SOLAR THERMAL MARKETS in EUROPE Trends and Market Statistics 2014 J U N E 2 015 Solar Thermal Markets in Europe Trends and Market Statistics 2014

Home , Solar thermal collector

SOLAR THERMAL MARKETS IN EUROPE Trends and Market Statistics 2014 J u n e 2 015 Solar Thermal Markets in Europe Trends and Market Statistics 2014

TABLE OF CONTENTS

Editorial, Robin M. Welling, ESTIF President...... 3

What have we achieved for the European solar thermal industry in 2014?...... 3

FROnT project...... 4

Solar thermal markets in EU 28 and Switzerland (glazed collectors)...... 5

Germany, the leader and main driver of the European market...... 5

Other solar thermal markets above 35 MWth newly installed capacity

Greece...... 6

Italy...... 6

Poland...... 7

Spain...... 7

Denmark...... 7

Austria...... 8

France...... 8

Switzerland...... 8

Belgium...... 9

Portugal...... 9

Detachable map: Solar thermal markets in Europe...... 10

Labelpack A+/ Energy Labelling...... 12 Market size in terms of solar thermal capacity (KWth) and in terms of collector area (m²)...... 13

Country focus: Turkey...... 14

Major market trends (ISOL)...... 15

Solar thermal, the versatile technology: three examples of applications...... 16

2020 targets: a Bermuda Triangle of Lost Opportunities?...... 18

This publication is printed on recycled paper

Disclaimer: Please note that all figures presented in this brochure European Solar Thermal Industry Federation (ESTIF) reflect ESTIF knowledge at the time of publication. Place du Champ de Mars 2, B-1050 Brussels For some countries, the data provided are only ESTIF estimations. Tel : +32 (0) 2 318 40 60 Pictures © Austria Solar/AEE INTEC and Ritter XL Solar GmbH [email protected] www.estif.org

2 Solar Thermal Markets in Europe Trends and Market Statistics 2014

EDITORIAL: ROBIN M. WELLING ESTIF PRESIDENT

he best way to describe the situation in the European solar thermal We all know by now that the market is changing. We see that the traditional market is that we are not on track to realize the industry potential. residential market – single-family houses – is suffering the most, while the multi-family In particular, we are not on track towards 2020, as the current housing segment is behaving better. And we can see positive developments for the performance of the sector is not strong enough to achieve the commercial, industrial and district heating applications. These segments are still too indicative solar thermal targets proposed by the EU Member small compared with the residential market, although their growth in such a short TTStates in the National Renewable Energy Action Plans (NREAPs). period has confirmed their potential. In fact, the market results in 2014 are once again disappointing, with a decrease of This transformation in the market is echoed in the results of the ISOL business around 7%. Even if in some countries the results were better than expected, with a Index, reflecting the mood of the industry. We can also see the relevance of the few markets growing, actually the European market continues to decline due to a commercial and industrial applications with the creation of new support mechanisms sharp slowdown in the construction sector in the main markets, particularly in the put in place by some countries for such applications, as is the case in Germany German market, which has contracted by 12%. with solar heat for industrial processes. We address these market segments in this publication in more detail: solar cooling, solar heat for industrial processes The European Commission launched the Renewables Progress Report, which and solar district heating. We can see that the solar district heating success story shows that the 2020 indicative targets for solar thermal, reflected in the NREAPs, continues with its expansion reaching beyond Denmark. Yet the Danes are not are likely to be missed by 41% - 45%. This is not news for our industry: since the standing still and are looking into new large solar district heating plants, adding to

adoption of the Renewables Directive in 2009, our sector has felt the effects of their impressive 390 MWth of installed capacity in such systems. both the financial and economic crises, competition from other renewable energy sources benefitting from extremely attractive support mechanisms and the impact Times are changing and players in the sector need to work together to find how of low fossil fuel prices. we can steer our sector towards better opportunities. In that regard I must also acknowledge the work that solar thermal trade associations are doing at national Within the solar heating and cooling industry we have been addressing these issues, level. Without naming them, they are pushing industry into looking for new strategies, trying to bring new answers to meet these challenges. But we need to work with new ideas for the sector, while defending the industry’s interests. Of course, their public authorities if we want an integrated and effective response that can also help work is never enough, there is always more to be done to turn the market around. to stay on the right path for 2020. The European Commission is now directing its All the same, their work is invaluable and deserves our appreciation and support. attention also to the heating and cooling sector and a heating and cooling We also count on their cooperation within ESTIF as a way to engage with national strategy is expected by the end of 2015. The solar thermal sector has a significant industry in the important discussions about the sector’s future. role to play and is willing to play its part. We deal with this issue further in this publication. In spite of an overall disappointing scenario, there are still some This edition of “Solar Thermal Markets in Europe” provides an overview of the positive news from the market. The Greek market is now growing again, European market, a short analysis of the main markets, a summary of market trends driven by solar water heating investments in the tourism sector. There is still a and an analysis of the situation regarding the 2020 targets. It also includes a short great potential in these applications and it is good to see that exploring such overview of the developments in market segments such as solar cooling, solar heat opportunities is bringing the Greek market into “green”. Another interesting for industrial processes and solar district heating, a more detailed analysis on Turkey, example coming from the South is that of Andalusia. This Spanish region, with a the largest market in Europe and the host of the SHC 2015 conference. Finally, it

population of 8.5 million, reached a market size of about 60 MWth (85 700 m²), also draws your attention to European initiatives led by ESTIF, on energy labelling while the rest of the Spanish market still feels the effect of the economic slowdown. (Labelpack A+) and on Fair RES heating and cooling Options and Trade (FROnT). The achievements in this region demonstrate the impact that industry initiative, We hope this provides you with a good insight into our sector, the challenges it supported by public authorities, can have on the development of the market. faces but also its potential. We would like to see such cooperation extended to other parts of Europe. Good reading and sunny regards,

Robin M. Welling

WHAT HAVE WE ACHIEVED FOR THE EUROPEAN SOLAR THERMAL INDUSTRY IN 2014?

ESTIF Intensified its collaboration ESTIF Continued maximizing the positive ESTIF Kicked-off the coordination with other associations from the impact of the introduction of the package of the EU co-financed project renewable heating sector to ensure label and supporting its members for a “Fair RES-H&C Options and Trade”, a clear recognition of heating and smooth implementation of the energy with the objective to promote a level cooling issues, to pave the way for an labelling regulations. Secured financing from playing field for Renewable Heating adequate 2030 framework for solar the European Commission for a project and Cooling in Europe, and develop heating and cooling, and to propose involving several solar thermal trade strategies for its greater deployment. concrete measures to be included associations to support the market rollout in official legislation documents. of the package label and assist the solar thermal sector in this process – Labelpack A+.

ESTIF Improved its services to members ESTIF Celebrated 10 years of ESTIF Collaborated, once again, with the with new offerings such as weekly policy successful Solar Keymark certification, United Nations Environment Programme briefings, a revamped internal newsletter together with stakeholders from the and its Global Solar Water Heating and a daily presence on twitter with tweets entire Solar Keymark Network, and Development Programme to produce about global happenings in the energy sector. supported the newly created Global a guide for Architects and Builders. Standards and Certification Network.

3 PROMOTING IDENTIFYING SETTING ENHANCING a level Strategic the framework clear and playing field Policy for efficient transparent for Renewable Priorities and effective communication Heating support with European and Cooling schemes for consumers in Europe RHC

Stakeholders from industry and public authorities from During 2015, this project will provide: several EU Member States are involved in this project, • A report giving an evaluation of support schemes for renewable heating and cooling in Europe, including an assessment of key success factors which is led by a consortium gathering representatives • An electronic estimation tool for Levelised costs of Heat (LCoH) from industry and national energy agencies. • A report on customer key purchase criteria in five European countries, The consortium is assisted by partners providing specific following market surveys carried out in these countries • Tools to support end-users’ decisions regarding their heating system expertise on technical issues, business assessment and • An analysis of market outlook, business models & policy instruments communication with consumers. • National consultations with experts from industry, public authorities and other stakeholders.

If you have any questions or suggestions, please get in touch with us - ESTIF is the coordinator of this EU-financed project!

The sole responsibility for the content of this information lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the Co-funded by the Intelligent Energy Europe EASME nor the European Commission are responsible for any use that may be Programme of the European Union made of the information contained therein.

www.solarthermalworld.org Wagner & Co, Cölbe & Co, Wagner

GSTEC Ad_DIN_A5_10_7.indd 1 10/7/2011 11:38:52 AM Solar Thermal Market in Germany 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 15 000 2 500 13 500 2 250 12 000 2 000 10 500 1 750 9 000 1 500 7 500 1 250 6 000 1 000 4 500 750 3 000 500

1 500 250 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Italy 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 2 700 450 2 400 400 2 100 350 1 800 300 1 500 250 1 200 200 900 150 600 100 300 50 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Poland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 2 700 450 2 400 400 2 100 350 1 800 300 1 500 250 1 200 200 900 150 600 100 300 50 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in France 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 2 700 450 2 400 400 2 100 350 1 800 300 1 500 250 1 200 200 900 150 600 100 300 50 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Greece 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 2 700 450 2 400 400 2 100 350 1 800 300 1 500 250 1 200 200 900 150 600 100 300 50 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Spain 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 2 700 450 2 400 400 2 100 350 1 800 300 1 500 250 1 200 200 900 150 600 100 300 50 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Austria 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 2 700 450 2 400 400 2 100 350 1 800 300 1 500 250 1 200 200 900 150 600 100 300 50 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Evolution of European largest markets Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) kWth m2 th th

500 000 350 000 450 000 Solar Thermal Market in Switzerland 2 300 000 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 400 000 1 000 200 250 000 350 000 900 180 300 000 200 000 800 160 250 000 700 140 150 000 200 000 600 120 150 000 100 000 500 100 100 000 400 80 50 000 50 000 300 60 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 200 40 100 20 Italy Spain Austria France Greece Poland 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Newly installed capacity for markets below 105 MW (150 000m2) Solar Thermal Market in Denmark th 2 kWth m2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 140 000 200 000 900 180 180 000 120 000 800 160 160 000 700 140 100 000 140 000 600 120 120 000 80 000 500 100 100 000 60 000 400 80 80 000 300 60 40 000 60 000 200 40 40 000 20 000 100 20 20 000 0 0 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) Portugal Switzerland Denmark Belgium

