much support, as claimed by the solar thermal companies operating in Lebanon. In 2005, the market had 29 companies working in solar heating applications, half of which were manufacturers. In the period between 2005 and 2008, one manufacturer and several suppliers were established, thus increasing the total number of solar thermal dealers to 37. In 2008 38% of the local solar thermal dealers were manufacturers. In addition to this rise in number of dealers in the past three years, the technology became more and more mature with an increased diversity in applications and uses of solar thermal technology. This has also been shown with the development of the evacuated tube technology which rose from being offered by only a few companies in 2005 to being offered by more than 70% of the companies in 2008. This is associated with the huge penetration of Chinese‐made products that reached a very high share in 2008; almost double that of 2005. The companies’ intention to build a better platform and increase market penetration was not met due to several factors such as the lack of publicity and the unstable political situation in the country. This requires action from concerned parties to provide technical and awareness support, and subsidize this market in both direct and indirect ways. In addition the cost of solar water heating in Lebanon remains high with an average cost of 9 USD per liter of storage compared to 7 USD in Greece and 11 USD in Italy
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About the LCEC
The Lebanese Center for Energy Conservation (LCEC) is the national energy agency catering for energy efficiency and renewable energy (EE and RE) in Lebanon. LCEC has succeeded in establishing itself as a technical point of reference specialized in energy conservation issues within the Lebanese Ministry of Energy and Water (MEW). LCEC has been operating since 2002 and more actively since 2005 on a project basis financed by the Global Environment Facility (GEF) and the Ministry of Energy Water (MEW), in addition to other bilateral donors, under the direct management of the United Nations Development Programme (UNDP). LCEC has developed energy efficiency standards and labels for some household appliances (in cooperation with Libnor and IRI), helped in the creation and support of Energy Services Companies (ESCOs) which were able to conduct LCEC‐funded energy audits for companies and institutions. As a matter of fact, LCEC supervised more than 100 audits, including major sites like Beirut International Airport, Casino du Liban, and Hotel Dieu de France. The business leveraged in this field is expected to be more than 20 million USD. LCEC helped as well in the installation of solar panels donated by different international funds. On the communication front, LCEC launched a multitude of awareness campaigns, namely “some turn‐offs do save”, “don’t burn your money to heat water, solar energy is for free”, and “save the energy and keep the light”; in addition to tactical campaigns targeting industries, university and school students, and many others. LCEC established successful partnerships with MEW, Electricité du Liban (EDL) and local power companies, the Industrial Research Institute (IRI), the Council for Development and Reconstruction (CDR), and the Order of Engineers and Architects in Beirut (OEA). Recently, LCEC and Kafalat signed a cooperation agreement to provide interest rate subsidies for energy efficiency projects. LCEC is a founding member representing Lebanon in the Regional Center for Energy Conservation and Renewable Energy (RCREEE). LCEC is the national focal point for different EU‐funded projects like MED‐ENEC and MED‐EMIP. LCEC is also establishing a solid platform to become the national counterpart for the upcoming Mediterranean Solar Plan (MSP). The role of LCEC is growing with extended responsibilities in energy audits, financial incentive schemes, standards and labeling, promoting the use of renewable, national energy database, and the promotion of the Clean Development Mechanism (CDM) for carbon off‐sets.
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The New GEF Global Solar Water Heaters Initiative
The Lebanese Center for Energy Conservation (LCEC) recently launched a new initiative entitled “developing the solar water heaters market in Lebanon”. The initiative is based on the GEF‐funded project “global solar water heaters market transformation and strengthening initiative” covering six countries worldwide, including Lebanon. The UNDP‐managed project aims at accelerating the market development of solar water heating in Lebanon with an objective to facilitate the installation of 190,000 m2 of new installed collector area over the period 2009‐2014, an annual sale of 50,000 m2 reached by the year 2014, and most importantly lay the foundation for an expected continuing growth to reach the set target of 1,050,000 m2 of total installed solar water heaters capacity by 2020. In terms of energy savings, this has been estimated to correspond to over 1,000,000 MWh of avoided new fossil fuel power capacity by using solar instead of electricity for water heating, and estimated cumulative greenhouse gas reduction potential of over 3 million tons of CO2 by the end of 2020.
