Incentives to using solar thermal energy in Taiwan

A national subsidy program is one of the key elements for translating customer choice into a larger market share for renewable energies. Since solar water heaters (SWHs) are a cost-effective and mature technology, purchase-based subsidy programs have been sponsored by the Bureau of Energy, Ministry of Economic Affairs (BEMOEA) in Taiwan. The market of SWHs is associated with economic factors, population characteristics, degree of urbanization (available roof space), and climatic conditions. Regional programs have also affected the growth in sales. However, the penetration rates are still low, and the local market has changed little in recent years. Thus, the timing of the termination of the long-duration subsidy program is a subject of debate. In this study, a new scheme in the residential sector is proposed in the period of 2016 to 2019. In addition, small and medium enterprises (SMEs) make up the majority of Taiwanese companies. Most SMEs suffer from insufficient capital to support their commercial activities. To prompt solar thermal energy in the commercial sector, the energy service company (ESCO) business model can be adopted. The same feed-in tariffs for PV systems can be granted for SWHs and photovoltaic/thermal (PVT) systems with performance-based subsidies to end users or ESCOs.