Solar Thermal Market in Portugal 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 900 180 800 160 700 140 Shares of the European Solar Thermal Market (Newly Installed Capacity) 600 120 500 100 DE 31% Others 400 80 GR 9% PT 300 60 BE IT 9% CH DE PL 9% 200 40 100 20 FR ES 9% DK 6% 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 AT AT 5% 2 FR 5% Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) DK CH 4% BE 2% GR ES PT 2% Solar Thermal Market in Belgium MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) OTHERS 9% th PL IT 1 000 200 900 180 800 160 700 140 600 120 500 100 400 80

2 kWth Development of Main Markets - Newly Installed Capacity per 1000 Capita m 300 60 30 40 200 40 25 35 100 20 30 20 0 0 25 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

15 2 20 Newly installed (MWth) Solar Total Thermal installed Markets n-1 (MW in Europeth) Trends Annual and CapacityMarket Statistics(m ) 2014 10 15 10 5 5 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Solar Thermal Market in Czech Republic 2 SOLAR THERMAL MARKETS IN EU 28 AND SWITZERLANDMWth Total and Newly Installed (GLAZED Capacity (glazed collectors)COLLECTORS) m (x1000) Austria Germany Greece Italy Poland Spain France EU28+ 1 000 200 900 180 n 2014, the European market, once again, underwent a reduction in Market behaviour for larger systems is different. Collective systems for multi-family 800 160 the newly installed capacity. The 2014 market amounted to 2 GWth houses are behaving better than individual systems in most markets, even when 700 140 (approximately 2.9 mio m²). This represents a decrease of 7.1% they have contracted. Large size systems above 35 kWth (50 m²) for commercial in comparison with the previous year. The total installed capacity and600 industrial solar heating and cooling applications are also performing better.120 It registered a net increase of 1.6 GWth, now reaching 31.8 GWth must500 be noted that, for instance, with regard to solar heat for industrial processes,100 (45.4 mio m²). This represents an increase of 5.3% compared with the400 average size of the solar thermal plants has increased. It is estimated that80 it

2 kWth Solarthe Thermal total Capacityinstalled in Operation capacity (per at 1000 the Capita) end of 2013. m evolved300 from an average of 400 kWth (585 m²) between 2000 and 2007 to60 an 1 000 700 average200 close to 1.5 MWth (2 100 m²). This places many of these systems in40 the 900 IThe600 European solar heating and cooling market continues to suffer from the category of very large systems (above 350 kWth / 500 m²) which continues to I 100 20 800 contraction of sales in its largest markets, having reached the same market level grow rapidly, mostly thanks to solar district heating plants in Denmark; however, 500 700 0 0 as in 2007, before the peak year of 2008. There are several main factors behind600 there is2005 clearly2006 some2007 development2008 2009 in other2010 countries2011 2012where 2013more players2014 are 400 500 2 this sluggish performance, such as the low gas prices, difficult access to finance also bringingNewly different installed solutions. (MWth) The Total changes installed n-1in the(MW thpower) market, Annual Capacity including (m ) in the for300 consumers, slow-moving construction sector, less public support schemes400 for support mechanisms for power generation, have created difficulties for combined solar200 thermal and competition from other energy sources, namely those300 with heat and power solutions coupled with district heating networks. This creates 200 more100 attractive market incentives. 100 opportunities for alternatives, namely solar assisted district heating, in particular for

0 CY AT GR DE CH DK MT LU PT EU28+ SI IE ES IT CZ PL BE 0 operation during spring and summer. In 2014 some positive signs have come from two of the largest European markets, Greece and Spain. These markets have grown by 18.9% and 9.8% respectively. This Solar Thermal Market in EU28 and Switzerland 2 evolution is due to greater investments in the tourism sector in Greece and by a MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) good performance in Andalusia, in the case of Spain. These examples show that there 32 500 5 000 are still market development opportunities, if some barriers are effectively tackled. 30 000 4 500 27 500 4 000 25 000 Solar Thermal Market in EU28 and Switzerland (glazed collectors) 22 500 3 500 kW m2 th 20 000 3 000 3 500 000 5 000 000 17 500 2 500 3 000 000 15 000 4 000 000 2 000 12 500 2 500 000 10 000 1 500 3 000 000 2 000 000 7 500 1 000 5 000 1 500 000 2 000 000 500 2 500 1 000 000 0 0 1 000 000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 500 000 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 0 0 th th 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Germany Next top 6 countries (AT, ES, FR, GR, IT, PL) Other 21 EU countries and Switzerland Despite a below potential growth of the total installed capacity, solar heating and cooling still plays an important role in the European energy strategy, allowing As can be observed on the graph above, the last ten years were characterised for decentralised solutions to meet the heating and cooling demand in Europe, by steep growth until 2008, followed since by a contraction. While the average replacing the dependency on imported fossil fuels and creating local jobs. The growth over a 10 year period was 5.6%, the market decrease since 2008 was on 31.8 GWth in operation generate an estimated 24 TWhth of solar thermal energy

average 8.3%, while contributing to a saving of 2.75 Mt CO2. In terms of economic significance, Solar Thermal Market in Turkey 2 theMW thsolarTotal thermal and Newly sector Installed reached Capacity (glazed a combined collectors) turnover of 2 billion euros min (x1000)2014, The single-family housing segment still represents the bulk of the solar thermal 15employing 000 25 000 people. 2 500 System costs 2011 (combisystem 11m2, retail price net for end consumer) market. In some countries there is a trend for smaller average-sized individual 13 500 2 250 installations. Installer:For example, EBITDA 5% the average size of individual systems in Germany 12 000 2 000 is now around 5 m² (3.5 kWth) for domestic hot water systems and 12.5 m² 1 750 Manufacturing costs (collector, store and others)10 25%500 Installer: installation(8.8 administrative kWth) for costs combisystems. 3% 9 000 1 500 Installer: labour costs for installation 8% 7 500 1 250 6% R 1 M LE A 6 000 1 000 AL tion) NU T lla F GERMANY S ta A NEWLY INSTALLED CAPACITY: 630 MWth ANNUAL EVOLUTION 2013/2014: -11.8% IN s C in T 750 ( U 4 500

500 3 3 000

8 )

Germany, the leader andu main driver of the European market

Research & Development 1%

d 250

o 1 500

Installer: EBITDA 29% f Solar Thermal Market in Germany

tumbles even more butR prospects improve

E 2

L Manufacturing: marketing, sales, servicesMW 05%th Total and Newly Installed Capacity (glazed collectors) m (x1000)

A H s

T (

N 2006 2007 2008 2009 2010 2011 2012 2013

E I

A 2 500

15 000

% Manufacturing: management 2% In 2014, the leading European solar thermal market encountered further setbacks Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 13 500 th th 2 250 for the third consecutive year, following a trend initiatedManufacturing: in 2008. EBITDA With 4% only 0.9 mio m², the market has slipped back to 2004 levels and more than halved since 12 000 2 000 WHSLE trade: marketing, sales, services, logistics10 500 8% 1 750 theInstaller: record management year of 1% 2008. In 2014, the total cumulated area grew approximately to 1 500 12.9 GWth (18.4 mio m²). A decrease of 12 % fromWHSLE year trade: to yearmanagement reveals 1% that both 9 000 1 250 the technology andInstaller: the sales market 4% face majorWHSLE difficulties trade: EBITDA in 3%Germany. The average 7 500 size per installed system has continuously decreased to around 5 m² for hot 6 000 1 000 Note: EBITDA = earnings before interest, taxes, depreciation and amortization WHSLE = Wholesale water systems and 12.5 m² for combisystems for one and two family homes. The 4 500 750 Source: ITW, Technomar support for solar combisystems for hot water and space heating, which remained 3 000 500 unchanged until March 2015, proved not to be sufficient to stimulate the market. 1 500 250

Evolution in terms of jobs 0 0 The new support scheme of up to 50 % of the investment costs for solar process 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 heat applications, introduced in August 2012, has so far only resulted in around Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 20020% new installations for systems with an average size of 44 m². Solar process 2013/2012 2014/2013 heat15% remains unknown among the target groups and driven by only a handful of engineers10% and planners for rather simple applications, mainly for the agro-industry Solar Thermal Market in Italy 2 Political:MWth Total Theand Newly focus Installed on electricity Capacity (glazed by thecollectors) “Energiewende” is gradually diminishingm (x1000) and5% car wash facilities. since3 000 the energy transition and climate protection goals cannot be reached with500 0% The final system costs for the consumer remained stable. Although it is not easy the2 700 electricity sector on its own, although this is only dawning on decision makers.450 -5% to clearly identify a single explanation behind the past three years’ decline, some The2 400 support scheme (market incentive programme MAP) as well as the building400 reasons-10% can be identified. obligation2 100 have provided insufficient incentives for new investments. 350 -15% 1 800 RES World ST World RES EU ST EU 300 kW th 1 500 250 Source: ESTIF, based on data from IRENA, IEA-SHC and ESTIF. 1 200 2005 900 150 600 100 EC Projection of NREAPs implementation Solar thermal 300 50 Mtoe 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 6 100% 2 5 Triangle of Missed Opportunities Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 75% • 56.000 Jobs in the solar 4 thermal sector 3 50% • 9 billion euro natural gas imports 2 • 24 million tons CO2 released in Solar Thermal Market in Poland 25% 2 1 the atmosphere MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 0 0% 3 000 500 2012 2014 2016 2018 2020 2 700 450 NREAPs Target Proj. 2020 Target Triangle of missed opportunities 2 400 400 2 100 350 1 800 300 1 500 250 1 200 200 900 150 600 100 300 50 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Switzerland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 900 180 800 160 700 140 600 120 500 100 400 80 300 60 200 40 100 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Denmark 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 900 180 800 160 700 140 600 120 500 100 400 80 300 60 200 40 100 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Portugal 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 900 180 800 160 700 140 600 120 500 100 400 80 300 60 200 40 100 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Belgium 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 900 180 800 160 700 140 600 120 500 100 400 80 300 60 200 40 100 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Czech Republic 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 900 180 800 160 700 140 600 120 500 100 400 80 300 60 200 40 100 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Turkey 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 15 000 2 500 13 500 2 250 12 000 2 000 10 500 1 750 9 000 1 500 7 500 1 250 6 000 1 000 4 500 750 3 000 500