Figure 1: Estimated current and future solar installations in Lebanon (2005‐2020)
The initiative will be developed on four levels: establishing an environment at the policy and financial levels for the promotion of solar water heating in Lebanon; raising awareness and
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increasing information about the marketing; implementing pilot projects and setting up certification and quality control schemes. All the activities will be captured and reported as lessons learnt and future needs. The success of the initiative will be measured through the adoption of a national system for adequate product standards, labeling and quality control scheme (harmonized with international schemes); the enhanced capacity of the supply chain to offer their products and services and verified customer satisfaction; and the adoption of financial incentives and legislative reforms and the creation of a solar fund. With a total budget of 1.1 million USD, the main partners of the initiative are the Ministry of Energy and Water, the Ministry of Finance, the Order of Engineers and Architects, the UNDP Country energy efficiency and renewable energy demonstration project for the recovery of Lebanon project CEDRO, the Lebanese Solar Energy Society, and many others. Through the good alignment of efforts, LCEC hopes the initiative will be able to leverage at least 50 to 100 million USD (about 50% to 100% of the total investments needs) over the period 2009‐2014.
Figure 2: Alignment of efforts to leverage at least 50 to 100 million USD
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Introduction
As a milestone step in the New GEF Global Solar Water Heaters Initiative, the Lebanese Center for Energy Conservation (LCEC) initiated a study in 2006 on the Lebanese solar thermal market in collaboration with the Lebanese Solar Energy Society (LSES). The study aimed at reviewing the solar thermal supply market status and evolution. LCEC then repeated the study 2 years later to witness promising market development. The study carried out in 2008, in collaboration with IPSOS‐Stat, a market research and statistics company, show progress in the Lebanese solar thermal market. This report includes comprehensive analyses extracted from both surveys leading to results summarizing the market development in the past decade. The parameters of the study characterized market development in terms of market size, products specifications, and fields of activity, in addition to the obstacles and possible solutions to push the market forward. The study aimed to quantify the installed capacity and size of the Lebanese market. This was not achievable due to the lack of information provided by the companies on annual production and installation. To fill this gap, detailed information quantifying the annual installed capacity over the Lebanese territories should be gathered. LCEC will devote efforts to complete this exercise with the missing data to produce a clear market analysis study. LCEC would like to acknowledge the support of the Lebanese Solar Energy Society (LSES) in the completion of the first survey in 2006. LCEC would also like to thank all the Lebanese companies (listed in Annex B1 and B2) that cooperated with LSES and IPSOS‐Stat by filling the questionnaires and disclosing the needed information. It is important to note that this report reflects the responses of the companies as provided but does not necessarily reflect the actual market status. LCEC is sure that the publication of this study will be a one step forward in a very long journey. LCEC is keen to develop a strong market for solar water heaters in Lebanon. This can only be possible with the participation of all stakeholders. LCEC Team.
Beirut, March 2010
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Survey Procedure
Survey Methodology
The study was carried out through in‐depth interviews with local companies producing or supplying solar thermal systems. Most of the solar companies were interviewed using a fully structured 30 minute questionnaire (Appendices A.1 and A.2). Only four companies were interviewed over the telephone. Phase 1 of the study was completed in year 2006 in collaboration with the Lebanese Solar Energy Society (LSES), and included 22 companies covering 70% of the total solar thermal companies operating in Lebanon. Phase 2 was launched and completed in year 2008 in collaboration with IPSOS‐Stat, and included 34 local companies which constitute 80% of total companies operating in Lebanon. With no specific selection criteria adapted, a total of 37 local companies were involved in this study in both phases. Three of the companies involved in the first phase chose not to participate in the second phase but declared that they are still in business. Table 1 provides a brief description of the two phases in this market study.
Table 1: Solar Market Survey Information (Phases 1 & 2)
Phase 1 Phase 2
Year conducted 2006 2008
In collaboration with LSES Stat IPSOS
Solar companies involved 22 34
In Common 19
Date 15 July – 15 September 29 April – 24 May
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Survey Questionnaire
During the first phase, LCEC & LSES prepared a standard multiple‐choice questionnaire to be used for data collection. During the Phase2, LCEC modified the questionnaire to enable the collection of more information. Appendix A contains the two questionnaires used in this study in its two phases. The questionnaire consists of seven major sections as shown below.
1. Company profile: This section provides information about the company, including business activity, branches, contacts, etc.
2. Proposed equipment: This section provides information on the equipment used in solar thermal systems including types, sizes, specifications, warranty, etc.
3. Range of applications: This section presents the main solar thermal applications used, with their users, shares, distribution, etc.
4. Equipment brand name and origin: This section presents the origin and brand name of equipment used for both solar panels and storage tanks.
5. Level of technicalities: This section provides the level of technicality in the market; it tackles the testing methodologies, the standards followed and the technical personnel in business.
6. Production: This section provides an idea on the company’s production through the years; it also discusses the distribution into internal market use and import.
7. Problems and solutions: This section summarizes the problems and obstacles facing the companies with suggested solutions for market development.
Survey Interpretation
The first phase was completed by the year 2006; the data was collected, treated and interpreted. Phase 2 was accomplished in 2008; the data was collected and added to the results of Phase 1 study. The final result is a comprehensive output summarizing the status and evolution of the local solar thermal supply market in the past few years.
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Survey Results
The results of the surveys are presented as collected and basically analyzed without deeply analyzing the market transformation. It should be noted that the modification made to the questionnaire in Phase 2 lead to enhanced detailed results but prevented exact comparison in certain cases addressed in the analysis. Companies Profiles
The results of the survey showed a steady increase in the number of solar thermal dealers from 1980 to 2000 with a more rapid increase observed from 2000 to 2008. Figure 3 shows the number of solar thermal dealers in Lebanon from 1980 to 2008 with the type of activity for each.
S: supplier, M: Manufacturer, MS: Manufacturer &Supplier
Figure 3: Solar thermal companies in business
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Of the 37 companies involved by the end of 2007, only 14 manufacture their products locally, seven of which simultaneously supply imported products. The remaining 23 import the product and perform as suppliers. Only four companies were fully dedicated to the solar thermal business. In other words, nearly 90 percent of the solar thermal companies in the market provide other services and goods in line with their solar activity. The majority of them provide plumbing, water treatment, heating and cooling, and other services. The survey shows that 23 companies out of the 37 are suppliers, while the rest are manufacturers and suppliers. The activity distribution for the 37 companies involved in the two phases of our study is shown in Figure 4.
Figure 4: Type of activity distribution As for regional distribution, Beirut has the largest share hosting more than 50% of the solar thermal companies in Lebanon; the remaining companies are variably distributed between the South, the North, Mount Lebanon, and the Bekaa. The regional distribution for the 37 companies is shown in Figure 5. The regions are classified according to IPSOS‐Stat Standards.
Figure 5: Regional distribution1
1 “Beirut E” includes areas in Baabda, Hazmieh, Mansourieh, Jdeideh, etc…
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Proposed Equipment
1. Solar Collectors Solar collectors come in different types for applications. The survey results show more than three varieties of solar panels used in the local market. The use of flat plate collectors is still the most common, followed by evacuated tubes technology. However, the latter has shown increased penetration during the past two years as shown in the figure below. Figures 6 and 7 show, in number of companies, the distribution of solar panels by type for each phase (22 responses in Phase 1, and 34 responses in Phase 2)
Figure 6: Solar panel distribution by type for Phase 1
Figure 7: Solar panel distribution by type for Phase 2
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Each type of solar collector comes with different models and techniques of operation. The results extracted from this survey show a difference in the specifications of the collectors used. All evacuated tube collector products are silica evacuated tubes. However, for the flat plate collectors several metallic materials and selective surfaces are being used. Figure 8 shows, in number of companies, the distribution of solar panels by model in Phase 2 (for 34 responses). This aspect was not included in Phase 1, so the data presented does not include information about the previous status.