1 500 250 0 0 2006 2007 2008 2009 2010 2011 2012 2013

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) Solar Thermal Market in Germany 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 15 000 2 500 13 500 2 250 12 000 2 000 10 500 1 750 9 000 1 500 7 500 1 250 6 000 1 000 4 500 750 3 000 500

1 500 250 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Poland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 Solar Thermal Markets in Europe Trends and Market Statistics 2014 2 700 450 2 400 400 2 100 350 1 800 300 1 500 GERMANY (CONTINUED) 250 1 200 200 900 150 Industry: A shortage of skilled and motivated installers compounds the problem Outlook: In the first months of 2015 the market has deteriorated, although 600 100 since other investments in the booming construction sector are more profitable. since 1 April a drastically improved MAP offers some hope for improvements 300 50 Solar thermal systems are perceived as rather complicated – both in technical in the market. Higher support per m2 and inclusion of solar water heaters make 0 0 installation2005 as well2006 as in2007 sales 2008to the 2009end customer.2010 2011 2012 2013 2014 investments far more attractive than before. Moreover, policy makers seem to

2 realize that Germany may not reach its 2020 EU goals for renewable energy Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) Consumer behaviour: Conventional heating systems in households are not consumption (18 %). Combined heat and power producers are seriously being replaced, many have been in use for over 25 years. High, but stable, electricity considering solar thermal technologies to generate heat for their plants - in particular rates in 2014Solar Thermaland lower Market oil in andFrance gas prices have had a negative impact on investments. to cover the lower demand over spring and summer - as a response to the low 2 MarketingMWth Total of and the Newly MAP Installed support Capacity scheme (glazed collectors) has been poor and consumers mightm (x1000) not wholesale electricity prices. And even new players such as the utilities, threatened be3 000aware of its existence. In addition, consumers tend to install only the minimum500 by carbon taxes and even by shutdowns of old coal power plants, recently proposed required2 700 number of m² of collectors to receive the subsidy. 450 an incentive programme for the replacement of old heating systems to reduce

2 400 400 CO2 emissions. The market is dire but there is some light at the end of the tunnel. 2 100 350 1 800 300 1 500 250 1 200 200 900 150 OTHER SOLAR THERMAL MARKETS ABOVE 35 MWTH NEWLY INSTALLED CAPACITY 600 100 300 50 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 GREECENewly installed (MWth) Total installed n-1 (MWth) Annual Capacity NEWLY(m ) INSTALLED CAPACITY: 189 MWth ANNUAL EVOLUTION 2013/2014: 18.9%

In 2014, despite difficult economic conditions with the impact of the financial Solar Thermal Market in Greece 2 crisis and austerity measures, the Greek solar thermal market unexpectedly grew MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 by almost 20% (18.9%). The newly installed capacity totalled 189 MWth, which represents 270 000 m² of newly installed collector area. 2 700 450 2 400 400 These new installations were mainly for hot water supply in the tourism sector/ 2 100 350 islands (hotels, holiday lets, etc.); a growing market segment thanks to an extra two 1 800 300 million touristsSolar Thermal visiting Market Greece in Germany during the year. There has also been a welcome market MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) 1 500 250 upturnth for the installation of new solar thermal systems in replacement of old ones. 15 000 2 500 1 200 200 13 500 2 250 900 150 Greece reached a total installed capacity of 3 GWth (4.3 mio m²), representing 12 000 2 000 600 100 an increase of 2.6% over the previous year. This installed capacity provides an 10 500 1 750 300 50 estimated energy supply of 2 989 GWh, which corresponds to 52% of the 9 000 1 500 0 0 indicative 2020 target. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 7 500 1 250 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) The6 000 outlook for 2015 is so far very encouraging and seems to be in line with1 000the positive4 500 evolution in 2014. 750 3 000 500 Solar Thermal Market in Spain 2 1 500 250 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 700 ITALY NEWLY450 INSTALLED CAPACITY: 188 MWth ANNUAL EVOLUTION 2013/2014: -25% 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 400 400 The2 100 law No. 90 of 2013 (August) modified the tax deductions for energy efficiency350 measures in buildings, increasing the deductible share to 65% of the investment costs 1 800 300 Solar Thermal Market in Italy MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) over1 500 10 years. In November, the incentive was extended with gradually reduced250 th deductible shares: 65% until 31 December 2014; 50% until 31 December 2015 3 000 500 1 200 200 and 36% from 2016 onwards. 2 700 450 900 150 2 400 400 The600 tax deduction scheme has been much appreciated by consumers, and100 has 2 100 350 shown300 to be more effective and user-friendly than the incentive scheme50 for 1 800 300 renewable0 heating, Conto Termico. 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) One year and a half after comingth into force, the Contoth Termico is struggling to 1 200 200 take off, with less than 2% of the available total funds (900 mio euros) being used. 900 150 600 100 However,Solar solar Thermal thermal Market inis Austria by far the dominant technology in this scheme, with 2 5 MW443th applicationsTotal and Newly Installedapproved Capacity over (glazed a totalcollectors) of 7 948, receiving 12.8 miom (x1000) euros 300 50 up3 000 to December 20141. The scheme supported the installation of 38 257500 m2 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 gross2 700 area of solar thermal collectors, and represents therefore a relatively small450 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) fraction2 400 of the newly installed capacity. Of the installed collectors, 88% were400 flat plate,2 100 12% evacuated tubes. Moreover, 58.5% were thermosiphon systems,350 41.5%1 800 forced circulation systems. In 91.5% of the cases, the installations were300 for Solar Thermal Market in Poland sanitary hot water. In 2014, the Italian solar thermal market faced another difficult year, and the2 falling 1 500 250 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) trend in newly installed capacity continued, with newly installed collector 500area 1 200 200 3 000 2 An important reform of the scheme, streamlining and simplifying the application down to 187.9 MWth (268 500 m ) due to the persistent economic crisis and 900 150 2 700 450 procedure (which remains the main barrier), is currently under negotiation. bottlenecks in the support schemes. The market has consequently fallen by 25% 2 400 400 Expectations600 from the industry are high, as the potential of the fund rests largely100 compared with 2013. 2 100 350 unexploited.300 50 0 0 This1 800 is a disappointing result in a market that is now at only 11% of its indicative300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 targets1 500 for 2020. Although some efforts have been made to improve the situa250 - 1 www.gse.it/it/Conto%20Termico/GSE_Documenti/Relazione%20Conto%20Termico_2013-2014.pdfNewly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) th th tion,1 200 the fact is that they have not achieved the expected impact on the market.200 900 150

Solar Thermal Market in Switzerland 600 100 2 6MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 300 50 1 000 200 0 0 900 180 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 800 160 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 700 140 600 120 Solar Thermal Market in France 2 500 100 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 400 80 3 000 500 300 60 2 700 450 200 40 2 400 400 100 20 2 100 350 0 0 1 800 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) th th 1 200 200 900 150 600 100 Solar Thermal Market in Denmark 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 300 50 1 000 200 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 900 180 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 800 160 th th 700 140 600 120 Solar Thermal Market in Greece 500 100 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 400 80 3 000 500 300 60 2 700 450 200 40 2 400 400 100 20 2 100 350 0 0 1 800 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 900 150 600 100 Solar Thermal Market in Portugal 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 300 50 1 000 200 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 900 180 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 800 160 th th 700 140 600 120 Solar Thermal Market in Spain 2 500 100 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 400 80 3 000 500 300 60 2 700 450 200 40 2 400 400 100 20 2 100 350 0 0 1 800 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) th th 1 200 200 900 150 600 100 Solar Thermal Market in Belgium 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 300 50 1 000 200 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 900 180 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 800 160 th th 700 140

600 120 Solar Thermal Market in Austria MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) 500 100 th 3 000 500 400 80 2 700 450 300 60 2 400 400 200 40 2 100 350 100 20 1 800 300 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 900 150 600 100 300 50

Solar Thermal Market in Czech Republic 0 0 2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 2 1 000 200 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 900 180 800 160 Solar Thermal Market in Switzerland 2 700 140 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 600 120 1 000 200 500 100 900 180 400 80 800 160 300 60 700 140 200 40 600 120 100 20 500 100 0 0 400 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 300 60 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) th th 200 40 100 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in EU28 and Switzerland MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) th Solar Thermal Market in Denmark 2 32 500 5 000 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 30 000 4 500 1 000 200 27 500 4 000 25 000 900 180 22 500 3 500 800 160 20 000 3 000 700 140 17 500 2 500 600 120 15 000 2 000 12 500 500 100 10 000 1 500 400 80 7 500 1 000 300 60 5 000 500 2 500 200 40 0 0 100 20 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 0 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Portugal 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 900 180 Solar Thermal Market in Turkey 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 800 160 15 000 2 500 700 140 13 500 2 250 600 120 12 000 2 000 500 100 10 500 1 750 400 80 9 000 1 500 300 60 7 500 1 250 200 40 6 000 1 000 100 20 4 500 750 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3 000 500 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 1 500 250 th th 0 0 2006 2007 2008 2009 2010 2011 2012 2013

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) Solar Thermal Market in Belgium 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 900 180 800 160 700 140 600 120 500 100 400 80 300 60 200 40 100 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

1 500 250 0 0 2006 2007 2008 2009 2010 2011 2012 2013

1 500 250 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Italy 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 2 700 450 2 400 400 2 100 350 1 800 300 1 500 250 1 200 200 900 150 600 100 Solar Thermal Market in Germany 2 300 50 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 0 0 15 000 2 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 13 500 2 250 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) th th 12 000 2 000 10 500 1 750 9 000 1 500 Solar Thermal Market in Poland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 7 500 1 250 500 3 000 6 000 1 000 2 700 450 4 500 750 2 400 400 3 000 500

2 100 350 1 500 250 1 800 300 0 0 1 500 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 1 200 200 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 900 150 600 100 Solar Thermal Market in Italy 2 300 50 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 0 0 3 000 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 700 450 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 400 400 2 100 350 1 800 Solar Thermal Market in France 300 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 500 250 3 000 500 1 200 200 2 700 450 900 150 2 400 400 Solar Thermal Market in Germany 600 100 MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) 2 100th 350 300 50 15 000 2 500 1 800 300 0 0 131 500500 2502 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 000 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 121 200000 200 th th 1 750 10 900500 150 1 500 9 600000 100 Solar Thermal Market in Poland 7 500 1 250 2 300 50 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 6 0000 01 000 3 000 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 4 500 750 2 700 450 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 3 000 th th 500 2 400 400 1 500 250 2 100 350 0 0 1 800 300 2005Solar Thermal2006 Market2007 in Greece2008 2009 2010 2011 2012 2013 2014 2 1 500 250 MWth Total and Newly Installed Capacity (glazed collectors) m2 (x1000) Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 3 000 500 1 200 200 2 700 450 900 150 2 400 Solar Thermal Market in Italy 400 600 100 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 2 100 350 300 50 3 000 500 1 800 300 0 0 2 700 450 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250 2 2 400 400 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 2 100 350 900 150 1 800 300 600 100 Solar Thermal Market in France 1 500 250 MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) 300 50 th 1 200 200 3 000 500 0 0 Solar Thermal Markets in Europe Trends and Market Statistics 2014 900 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 150 2 700 450

2 600 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 100 2 400 400 300 50 2 100 350 0 0 1 800 300 2005Solar Thermal2006 Market2007 in Spain2008 2009 2010 2011 2012 2013 2014 1 500 250 MW Total and Newly Installed Capacity (glazed collectors) NEWLYm2 2 (x1000) INSTALLED CAPACITY: 182 MWth ANNUAL EVOLUTION 2013/2014: -5.1% th POLANDNewly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 3 000 500 1 200 200 900 150 2 700 450 According to the Polish Institute for Renewable Energy, the solar thermal market is 2 400 Solar Thermal Market in Poland 400 600 100 2 the biggest microgeneration RES market in Poland, bigger than biomass, heat pumps, MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 2 100 350 300 50 2 3 000 500 photovoltaics etc. Sales of solar collectors in 2014 were 182 MWth (260 000 m ). 1 800 300 A reduction0 of approx. 5% compared with the previous year; when there0 had 2 700 450 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250 already been a decrease of the order of almost 10%. The total installed2 capacity 2 400 400 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 reached 1.2 GWth (1.7 mio m²). The subsidies from the National Fund for 2 100 350 900 150 Environmental Protection and Water Management (NFOSiGW) still had a great 1 800 300 600 100 impact on the development of the solar thermal market. Over the five years 1 500 250 Solar Thermal Market in Greece duration of the subsidy programme, grants from NFOSGW contributed2 to 35% 300 50 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 200 200 of all installations of solar collectors in Poland. During the forthcoming years, 0 0 3 000 500 900 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 150 it will be also possible to obtain subsidies under the programme Prosumer – 2 700 450 600 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 100 NFOŚiGW. Following on the authoritative solar thermal roadmap up to 2030 th th 2 400 400 300 50 (published in 2009), with the support of other organisations, the national solar 2 100 350 0 0 energy industry, is developing a new renewable heating technology roadmap up 2005Solar Thermal2006 Market2007 in Austria2008 2009 2010 2011 2012 2013 2014 to1 800 2030. The roadmap with new targets for solar thermal goals will be published300 MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) th 2 1 500 250 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) in September 2015. 3 000 500 1 200 200 2 700 450 900 150 2 400 400 Solar Thermal Market in France 600 100 MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) 2 100th 350 3 000 500 300 50 1 800 300 0 0 2 700 450 1 500 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 400 NEWLY400 INSTALLED CAPACITY: 176 MWth ANNUAL EVOLUTION 2013/2014: 29.8% 1 200 SPAIN 200 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 100 350 900 150 1 800 300 The600 Spanish market has finally stabilised after four consecutive years of decline,100 1 500 250 Solar Thermal Market in Spain 300 50 2 when the market almost halved (-47%). The newly installed capacity reached MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 200 200 178.50 MWth, with an increase of 9.8%. In spite of the building sector crisis,0 3 000 500 900 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 150 the new build is still expected to represent between 100 to 125 MWth (143 000 2 700 450 2 600 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 100 to 178 500 m²). The main reason behind the results achieved in the Spanish 2 400 400 300 50 market in 2014 was the growth reported in Andalusia, the only region still 2 100 350 actively0 supporting solar thermal. Aggressive marketing strategies applied by0 the Solar Thermal Market in Switzerland 1 800 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142 region’sMWth Totalmajor and Newlyplayers Installed have Capacity created (glazed a collectors)significant increase in demand, mmore(x1000) than 2 1 500 250 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) doubling1 000 the regional market (estimated to have represented 60 MWth in 2014).200 1 200 200 By900 the end of 2014, the installed capacity in Spain totalled 2.24 GWth, an increase180 900 150 of800 9% over a one year period. This installed capacity represents an estimated160 600 100 2.24 TWhSolarth ofThermal heat Market generation, in Greece only 20% of the 2020 target for solar thermal set MW700 Total and Newly Installed Capacity (glazed collectors) m2 (x1000)140 by theth Spanish government. 300 50 3 600000 120500 0 0 2 500700 100450 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 400 80 2 2 400 400 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 300100 60350 1 200800 40300 Solar Thermal Market in Austria 100 20 2 1 500 250 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 2000 0200 3 000 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 900 150 2 700 450 DENMARK NEWLY2 INSTALLED CAPACITY: 125 MWth ANNUAL EVOLUTION 2013/2014: 52.9% Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 600 100 2 400 400 2 100 350 300 50 The Danish market saw a strong growth in 2014. The newly installed capacity 0 Solar Thermal Market in Denmark 0 1 800 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142 totalled 125 MWth (180 000 m²), of which approx. 95% are large installations MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 500 250 2 for district heating. There are still a lot of large projects under way and significant 1 000 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 200 market1 200 growth is expected again in 2015. 200 900 180 900 150 800 160 600 100 Solar Thermal Market in Spain The total installed capacity in Denmark amounted to 675 MWth (965 000 m²) by 700 2 140 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) the300 end of 2014. From this, approximately 390 MWth correspond to large 50solar 3 600000 120500 thermal0 systems (each above 1 000 m² / 700 kWth). The largest Danish solar district0 2005 2006 2007 2008 2009 2010 2011 20123 2013 2014 2 500700 100450 system is so far 50 MWth (70 000 m² collectors, 200 000 m seasonal storage) - but Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 2 400400 80400 now a (close to) 100 MWth plant is under consideration.th 2 300100 60350 200 40 The market for individual systems appeared to have stagnated at a low level of 1 800 300 Solar Thermal Market in Switzerland 2 1 100500 20250 aroundMWth 7Total MW and thNewly (10 Installed 000 m²) Capacity due (glazed to low collectors) activity in the construction industrym (x1000) and little1 000 public/political focus. 200 1 2000 0200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 900 180 900 150 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 800 160 600 100 700 140 300 50 600 120 0 0 2005Solar Thermal2006 Market2007 in Portugal2008 2009 2010 2011 2012 2013 2014 2 500 100 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 000 200 400 80 900 180 300 60 200 40 800 Solar Thermal Market in Austria 160 MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) 700th 140 100 20 3 000 500 0 0 600 120 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 700 450 500 100 2 2 400 400 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 400 80 2 100 350 300 60 1 800 300 200 40 Solar Thermal Market in Denmark 1 500 250 MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) 100 20 th 7 1 200 200 1 000 200 0 0 900 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 150 900 180

2 600 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 100 800 160 300 50 700 140 0 0 600 120 2005Solar Thermal2006 Market2007 in Belgium2008 2009 2010 2011 2012 2013 2014 2 500 100 MWth Total and Newly Installed Capacity (glazed collectors) m2 (x1000) Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 000 200 400 80 900 180 300 60 Solar Thermal Market in Switzerland 200 40 800 2 160 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 700 140 100 20 1 000 200 600 120 0 0 900 180 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

500 100 2 800 160 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 400 80 700 140 300 60 600 120 200 40 500 100 Solar Thermal Market in Portugal 2 100 20 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 400 80 0 0 1 000 200 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 60 900 180 200 2 40 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 800 160 100 20 700 140 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 600 120

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 500 100 Solar Thermal Market in Czech Republic 400 80 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 300 60 1 000 200 Solar Thermal Market in Denmark 2 200 40 MW900th Total and Newly Installed Capacity (glazed collectors) m (x1000)180 100 20 1 800000 160200 0 0 700900 140180 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

600800 120160 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 500700 100140 400600 80120 300500 60100 Solar Thermal Market in Belgium 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 200400 4080 1 000 200 100300 2060 900 180 2000 040 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 800 160 100 20 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 700 140 0 th th 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 600 120

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 500 100 400 80 300 60 Solar Thermal Market in Portugal 200 40 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) Solar Thermal Market in EU28 and Switzerland 100 20 2 1 MW000th Total and Newly Installed Capacity (glazed collectors) m (x1000)200 0 0 5 000 32 900500 180 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 30 000 4 500 800 160 2 27 500 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 4 000 25 700000 140 22 600500 1203 500 20 000 500 1003 000 17 500 2 500 15 400000 80 Solar Thermal Market in Czech Republic 2 000 2 12 300500 60 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 10 000 1 500 1 000 200 200 40 7 500 1 000 900 180 5 100000 20 500 800 160 2 5000 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 700 140 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 600 120 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) th th 500 100 400 80 Solar Thermal Market in Belgium 2 300 60 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 200 40 900 180 100 20 800 160 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 700 140 2 Solar Thermal Market in Turkey Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 MW600th Total and Newly Installed Capacity (glazed collectors) m (x1000)120 15 000500 2100 500 13 500400 280 250 12 000300 260 000 10 500200 140 750 9 000 1 500 100 20 Solar Thermal Market in EU28 and Switzerland 2 7 5000 10 250 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 5 000 6 000 1 000 32 500 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 30 000 4 500 4 500 th th 750 27 500 4 000 3 000 500 25 000 22 500 3 500 1 500 250 20 000 3 000 0 0 2006 2007 2008 2009 2010 2011 2012 2013 17 500 2 500 Solar Thermal Market in Czech Republic 2 15 000 MWth Total andNewly Newly installed Installed (MW Capacity) (glazed Total installed collectors) n-1 (MW ) Annual Capacity (m2m) (x1000) 2 000 th th 12 500 1 000 200 10 000 1 500 900 180 7 500 1 000 5 000 800 160 500 2 500 700 140 0 0 600 120 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 500 100 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 400 80 300 60 200 40 100 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) th th Solar Thermal Market in Turkey 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 15 000 2 500 13 500 2 250 12 000 2 000 10 500 1 750 Solar Thermal Market in EU28 and Switzerland 9 000 1 500 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 7 500 1 250 32 500 5 000 6 000 1 000 30 000 4 500 27 500 4 500 750 4 000 25 000 3 000 500 22 500 3 500 1 500 250 20 000 3 000 0 0 17 500 2 500 15 000 2006 2007 2008 2009 2010 2011 2012 2013 2 000 2 12 500 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 10 000 1 500 7 500 1 000 5 000 500 2 500 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