Figure 8: Solar panels distribution by model for Phase 2 2. Storage Tanks The most popular tank size meets the average Lebanese family size, which usually consists of five members, thus requiring an average of 200 liters of hot water per day. The study showed that the most popular tank size in the Lebanese market is in the range of 100 to 300 liters. This is most probably because the average Lebanese family of 5 members requires 200 liters of hot water per day. Figures 9 and 10 show, in number of companies, the storage tank distribution by size in liters for the 22 responses in Phases 1 and the 34 responses in Phase 2.
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Figure 9: Storage tank distribution by size for Phase 1
Figure 10: Storage tank distribution by size for Phase 2
As for the tank material there was also diversity in the types found on the market. The extracted figures show that most of the storage tanks are imported Tank manufacturing is also available but in a shy manner. Figure 11 shows, in number of companies, the storage tanks distribution by material in the second phase of the survey. Phase 1 did not contain any information about the material used, thus the analysis figure is conducted for Phase 2 only, with 34 responses from the 34 companies.
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Figure 11: Storage tanks distribution by material for Phase 1 Another specification of the tank is its insulation which plays a significant role in storing thermal energy and minimizing thermal losses. The most common insulation materials used are polyurethane and fiber glass. In general, foam is sometimes used but avoided due to its flammable nature. Similarly, Figure 12 shows, in number of companies, the distribution of storage tanks by insulation material used in the Phase 2 of the survey. Phase 1 did not contain any information about the insulation material thus the analysis is only conducted from 34 companies answering the questions in Phase 2.
Figure 12: Storage tank distribution by insulation for Phase 1
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3. Related Equipment In addition to the previously mentioned equipment, local solar thermal energy dealers offer other essential and nonessential materials. This varies depending on the application itself and the customer’s requirements. This definitely affects the final cost of the system. Figure 11 below shows the number of companies offering the major accessories used in solar thermal applications including thermometers, flow meters, air vents, pressure relief valves, and expansion tanks.
Figure 13: Number of companies offering the additional equipment to customers
The offered equipment is installed as per agreement with the customer, and not all customers normally demand the same equipment, which could be best illustrated in Figure 14 that shows the highest percentage of installation is for air vents and pressure relief valves that are highly recommended for safety and proper operation of the system. Note that the percentages shown in the following figure describe the average percentage of customers requiring each item. In other words, the dealer was asked to provide the percentage of customers requiring each item, the average of all answers by 34 dealers was calculated for each item and presented in the figure below. Note: The values provided only do not take into account the market penetration of each company. The assumption is that all companies have the same effect in the market.
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Figure 14: Percentage of additional equipment offered to customers
4. Business and Selling Almost all interviewed companies guarantee their products after installation and provide the customer with a signed warranty. The warranty applies to the items manufactured, supplied and installed by the company consisting predominantly of solar collectors and storage tanks. However, warranties may vary by product and by company. Out of the 34 solar companies participating in the second phase of the survey, 32 claim that they provide warranties for the solar panels supplied ranging from one to 15 years, with an average of 4.9 years. For the storage tanks, 27 of the 37 companies claim to offer warranties. The warranties provided range from one to 10 years, making an average of 4.2 years. This survey shows that several companies provide warranties on some of their products, with certain restrictions on other products especially non‐pressurized systems. These items are mainly sold and installed without any guarantee or warranty as per agreement with the customer prior to installation. Figures 15 and 16 below show, in number of companies, the warranty offered in years by the solar companies for supplied solar panels and the storage tanks respectively. Note that this aspect was not included in Phase 1 and the results shown are only derived from Phase 2 of the survey.