1 500 250 0 0 2006 2007 2008 2009 2010 2011 2012 2013

1 500 250 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Poland 2 MWth TotalSolar and Thermal Newly MarketInstalled in CapacityGermany (glazed collectors) m (x1000) 2 3 000MWth Total and Newly Installed Capacity (glazed collectors) m 500(x1000) 15 000 2 500 2 700 450 13 500 2 250 2 400 400 12 000 2 000 2 100 350 10 500 1 750 1 800 300 9 000 1 500 1 500 250 7 500 1 250 1 200 200 6 000 1 000 900 150 4 500 750 600 100 3 000 500 300 50 250 1 5000 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 20142 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in France 2 MWth TotalSolar and Thermal Newly MarketInstalled in CapacityItaly (glazed collectors) m (x1000) 2 3 000MWth Total and Newly Installed Capacity (glazed collectors) m (x1000)500 3 000 500 2 700 450 2 700 2 400 400450 2 400 2 100 350400 2 100 1 800 300350 1 800 1 500 250300 1 500 250 1 200 200 1 200 900 150200 900 600 100150 600 300 50100 300 0 050 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Greece Solar Thermal Market in Poland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000)2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 3 000 500 2 700 450 2 700 450 2 400 400 2 400 400 2 100 350 2 100 350 1 800 300 1 800 300 1 500 250 Solar Thermal Market in Germany 1 500 250 MW m2 (x1000) th Total and Newly Installed Capacity (glazed collectors) 1 200 200 15 000 2 500 1 200 200 900 150 13 500 2 250 900 150 600 100 12 000 2 000 600 100 300 50 10 500 1 750 300 50 0 0 1 500 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 9 000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 7 500 1 250 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 6 000 1 000 4 500 750 Solar Thermal Market in Spain 3 000 500 Solar Thermal Market in France 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000)2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 500 250 3 000 500 3 000 500 0 0 2 700 450 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 700 450 2 400 400 2 2 400 400 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 100 350 2 100 350 1 800 300 1 800 300 1 500 250 Solar Thermal Market in Italy 1 500 250 MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) th 1 200 200 Solar Thermal Markets in Europe Trends and Market Statistics 2014 1 200 200 3 000 500 900 150 900 150 2 700 450 600 100 600 100 2 400 400 300 50 300 50 2 100 350 0 00 0 1 800 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 AUSTRIA NEWLY INSTALLED CAPACITY:2005 2006 107 MW2007th 2008 ANNUAL2009 2010EVOLUTION2011 2013/2014:2012 2013 2014 -14.4% 2 1 500 250 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 The900 Austrian solar thermal market is one of the most developed markets in150 the Solar Thermal Market in Austria EU but it suffered a further decline in 2014. Overall, the investments in renewable 2 600 100 MWth TotalSolar and Thermal Newly MarketInstalled in CapacityGreece (glazed collectors) m (x1000) heating systems are facing competition from a strong and successful marketing Total and Newly Installed Capacity (glazed collectors) 2 300 50 3 000MWth m (x1000)500 campaign for gas and oil heating systems with attractive financial grants from the 3 000 500 0 0 2 700 450 oil associations,2005 2006 the electricity2007 2008 lobby who2009 supports2010 2011heat pump2012 (power2013 to2014 heat) and 2 2400 700 400450 PV systems (as an attractive financial product). In addition, the national2 incentive Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 400 400 programme does not fit in with the nine federal countries programmes, which 2 100 350 2 100 350 are complicated and not attractive to investors. The main challenge in 2015 will 1 800 300 1 1500 800 250300 be to findSolar new Thermal competitive Market in Poland business models, where the best production cost for 2 1 500 250 solarMWth thermalTotal and heating Newly Installed systems Capacity is a (glazed core collectors) argument. It is estimated that in 2015m (x1000) the 1 200 200 500 market3 000 will decrease further. The market development strategy should focus on 1900 200 150200 two2 700 areas: process heat systems and large-scale solar thermal plants in district450 600900 100150 heating2 400 systems and industry. 400 300600 50100 2 100 350 3000 050 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 800 300 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142 1 500 250 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200

900 150 Solar Thermal Market in Switzerland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 600 100 Solar Thermal Market in Spain 1 000 2 200 300 50 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 0 0 3900 000 180500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2800 700 160450 FRANCE NEWLY2 INSTALLED CAPACITY: 105 MWth ANNUAL EVOLUTION 2013/2014: -20.9% Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2700 400 140400 2600 100 120350 In1500 800spite of renewed efforts by professionals in the French solar thermal market100300 Solar Thermal Market in France 2 to rebuild trust and improve their image, 2014 proved to be yet another difficult MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1400 500 80250 3 000 500 year.1300 200 The overall installed area of solar thermal collectors fell by 21% 60from200 190 900 m² (133.6 MWth) to 150 500 m² (105.4 MWth). In the residential market, 2 700 450 200900 40150 domestic solar water heaters took an 18% drop in terms of collector area 2 400 400 100600 20100 (-15 000 m²). However, the number of units installed decreased less dramatically 2 100 350 3000 050 (-9%); this2005 is because2006 2007the average2008 collector2009 2010 area per2011 unit2012 installed2013 has 2014been falling 1 800 300 0 0 over recent years as new technologies have been developing. The market2 of 2005 Newly2006 installed2007 (MWth) 2008 Total2009 installed2010 n-1 (MW2011th) 2012 Annual Capacity2013 (m2014) 1 500 250 “combined” solar water and space heaters contracted strongly both in terms of Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 1 200 200 units (-36%) and area (-30%).th Non-domestic sales wereth also down by 22.6% with 900 150 a total solarSolar Thermalthermal Market collector in Denmark area amounting to 75 500 m² (53 MWth). Expected 2 600 100 changesMWth Total inSolar the and Thermal Newlycurrent MarketInstalled regulation in CapacityAustria (glazed for thermal collectors) requirements in new buildingsm (x1000) were MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) 300 50 not1 000 implementedth in 2015 as planned, it is therefore to be expected that the French200 3 000 500 0 0 solar900 thermal market will also be suffering in the coming months, although an action180 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 plan2800 700 has been put together by Enerplan to enhance consumer trust and help160 450with 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) market2700 400 structuring over the next three years. 140400 2600 100 120350 1500 800 100300 Solar Thermal Market in Greece 1 500 250 2 400 80 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 200 200 3 000 500 300 60 900 150 2 700 450 200 40 600 100 2 400 400 100 20 300 50 2 100 350 0 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 1 800 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142 SWITZERLAND NEWLY INSTALLED CAPACITY:Newly 79installed MW (MWth th) TotalANNUAL installed n-1EVOLUTION (MWth) 2013/2014: Annual Capacity (m )-7.2% 1 500 250 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 The900 Swiss market has not shrunk as much as feared. In 2014, the newly installed150 SolarSolar Thermal Thermal Market Market in in Portugal Switzerland capacity of glazed collectors totalled 79.1 MWth (113 000 m²), i.e. a decrease of 2 600 100 MWMWth TotalTotal and and Newly Newly Installed Installed Capacity Capacity (glazed (glazed collectors) collectors) mm(x1000)2 (x1000) 7%. The market volume is on a par with the 2008 level. A shift away from single- th 300 50 1 1000 000 200200 family houses can be observed, where heat pumps dominate. More and more 0 0 900900 180180 often they2005 are 2006combined2007 with2008 PV, now2009 more2010 attractive2011 due2012 to a2013 federal2014 subsidy of 800800 160160 30% for smallNewly installations installed (MW and) a new Total installedself-consumption n-1 (MW ) rule. Annual On Capacity the other(m2) hand, th th 700 140 multi-family houses (mainly for hot water) are perceived as a potential growth 700 140 market where solar thermal can be competitive. This is not self-evident, as the price 600600 120120 500 100 level forSolar installations Thermal Market is very in Spain high compared with neighbouring countries. In 2015, 500 100 Total and Newly Installed Capacity (glazed collectors) 2 theMW th26 Swiss cantons will adopt a new subsidy model, which will includem (x1000)several 400400 8080 3 000 500 improvements for solar thermal. 300300 6060 2 700 450 200200 4040 2 400 400 100100 2020 2 100 350 00 00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 800 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )2 1 500 250 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 900 150 Solar Thermal Market in Belgium Solar Thermal Market in Denmark 2 600 100 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000)2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 300 50 1 1000 000 200200 0 0 900900 180180 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 800 160 2 800 160 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 700700 140140 600 120 8 600 120 Solar Thermal Market in Austria 500500 100100 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 400400 8080 3 000 500 300300 6060 2 700 450 200200 4040 2 400 400 100100 2020 2 100 350 00 00 1 800 300 20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 2 1 500 250 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 900 150

600 100 Solar Thermal Market in Portugal 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 300 50 Solar Thermal Market in Czech Republic MW1 000 Total and Newly Installed Capacity (glazed collectors) m2 (x1000)200 0 0 th 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 000900 200180

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 900800 180160 800700 160140 700600 140120 Solar Thermal Market in Switzerland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 600500 120100 1 000 200 500400 10080 900 180 400300 8060 800 160 300200 6040 700 140 200100 4020 600 120 1000 200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 500 100 0 0 2005 Newly2006 installed2007 (MW 2008) 2009 Total installed2010 n-1 (MW2011) 2012 Annual2013 Capacity2014 (m2) 400 80 th th Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 300 60 th th 200 40 Solar Thermal Market in Belgium 2 100 20 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 0 0 1 000 200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 900 180 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) th th 800 160 Solar Thermal Market in EU28 and Switzerland 2 MW700th Total and Newly Installed Capacity (glazed collectors) m (x1000)140 32 500600 5120 000 Solar Thermal Market in Denmark 2 30 000 4 500 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 500 100 27 500 4 000 1 000 200 25 000400 80 900 180 22 500300 360 500 20 000 800 160 200 340 000 17 500 700 140 2 500 15 000100 20 2 000 600 120 12 5000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 500 100 10 000 1 500 7 500 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 400 80 th th 1 000 5 000 500 300 60 2 500 200 40 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 100 20 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 0 0 Solar Thermal Market in Czech Republic 2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000)