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Figure 15: Solar panel warranties in years
With an average cost that ranges from 5 to 12 USD per liter for residential solar water heating applications, the type of selling differs and varies according to the customer’s convenience. The survey shows four types of payment modalities are used. The most common type is in cash followed by bank loans. Some companies offer personal loans with no need to bank guarantees, and some offer quarterly payments allowing the costumer to pay on 3 or 4 payments. Figure 17 provides the common methods of payment currently used and the number of companies offering each type.
Figure 16: Storage tank warranties in years
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Figure 17: Common types of payment
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Range of Application
1. Application types Thermosiphon is the most common application used for individual residential applications; this system does not require pumps or driving motors to operate. Another application is the forced circulation, where pumps are needed to circulate the fluid as part of the system’s operation. The least common technique is the integral storage, which is used in a very limited manner following the traditional batch heating technique. In this study no major changes occurred between the two phases. Thermosiphon remains the most popular application installed, followed by forced circulation systems for domestic water heating (FDWH). Figures 18 and 19 show the variation of applications in both phases.
Figure 18: Range of Applications Distribution in Phase 1
Figure 19: Range of applications distribution in Phase 2
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Note: The values provided only give a general idea without taking into account the market penetration of each company, but treating all companies equally as if they have the same effect in the market. Figures 20 and 21 show the number of companies offering the applications mentioned for both phases (out of the 22 companies in Phase 1 and 34 in Phase 2) .
Figure 20: Companies offering the various applications in Phase 1
Figure 21: Companies offering the various applications in Phase 2
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2. Application Area The application area defines the collection size and thus the capacity of the solar water heating system. The bigger the collection area, the faster water is heated given the same storage volume. In Phase 1 the application size was divided into four categories, while in Phase 2 it was expanded to six categories in order to improve the accuracy of the data. The following table shows the categories used in both phases and their relative number of panels.
Table 2: Categories Used for Application Area in Phases 1 and 2
Phase 1 Phase 2
Category Number of Panels Category Number of Panels
Less than 6 m2 0 – 3 Less than 4 m2 2
7 m2 to 20 m2 4 – 10 4 m2 to 10 m2 3 – 5
21 m2 to 100 m2 11 – 50 11 m2 to 20 m2 6 ‐ 10
More than 100 m2 > 50 21 m2 to 50 m2 11 – 25
51 m2 to 100 m2 26 – 50
More than 100 m2 > 50
The results revealed a high percentage of small‐area applications in both phases, which again meets the international standards for small family residences. This is likely due to the fact that small applications are mostly associated with small individual uses mainly for residences. The results are illustrated in Figures 22 and 23. It must be noted that the percentages shown give the average value of all percentages provided by dealers for each application. Note: The values provided only give a general idea without taking into account the market penetration of each company, but treating all companies equally as if they have the same effect in the market.
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Figure 22: Application area (in m2) distribution in Phase 1
Figure 23: Application area (in m2) distribution in Phase 2 More details about the number of companies installing/using each application are shown in the following figures.
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Figure 24: Companies performing the various areas of applications in Phase 1
Figure 25: Companies performing the various areas of applications in Phase 2 3. Users Solar thermal applications are used for different purpose; they are mainly installed in residential buildings, individual homes, retails, large commercials, and industries. In this survey, the companies were asked about the share of each category in annual business. The above categories were all listed in the two phases with two additional categories in Phase 2; whole retails and services.
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Earlier in this study, while studying the scale of applications, it has been shown that the most common category among solar thermal applications is small‐area applications that are mainly used for individual residential uses. While studying the end use share, individual residential uses have been shown to have the highest share as seen in Figures 26 and 275. Note: The values provided only give a general idea without taking into account the market penetration of each company, but treating all companies equally as if they have the same effect in the market.
Figure 26: Solar thermal application distribution in Phase 1
Figure 27: Solar thermal application distribution in Phase 2
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These percentages were collected from 22 companies in Phase 1 and 34 in Phase 2. The number of companies serving the provided categories of users is shown in the Figures 28 and 29.