2 1 000 200 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 900 180 800 160

Solar Thermal Market in Portugal 700 140 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 600 120 1 000 200 500 Solar Thermal Market in Turkey 100 2 900 180 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 400 80 2 500 800 160 15 000 300 60 2 250 700 140 13 500 200 40 2 000 600 120 12 000 100 20 10 500 1 750 500 100 0 0 1 500 400 80 9 000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 1 250 300 60 7 500 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 000 200 40 6 000 750 100 20 4 500 0 0 3 000 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 0 0 2006Solar Thermal2007 Market in2008 EU28 and2009 Switzerland2010 2011 2012 2013 2 MWth Total and Newly Installed Capacity (glazed collectors) 2 m (x1000) Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 32 500 5 000 Solar Thermal Market in Belgium 2 30 000 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 4 500 27 500 1 000 200 4 000 25 000 900 180 22 500 3 500 800 160 20 000 3 000 700 140 17 500 2 500 15 000 600 120 2 000 12 500 500 100 10 000 1 500 400 80 7 500 1 000 5 000 300 60 500 2 500 200 40 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 100 20 2 0 0 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Czech Republic MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) th Solar Thermal Market in Turkey 2 1 000 200 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 900 180 15 000 2 500 800 160 13 500 2 250 700 140 12 000 2 000 600 120 10 500 1 750 500 100 9 000 1 500 400 80 7 500 1 250 300 60 6 000 1 000 200 40 4 500 750 100 20 3 000 500 0 0 1 500 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 0 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2006 2007 2008 2009 2010 2011 2012 2013 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

1 500 250 0 0 2006 2007 2008 2009 2010 2011 2012 2013

1 500 250 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in Poland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 2 700 450 2 400 400 2 100 350 Solar Thermal Market in Germany 1 800 300 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 500 250 15 000 2 500 1 200 200 13 500 2 250 900 150 12 000 2 000 600 100 10 500 1 750 300 50 9 000 1 500 0 0 1 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 7 500

2 6 000 1 000 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 4 500 750 3 000 500 Solar Thermal Market in France 250 2 1 500 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 0 0 3 000 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 700 450 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 400 400 2 100 350 Solar Thermal Market in Italy 1 800 300 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 500 250 3 000 500 1 200 200 2 700 450 900 150 2 400 400 600 100 2 100 350 300 50 1 800 300 0 0 1 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 250

2 1 200 200 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 900 150 600 100

Solar Thermal Market in Greece 300 50 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 0 0 3 000 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 2 700 450 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 400 400 2 100 350 Solar Thermal Market in Poland 2 1 800 300 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 500 250 3 000 500 1 200 200 2 700 450 900 150 2 400 400 600 100 2 100 350 300 50 1 800 300 0 0 1 500 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 200 200 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 900 150 600 100

Solar Thermal Market in Spain 300 50 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 0 0 3 000 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 2 700 450 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 400 400 2 100 350 Solar Thermal Market in France 2 1 800 300 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 500 250 3 000 500 1 200 200 2 700 450 900 150 2 400 400 600 100 2 100 350 300 50 1 800 300 0 0 1 500 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 200 200 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 900 150 600 100

Solar Thermal Market in Austria 300 50 MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) th 0 0 3 000 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 2 700 450 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 400 400 2 100 350 1 800 300 Solar Thermal Market in Greece 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 500 250 3 000 500 1 200 200 2 700 450 900 150 2 400 400 600 100 2 100 350 300 50 1 800 300 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 900 150 600 100 Solar Thermal Market in Switzerland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 300 50 1 000 200 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 900 180 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 800 160 700 140

600 120 Solar Thermal Market in Spain 2 500 100 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 3 000 500 400 80 2 700 450 300 60 2 400 400 200 40 2 100 350 100 20 0 0 1 800 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 200 200 900 150 600 100 Solar Thermal Market in Denmark 2 300 50 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 200 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

900 180 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 800 160 700 140 600 120 Solar Thermal Market in Austria 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 500 100 3 000 500 400 80 2 700 450 300 60 2 400 400 200 40 2 100 350 100 20 1 800 300 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 500 250

2 1 200 200 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 900 150 600 100

Solar Thermal Market in Portugal 300 50 MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) th 0 0 1 000 200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 900 180 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 800 160 700 140 Solar Thermal Market in Switzerland 2 600 120 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 500 100 1 000 200 400 80 900 180 Solar Thermal Markets in Europe Trends and Market Statistics 2014 300 60 800 160 200 40 700 140 100 20 600 120 0 0 500 100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 400 80 BELGIUMNewly installed (MW ) Total installed n-1 (MW ) Annual Capacity (mNEWLY2) INSTALLED CAPACITY: 36 MWth ANNUAL EVOLUTION 2013/2014: -11.9% th th 300 60 200 40 The100 newly installed capacity in Belgium is 36.4 MWth. This represents a decrease20 of Solar Thermal Market in Belgium 2 almost 12% over the previous year. In terms of total installed capacity the market MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 0 0 has increased2005 to2006 a total2007 of 3452008 MW2009th (4942010 033 m²).2011 2012 2013 2014 1 000 200 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 900 180 The Belgian solar thermal market is struggling as, overall, people are investing less in 800 160 renewable energy. PV and heat pumps are also facing a difficult situation in Belgium. 700 140 It is obviousSolar Thermalthat now Market solar in Denmark thermal systems have to be “sold”, whereas in the past 2 600 120 theyMWth usedTotal to and be Newly “ordered”. Installed Capacity Installers (glazed are collectors) not all sales persons and do notm take(x1000) the 500 100 time1 000 and effort to try to sell something people are not asking for. 200 400 80 900 180 300 60 By800 the end of 2014, the Walloon Region cut the subsidy scheme from something160 200 40 very700 interesting to nothing. The effect will be felt at the beginning of 2015. Since140 100 20 in 600Flanders new dwellings have to install renewable energy, the challenge will120 be 0 0 to500 convince builders that solar thermal is the best choice, and that it is the100 only 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 way400 to store energy and to be more independent from the electricity providers.80 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) A decrease of 20% is forecast for the Belgian market in 2015, due to the difficult th th 300 60 situation in Wallonia and tough market conditions in Flanders. 200 40 100 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Solar Thermal Market in Czech Republic NEWLY2 INSTALLED CAPACITY: 36 MWth ANNUAL EVOLUTION 2013/2014: -10.9% MWth TotalPORTUGAL and Newly Installed Capacity (glazed collectors) m (x1000) 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 1 000 200 900 180 In 2014, the Portuguese market declined by 11% compared with the previous year, 800 160 for a total of 35.7 MWth. This represents a greater decrease than the -7% mid-year Solar Thermal Market in Portugal MW Total and Newly Installed Capacity (glazed collectors) m2 (x1000) forecast.700 In 2014, a market change is evident: the tertiary sector and services140 are th 1 000 200 becoming600 increasingly important at the expense of the construction sector, which120 remains500 clearly dominant (4/5 of sold collectors). 100 900 180 400 80 800 160 At300 the end of 2014 and based on APISOLAR’s records since 2003, the cumulated60 700 140 2 600 120 installed200 area is of the order of 1.07 mio m (789.6 MWth). 40 100 20 500 100 Considering0 the annual installed capacity, and the estimate for 2015, the market0 400 80 2 should stabilize2005 2006 around2007 55 0002008 m / 2009year, based2010 on2011 the expected,2012 2013 yet slow,2014 increase 300 60 2 in new constructionNewly installed observed (MWth) in the Total market installed n-1 since (MW ththe) beginning Annual Capacity of this (m year.) 200 40 100 20 This is clearly insufficient to reach the goals of the National Plan for Energy 0 0 Efficiency and Renewable Energy, where it was determined that 2.2 mio m² of solar 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 thermal systems should be installed by 2020, which corresponds to an average annual Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) growth of 11.5% between 2010 and 2020. Currently it is forecast that only half that amountSolar Thermalwill be Market installed in EU28 by and 2020. Switzerland To achieve the target, the annual installations 2 2 mustMWth reachTotal 150 and Newly 000 Installedm / year, Capacity which (glazed can collectors) only be possible with support measures.m (x1000) Solar Thermal Market in Belgium 2 32 500 5 000 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 30 000 4 500 1 000 200 27 500 4 000 900 180 25 000 22 500 3 500 800 160 20 000 3 000 700 140 17 500 2 500 600 120 15 000 The Solar Keymark2 000 500 100 12 500 10 000 1 500 400 80 7 500 CEN Keymark Scheme1 000 300 60 5 000 500 200 40 2 500 0The Quality Label for Solar Thermal0 100 20 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 0 2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Benefits:Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 2 • Simple test procedure Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) • One test valid across Europe • Licensed products Number of Solar Keymark licences

• Access to subsidies Solar Thermal Market in Czech Republic 2 • Reliable quality and performance MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 1 000 1800 200 Solar Thermal Market in Turkey 2 1600 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 900 180 The Solar Keymark is a voluntary third-party certification mark for solar 15 000 2 500 800 1400 160 thermal products, showing that a product conforms to relevant European 13 500 2 250 1200 standards and fulfils additional requirements. It is used in Europe and 700 140 1000 12 000 increasingly recognized worldwide. 2 000 600 120 800 10 500 1 750 500 100 600 9 000 It was developed by the European Solar Thermal Industry Federation 1 500 400 80 (ESTIF) and CEN (European Committee for Standardisation) in close 400 7 500 1 250 300 60 co-operation with leading European test labs and with the support of the 200 6 000 1 000 200 40 European Commission. It is the European quality label for solar thermal 0 4 500 products, aiming to reduce trade barriers and promote the use of high 750 100 20 3 000 quality solar thermal products in the European market and beyond. 500 0 0