Figure 28: Number of companies and solar thermal applications in Phase 1
Figure 29: Number of companies and solar thermal applications in Phase 2
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Equipment Brand Name and Origin
1. Solar Collector The major item in a solar thermal system is the solar collector, which is of high importance due to its purpose in collecting the solar radiations and converting them to useful energy. The survey studied the types and makes of solar collectors among the 37 companies in the two phases. Obvious changes throughout the years in shares and origins were observed. The results showed that the Lebanese products remain the most common products in both phases of the study. In Phase 1 the dealer was asked about the solar collector in general without differentiation between the types of collectors. In Phase 2 the method was more specific, and thus addressed flat plate and evacuated tube collectors separately. As shown in Figure 30, Lebanese‐made solar panels were most common in 2005 with an average percentage of 30% as answered by the 22 companies
Figure 30: Solar panels country of origin Phase 1
In 2008 it was shown that the Lebanese‐made products are still leading in flat plate collectors sharing with the Turkish‐made products around 50% as an average percentage of the 34 answers. While for evacuated tube collectors, Chinese‐made products alone make up around 50%. The results are shown in Figures 31 and 32
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Figure 31: Flat plate collectors country of origin Phase 2
Figure 32: Evacuated tube collectors country of origin Phase 2
Note: The values provided only give a general idea without taking into account the market penetration of each company, but treating all companies equally as if they have the same effect in the market. 2. Storage Tank The same assessment was undertaken for storage tanks with similar results in both phases except that the Chinese‐made storage tanks had a higher share that reached 60%. Figure 31 shows the country of origin of storage tanks in Phase 1.
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Figure 33: Storage tanks country of origin Phase 1 In Phase 2 of the survey storage tanks were classified into flat plate and evacuated tube storage tanks. Figure 32 shows that the majority of flat plate storage tanks originated from Lebanon and Turkey, with a combined share of 66%. Meanwhile, 60% of evacuated tube storage tanks were found to be Chinese‐made, as shown in Figure 33.
Figure 34: Flat plate storage tanks by country of origin Phase 2
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Figure 35: Evacuated storage tanks by country of origin Phase 2
Note: The values provided only give a general idea without taking into account the market penetration of each company, but treating all companies equally as if they have the same effect in the market.
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Level of Technicalities
1. Testing Facilities An important issue in the local market is the quality of manufactured items. To insure good quality, the product should be subject to several testing measures to prove eligibility and reliability. The survey, in its two phases, has shown a lack of technical facilities used to guarantee the adequacy of the manufactured product. The technical tests of concern are: ‐ Visual test: visual inspection to check system’s good condition ‐ Pressure test: tests the equipment at a required pressure to check for leakage and weaknesses. ‐ Thermal performance test: tests the thermal performance of the equipment to construct the efficiency curve. ‐ Wind resistance test: tests the system against heavy wind. ‐ Freeze resistance test: tests the system’s ability to withstand freezing weather and very low temperatures. This section concerns manufacturers only. Figures 36 and 37 show, in number of companies, the results of the claims provided by the eight manufacturers in Phase 1 and eleven manufacturers in Phase 2 on the tests and examinations they perform during the manufacturing process..
Figure 36: Testing facilities for manufacturers Phase 1
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Figure 37: Testing facilities for manufacturers Phase 2 2. Technical Personnel Another indication of the level of technicality is the number of dedicated personnel working and their technical know‐how. The study surveyed the technical personnel working within the solar thermal companies including engineers, technicians, and skilled laborers. During Phase 1 the companies were asked whether they have hired engineers, technicians, and skilled laborers to undergo specific tasks in this domain. In the second phase, the number of personnel in each category was also collected. The results show some development in this respect, but since Phase 1 covered 22 companies and Phase 2 covered 34 companies, this comparison is not very precise. Figures 38 and 39 show the results extracted from both phases of the survey comparing suppliers against manufacturers in terms of engineers, technicians, and skilled labor hired. The results below are expressed as percentages showing the proportion of companies having the indicated type of employees. Phase 1 included 14 suppliers and eight manufacturers, whereas Phase 2 included 23 suppliers and 11 manufacturers.
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Figure 38: Technical personnel percentage: suppliers vs. manufacturers for Phase 1
Figure 39: Technical personnel percentage: suppliers vs. manufacturers for Phase 2
Furthermore, calculating the average number of hired employees per company demonstrates that there are more laborers in manufacturing companies than in suppliers, but almost the same average number of engineers in both, as shown by the results presented in Figure 40.
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Figure 40: Average technical personnel for suppliers vs. manufacturers for Phase 2 3. Applicable Standards In accordance with the quality control process, applying standards to the product plays an important role in ensuring good quality. For this purpose, different types of standards are recommended and have to be applied. The standards should be applied on: ‐ Raw material: applied to the raw material used in building and fabricating the product. ‐ Fabrication process: applied during the manufacturing of the product ‐ Finished product: applied to the final product to be supplied to the market. Figure 41 compares 34 manufacturers and suppliers from Phase 2 of the survey in terms of applying the required standards to the products. Note: The values provided only give a general idea without taking into account the market penetration of each company, but treating all companies equally as if they have the same effect in the market.
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Figure 41: Applicable standards: suppliers vs. manufacturers for Phase 2
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Conclusions and Recommendations
Comparison with International Markets
In the core of evaluating the local market in its various forms, the results were compared to other international markets all over the world, and cost and qualitative comparisons were preformed. With the residential sector sharing more than 70% of the solar water heating market, a cost comparison was done for the typical residential systems cost in five countries, Japan, Italy, Lebanon, Tunisia, Spain, and Greece. The typical and most used solar water heater size is 200 liters with a collection area of around 2 m2. The average cost ranges from 1,000 to 2,500 USD excluding installation and commissioning costs. The average cost is 9 USD per liter equivalent to 450 USD per meter squared of collection area. Table 3 compares the residential domestic solar hot water prices among different countries including GDP comparison.
Table 3: Comparison of International Domestic Solar Hot Water Prices
Country Typical System GDP capita Cost (USD) Cost/liter Cost/m2 Cost: GDP
Japan 200 liters – 4m2 $35,300 $2,990 $15 $748 8.47%
Italy 200 liters – 4m2 $31,000 $2,000 $10.3 $515 6.45%
Lebanon 200 liters – 4m2 $11,100 $1,800 $9 $450 16.22%
Tunisia 200 liters – 3 m2 $8,000 $1,600 $8 $533 20.00%
Spain 200 liters – 2m2 $34,100 $1,470 $7.4 $735 4.31%
Greece 150 liters – 2.4m2 $32,800 $1,040 $6.9 $434 3.17%
In qualitative comparison, a general comparison with international markets was done relating the solar water heating systems and the solar thermal applications in Lebanon to other locations.
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Table 4 provides the comparison with other regions around world using market penetration levels from A to D, A being major penetration and D being rare penetration.
Table 4: Qualitative Comparison with Similar Solar Thermal Systems
Solar thermal Systems Types & Applications Lebanon
Near‐east Arab Countries
Maghreb Countries
Southern Europe Countries
Northern Europe Countries
North America & Australia China
Solar Collectors Flat plate A A A A A A C
Evacuated tubes A D D D C D A
Unglazed for pool D D D B B A D Integral collector‐storage D D D D D D D
Hot Water Tanks Up to 200 liters A A A A A A A Between 201 & 300 liters A A A A A A A Between 301 & 400 liters D B B A A A C Between 401 & 500 liters C B B A A A C Above 501 liters C C B A A A C
Complete Factory Made Closed Thermosiphon for HW
A A A A C A A
Open Thermosiphon for HW A A B B C B A Integral collector‐storage D D D D D D D Package forced circulation D D D C B C D
Application Type Thermosiphon for HW A A A A C A A Integral collector‐storage HW
D D D D D D D
Forced circulation for HW B B B B A A B Forced for pool heating C C C B B A D Forced for space heating D D D C B B D
Application Size Less than 6 m2 collectors A A A A A A A Between 7m2 and 20 m2 B B B A A A A Between 21m2 and 100 m2 C C B A A A A Above 100 m2 C C B A A A A
Users Residential buildings C C C B B C A Residential individual A A A A A A A Retails C C C C C C C
Large commercial C C B B B B A
Industrial D D D B B C C
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Obstacles and Complaints of the Dealers
The local companies were asked what they considered to be the obstacles facing the solar thermal market and causing low business penetration. The major complaint was the financial situation. 35% of the companies considered financial problems the major barrier affecting the growth of business. This is related to the cost of the solar water heating system to the national individual income as shown in Table 3. Other obstacles were the lack of publicity as well as the lack of awareness among customers. The full results from the second and latest version of the survey are shown in Figure 42 below.