2005 2006 2007 Jan 2003 2008Jan 2004 2009Jan 2005 Jan 2006 2010 Jan 2007 2011Jan 2008 2012Jan 2009 Jan 2010 2013Jan 2011 2014Jan 2012 Jan 2013 Jan 2014 1 500 250 Newly installed (MW ) Total installed n-1 (MW ) Annual Capacity (m2) 0 0 th th 2006 2007 2008 2009 2010 2011 2012 2013

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) 9

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

1 500 250 0 0 2006 2007 2008 2009 2010 2011 2012 2013

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) SOLAR THERMAL MARKETS IN EUROPE DATA FOR 2014

> 250 kW Key th

50-250 kWth

25-50 kWth EU28+ Country name -7.1% Annual evolution 2013/2014 15-25 kWth Sweden -22.5% 31 840 MWth Cumulative installed capacity in operation (MWth) kW per 1000 capita 237 MWth 61.4 kWth th < 15 kWth 24.3 kWth

Denmark 52.9%

656 MWth

115.9 kWth

Ireland UK -7.1% -15.3%

226 MWth 543 MWth

48.9 kWth 8.4 kWth

Netherlands -19.0%

392 MWth

23.2 kWth Germany -11.8% Belgium 12 381 MWth -11.9% 149.9 kWth

346 MWth

30.9 kWth Luxembourg*

36 MW Czech Republic th -14.1% 66.7 kWth 355 MWth

33.7 kWth

Austria -14.4%

2 958 MWth France Switzerland 345.6 kWth -20.9% -7.2% Slovenia

1 691 MWth 941 MWth -55.0%

25.5 kWth 117 kWth 123 MWth 59.8 kWth

Italy -25.0%

2 774 MWth

45.6 kWth Croatia 3%

117 MWth

27.6 kWth

Portugal Spain -10.9% 9.8%

660 MWth 2 137 MWth

63.6 kWth 46.0 kWth

Malta 39.6%

37 MWth

86.5 kWth Evolution of European largest markets kWth m2

500 000 350 000 450 000 300 000 400 000

250 000 350 000 300 000 200 000 250 000 150 000 200 000 150 000 100 000 100 000 50 000 50 000

0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Italy Spain Austria France Greece Poland

2 Evolution of NewlyEuropean installed largest capacity markets for markets below 105 MWth (150 000m ) kWth kWth m2 m2

500 000 350 000 140 000 200 000 450 000 180 000 300 000 120 000 400 000 160 000 250 000 100 000 350 000 140 000 300 000 120 000 200 000 80 000 250 000 100 000 60 000 150 000 200 000 80 000 150 000 100 000 40 000 60 000 100 000 40 000 50 000 20 000 50 000 20 000 0 0 Evolution of European largest markets 0 0 2004kWth20052004200620052007200620082007200920082010200920112010201220112013201220142013 2014 m2 500 000 350Italy 000 Spain AustriaPortugal France Switzerland Greece DenmarkPoland Belgium 450 000 300 000 400 000

250 000 350 000 300 000 200 000 250 000 2 Newly installed capacity for markets below 105 MWth (150 000m ) kWth 150 000 m2 200 000 150 000 100 000 140 000 Shares of the European Solar Thermal Market (Newly Installed Capacity)200 000 100 000 180 000 120 000 50 000 50 000 160 000 Others DE 31% 0 100 000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013140GR 00020149% PT BE 120 000 80 000 IT 9% Italy SpainCH Austria France Greece Poland DE 100PL 000 9% 60 000 FR 80ES 000 9% DK 6% 40 000 60 000 AT 40AT 000 5% 20 000 FR 5% 20 000 Newly installedDK capacity for markets below 105 MW (150 000m2) CH 4% 0 th 0 2004kWth2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 BE 2% m2 GR ES PT 2% 140 000 Portugal Switzerland Denmark Belgium 200 000 OTHERS 9% IT 180 000 120 000 PL 160 000 100 000 140 000 120 000 80 000 Finland* 100 000 60 000 80 000 31 MWth 5.6 kWth 40 000 60 000 Shares of the European Solar Thermal Market (Newly Installed Capacity) 402 000 kWth Development of Main Markets - Newly Installed Capacity per 1000 Capita m 20 000 30 4020 000 Others DE 31% 250 350 Estonia* 2004 2005 2006 2007 2008 2009 2010 2011 GR2012 20139% 2014 PT 30 20 BE IT 9% 7 MWth CH Portugal Switzerland Denmark Belgium 25 5.6 kW DE PL 9% th 15 20 ES 9% FR 15 10 DK 6% 10 5 AT AT 5% Latvia 5 6.2% FR 5% 0 0 6 MWth 2004DK 2005 2006 2007 2008 2009 2010 2011 CH2012 20134% 2014 3.0 kW th BE 2% Austria Germany Greece Italy GR Poland Spain France EU28+ ES PT 2% Shares of the European Solar Thermal Market (Newly Installed Capacity) OTHERS 9% PL IT Lithuania* Others DE 31%

7 MWth GR 9% 2.5 kW PT th BE IT 9% CH DE PL 9%

FR ES 9% 2 kWth Solar Thermal Capacity in Operation (per 1000 Capita) DK 6%m 1 000 700 AT AT 5% 2 kWth Development of Main Markets - Newly Installed Capacity per 1000 Capita m 900 600 Poland FR 5%800 30 40 -5.1% 500 DK CH 4%700 35 1 222 MWth 25 BE 2%600 400 31.8 kWth 30 GR 500 20 ES PT 2% 300 25 400 OTHERS 9% 15 300 200 PL IT 20 15 200 10 100 100 10 5 0 CY AT GR DE CH DK MT LU PT EU28+ SI IE ES IT CZ PL BE 0 5 Slovakia 0 0 -11.3% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

107 MWth

19.7 kWth Austria Germany Greece Italy Poland Spain France EU28+

2 kWth Development of Main Markets - Newly Installed Capacity per 1000 Capita m 30 40 25 Solar Thermal Market in EU28 and Switzerland (glazed collectors) 35 kW m2 Hungary th 30 3 500 000 20 5 000 000 -11.1% 25 178 MWth 3 000 000 15 20 18.0 kWth 4 000 000

2 500 000 2 15 Romania kWth Solar Thermal10 Capacity in Operation (per 1000 Capita) m 103 000 000 -22.4% 7002 000 000 1 000 5 100 MWth 900 5 1 500 000 5.0 kWth 600 2 000 000 0 800 0 5001 000 000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013700 2014 1 000 000 600 400 500 000 Bulgaria* Austria Germany Greece Italy Poland Spain France500 EU28+ 0 300 0 400 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 91 MWth 300 12.6 kW 200 th Germany Next top 6 countries (AT, ES, FR, GR, IT, PL) Other 21 EU countries200 and Switzerland 100 Note: 100

0 CY AT GR The dataDE areCH usuallyDK providedMT LU by nationalPT EU28+ solarSI thermalIE associationsES IT orCZ otherPL nationalBE sources.0 Countries marked with an * are ESTIF estimations and are therefore not sufficiently accurate to set a percentage variation in the market.

2 kWth Solar Thermal Capacity in Operation (per 1000 Capita) m 700 1 000 900 600 2 System costs 2011 (combisystem 11m , retail price net for end consumer) 800 500 700 Solar Thermal MarketInstaller: in EU28 EBITDA and Switzerland5% (glazed collectors) 600 kW 400 m2 Greece th 500 18.9% 3 500Installer: 000 installation administrative costs 3% Manufacturing costs5 000 (collector, 000 store and others) 25% 300 400 3 000 MWth 3Installer: 000 000 labour costs for installation 8% 300 271.2 kWth 200 4 000 000 2 500 000 200 16% 100 ER M 100 LL n) AN 3 000 000 TA latio U 2 000 000 S tal FA CY AT GR DE CH DK IN s MT LU PT EU28+ C SI IE ES IT CZ PL BE 0 0 in T ( U

1 500 000 E 2 000 000 R

8 )

1 000 000 c

Research & Development 1%

o 1 000 000

Installer: EBITDA 29% f

500 000 R

Cyprus W

l L Manufacturing: marketing, sales, services 5%

A H s

T (

N 0

0 -7.3% I

2004 2005482 MW2006th 2007 2008 2009 2010% 2011 2012 2013 Manufacturing: 2014 management 2%

567.4 kWth Germany Next top 6 countries (AT, ES, FR, GR, IT, PL) Other 21 EU countries andManufacturing: Switzerland EBITDA 4%

Solar Thermal Market in EU28 and Switzerland (glazed collectors) WHSLE trade: marketing, sales, services, logistics 8% kW m2 Installer:th management 1% 3 500 000 WHSLE trade: management 1% 5 000 000 3 000 000 Installer: sales 4% WHSLE trade: EBITDA 3% 4 000 000 2 500 000 Note: EBITDA = earnings before interest, taxes, depreciation and amortization WHSLE = Wholesale 3 000 000 Source: 2ITW, 000 Technomar 000 System costs 2011 (combisystem1 500 000 11m2, retail price net for end consumer) 2 000 000 1 000 000 Installer: EBITDA 5% 1 000 000 500 000 Evolution in terms of jobs Installer: installation administrative0 costs 3% Manufacturing costs (collector, store and others)0 25% 20%2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Installer: labour costs for installation 8% 2013/2012 2014/2013 15% Germany Next top 6 countries (AT, ES, FR, GR, IT, PL) Other 21 EU countries and Switzerland 16% ER M LL n) AN 10% TA latio U S tal FA IN s C in T ( U

R 5% E

8 )

t %

Research & Development 1%

Installer: EBITDA 29% -5% f

l L Manufacturing: marketing, sales, services 5%

H s

T (

-10% L

E I

% Manufacturing: management 2% -15% System costs 2011 (combisystem RES11m World2, retail price net for endST World consumer) RES EU ST EU Manufacturing: EBITDA 4% kWth Source: ESTIF, based on data from IRENA, IEA-SHC and ESTIF. Installer: EBITDA 5% WHSLE trade: marketing, sales, services, logistics 8% Installer: management 1% Installer: installation administrative costs 3% WHSLE trade: managementManufacturing 1% costs (collector, store and others) 25% Installer: sales 4% Installer: labour costs forEC installationProjection 8%of NREAPs implementation SolarWHSLE thermal trade: EBITDA 3% 6% Note: EBITDA = earnings before interest, taxes, depreciation and amortizationR 1 WHSLE =M Wholesale Mtoe LE A AL tion) NU T lla F Source: ITW, Technomar S ta A IN s C 6 in T ( 100% U