Figure 42: Obstacles and barriers facing the solar thermal market
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Recommendations
In looking for possible ways to help ameliorate the obstacles facing the solar thermal market, the local companies and dealers were asked to propose their own solutions that they thought would help in promoting the solar water heating business in Lebanon. Most of the local companies identified financial incentives as the primary solution, making up 44% of the proposed solutions. This may include tax reduction, bank guarantees, price reduction, and improving the cost of living. The full results from the second survey are shown in Figure 43.
2%
2%
4%
4%
4%
6%
8%
12%
12%
22%
24%
No solution
Improving the costs of living
Introducing the system to the public
Finding specified places for the system
Political stability
Price reduction
Put high standards
Laws that allow the installation of solar systems
Banks providing loans for solar system installation
Co‐oporate with tv for publicity / promotion
Financial help ( tax deduction / removal)
Figure 43: Proposed solutions for removal of barriers to solar thermal market With only 2% of the answers going to “No solution”, the solar thermal market in Lebanon is slowly improving but not considered a hopeless situation. This study has shown good potential for solar water heating in Lebanon with some obstacles that can be overcome with the effort of several stakeholders from the public and private sectors.
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Appendices
Appendix A: A.1: Survey Questionnaire of Phase 1 A.2: Survey Questionnaire of Phase 2 Appendix B: B.1: List of Surveyed Companies in Phase 1 B.2: List of Surveyed Companies in Phase 2
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A.1: Survey Questionnaire of Phase 1
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A.2: Survey Questionnaire of Phase 2
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B.1: List of Surveyed Companies in Phase 1
1. Adel Bou Habib & Co 2. Adib Bahnam 3. Al Bina 4. Al Mawared Construction EST 5. Aquatherma Engineering 6. Aton 7. Dawtec 8. Debbas Entreprise 9. Fakih 10. Falcon Win Trading 11. Ghaddar Trade & Industry (Sunfire) 12. Kypros 13. Middle East Scandenavian Marketing Office (Zreik) 14. Ray Solar Energy 15. Saadeddine 16. Sky Energies 17. Solar Power 18. Solarnet 19. Soltech 20. Sunco (ex Lseco) 21. Tfaily Solar Energy (Sunshine) 22. Webco/Cesl division
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B.2: List of Surveyed Companies in Phase 2
1. Adel Bou Habib & Co 2. Al Mawared Construction EST 3. Al Bina 4. Aquatherma 5. Aton 6. Axiome 7. Barake Industrial 8. Dawtec 9. Debbas Enterprise 10. DPC Lebanon SARL (Alternative Energy) 11. Energy Lebanon 12. Fakih 13. Fayez Abou El Sheikh 14. Ghaddar Trading and Insustry 15. GMG 16. Great Solar System 17. Habibs Group 18. Hada Tech 19. Luxe Fine 20. Nakkouzi 21. Nour – Kypros 22. Ray Solar Energy 23. Red Tops 24. Saad El Dine EST 25. Sader Establishment 26. Sawan Solar System 27. Sky Energies 28. Sol Tech Company 29. Solar Power 30. Solarnet 31. Sun Island 32. Tfayle for Solar / Sunshine 33. Zreik Technical Center