E Triangle of Missed Opportunities 5 R

3 75% 8 ) • 56.000 Jobs in the solar

4 c

Research & Development 1%

d thermal sector

3 p 50%

Evolution in terms of jobs

Installer: EBITDA 29% f • 9 billion euro natural gas imports

2 L Manufacturing:2 marketing, sales, services 5%

a • 24 million tons CO released in

A H s

T (

S 25%

E I

the atmosphere

1 L

% Manufacturing: management 2% 20% 0% 0 2013/2012 2014/2013 15% 2012 2014 2016 2018 2020 Manufacturing: EBITDA 4%

10% NREAPs Target Proj. 2020 Target Triangle WHSLEof missed trade: opportunities marketing, sales, services, logistics 8% Installer: management 1% 5% WHSLE trade: management 1% 0% Installer: sales 4% WHSLE trade: EBITDA 3% -5% Note: EBITDA = earnings before interest, taxes, depreciation and amortization WHSLE = Wholesale -10% Source: ITW, Technomar -15% RES World ST World RES EU ST EU

kWth Source: ESTIF, based on data from IRENA, IEA-SHC and ESTIF. Evolution in terms of jobs

20% EC Projection of NREAPs implementation Solar thermal 2013/2012 2014/2013 15% Mtoe 10% 6 100% 5% 5 Triangle of Missed Opportunities 75% • 56.000 Jobs in the solar 4 0% thermal sector 3 -5% 50% • 9 billion euro natural gas imports 2 • 24 million tons CO2 released in -10% 25% 1 the atmosphere 0 -15% 0% RES World ST World RES EU ST EU 2012 2014 2016 2018 2020 kWth Source: ESTIF, based on data from IRENA, IEA-SHC and ESTIF. NREAPs Target Proj. 2020 Target Triangle of missed opportunities

EC Projection of NREAPs implementation Solar thermal

Mtoe

6 100% 5 Triangle of Missed Opportunities 75% • 56.000 Jobs in the solar 4 thermal sector 3 50% • 9 billion euro natural gas imports 2 • 24 million tons CO2 released in 25% 1 the atmosphere 0 0% 2012 2014 2016 2018 2020

NREAPs Target Proj. 2020 Target Triangle of missed opportunities Solar Thermal Markets in Europe Trends and Market Statistics 2014

LABELPACK A+ / ENERGY LABELLING

LabelPack A+ is leading the way towards a smooth implementation of energy labelling, mandatory from 26 September 2015 for heating appliances (including Lot 1 ‘Space heaters’ and Lot 2 ‘Water heaters’) under the Energy Labelling Directive 2010/30/EU, specifically the Commission Delegated Regulation (EU) No 811/2013 and No 812/2013.

Coordinated by ESTIF the LabelPack A+ project is focusing SUPPORT FOR THE LABELPACK A+ PROJECT! on the “package label” to boost the uptake of solar heating and From September 2015, anyone can make a difference to the national cooling. implementation of the project by: Initially targeting markets with JOINING THE NATIONAL STAKEHOLDERS PLATFORM particular relevance for the sector, while providing geo- Join as an advisory member of the National Stakeholders Platform and graphic diversity (Germany, increase awareness on renewable energy sources and establish a long- Italy, Austria, France, Portugal term collaboration between actors of the renewable heating and cooling and United Kingdom), Label- sector in your country. (Available in AT, DE, FR, IT, PT, UK). Pack will be extended to other countries in the EU, sharing tools and best-practice. PARTICIPATING IN TRAININGS

Participate in training on the Energy Labelling Directive via e-learning sessions and/or in-house training schemes. DIRECT BENEFITS FROM THE LABELPACK A+ PROJECT! USING THE ONLINE TOOL

Calculate, create and edit energy labels via the LabelPack A+ project’s The project consortium will: online simulation tool. Contact the LabelPack A+ helpdesk for users guidelines • develop to clarify the responsibility of each actor in the support. supply chain; • participate in the definition of theNational Pilot Actions; • provide recommendations for the legislation revision, to be com- municated to the European Commission and Member States; STAY INFORMED! • facilitate the exchange of product related information, as product databases available to all the actors in the energy labelling process; Regularly visit the LabelPack A+ project website www.labelpackaplus.eu • disseminate periodical information material for increased visibility and to keep up-to-date with developments, to download the latest documents to achieve common understanding. and give your feedback!

This project has received funding from the European Union’s Horizon 2020 research and Innovation Programme under grant agreement No 649905

12 Solar Thermal Markets in Europe Trends and Market Statistics 2014

MARKET SIZE IN TERMS OF SOLAR THERMAL CAPACITY (KWTH) AND IN TERMS OF COLLECTOR AREA (M2)

Market (=Newly Installed)3 In Operation2

2012 2013 2014 Annual 2014 Annual Evolution of Evolution the Market of the Total Installed Capacity Total Total Flat Vacuum Total Total Total Total Total Glazed Glazed Plate Collectors Glazed Glazed Glazed Glazed Glazed m2 m2 m2 m2 m2 kW(th)1 % m2 kW(th) % Austria 206 390 179 180 150 530 2 910 153 440 107 408 -14.4% 4 225 401 2 957 781 1.1% Belgium 62 000 59 000 42 500 9 500 52 000 36 400 -11.9% 494 033 345 823 11.6% Bulgaria* 8 000 5 600 5 100 500 5 600 3 920 - 130 300 91 210 - Croatia 18 474 20 900 18 952 2 575 21 527 15 069 3.0% 167 092 116 964 14.8% Cyprus 23 917 20 991 18 834 633 19 467 13 627 -7.3% 688 234 481 764 -1.5% Czech Republic 50 000 44 531 27 095 11 148 38 243 26 770 -14.1% 506 992 354 894 7.5% Denmark 113 000 117 170 179 186 0 179 186 125 430 52.9% 936 841 655 789 20.5% Estonia* 1 800 2 000 1 000 1 000 2 000 1 400 - 10 520 7 364 - Finland* 4 000 4 000 3 000 1 000 4 000 2 800 - 44 023 30 816 - France4 249 500 190 300 150 500 0 150 500 105 350 -20.9% 2 415 200 1 690 640 6.6% Germany 1 150 000 1 020 000 814 000 86 000 900 000 630 000 -11.8% 17 687 000 12 380 900 4.4% Greece 243 000 227 500 270 000 600 270 600 189 420 18.9% 4 286 300 3 000 410 2.6% Hungary 50 000 18 000 11 500 4 500 16 000 11 200 -11.1% 253 814 177 670 6.7% Ireland 27 087 27 269 14 691 10 644 25 335 17 735 -7.1% 323 163 226 214 8.5% Italy 330 000 358 000 236 280 32 220 268 500 187 950 -25.0% 3 962 644 2 773 851 6.8% Latvia 300 2 222 1 940 420 2 360 1 652 6.2% 8 622 6 035 37.7% Lithuania* 1 800 2 200 800 1 400 2 200 1 540 - 10 400 7 280 - Luxemburg* 4 150 6 000 5 000 1 000 6 000 4 200 - 51 200 35 840 - Malta* 1 700 1 089 1 065 455 1 520 1 064 39.6% 52 984 37 089 3.0% Netherlands 42 470 38 775 31 411 0 31 411 21 988 -19.0% 560 693 392 485 3.8% Poland 302 000 274 100 208 100 52 000 260 100 182 070 -5.1% 1 745 590 1 221 913 17.5% Portugal 90 612 57 234 50 064 903 50 967 35 677 -10.9% 943 051 660 136 4.5% Romania 15 500 23 850 6 200 12 300 18 500 12 950 -22.4% 143 050 100 135 11.3% Slovakia 7 500 6 200 4 600 900 5 500 3 850 -11.3% 152 450 106 715 1.5% Slovenia 16 500 10 000 3 500 1 000 4 500 3 150 -55.0% 176 300 123 410 -5.6% Spain 225 683 228 721 235 355 15 894 251 249 175 874 9.8% 3 052 435 2 136 705 8.7% Sweden 11 257 8 611 5 024 1 649 6 673 4 671 -22.5% 338 356 236 849 -1.2% Switzerland 142 000 121 974 98 744 14 403 113 147 79 203 -7.2% 1 343 962 940 773 7.4% United Kingdom 59 275 43 133 29 508 7 044 36 552 25 586 -15.3% 775 558 542 891 3.9%

EU28 + Switzerland 3 457 915 3 118 550 - - 2 897 077 2 027 954 -7.1% 45 486 207 31 840 345 5.3%

ESTIF would like to thank the solar thermal associations and other national sources for providing the data for these statistics, in particular: AEE INTEC; Association pour Techniques Thermiques de Belgique (ATTB/Belsolar); Energy Institute Hrvoje Požar; Cyprus Ministry of Energy, Commerce, Industry and Tourism; Czech Ministry of Industry and Trade; Danish Solar Heating Association (DSF); Finish Solar Energy Association / Statistics Finland - Environment and Energy; Syndicat des professionnels de l’énergie solaire (ENERPLAN); Bundesverband Solarwirtschaft (BSW-Solar); Greek Solar Industry Association (EBHE); Solar Thermal Association of Hungarian Building Engineers (MÉGNAP); Sustainable Energy Authority of Ireland (SEIA); Assotermica; Latvian solar thermal collector association; Energy Statistics Division - Statistics Lithuania; Malta Resources Authority; Holland Solar; EC BREC Institute for Renewable Energy (IEO); Associação Portuguesa da Indústria Solar (APISOLAR); Camera de Comerţ şi Industrie Româno-Germană (AHK); THERMO/SOLAR Ziar s.r.o.; University of Ljubljana; ASOCIACIÓN SOLAR DE LA INDUSTRIA TÉRMICA (ASIT); Svensk solenergi; Chalmers University of Technology; Swissolar; Solar Trade Association (STA). A complete list with acknowledgements and comments can be found on the ESTIF website in the market statistics section.

Figures for countries marked with an * are ESTIF estimations and, therefore, these are not sufficiently accurate to be used for percent change calculations in these markets. A complete list with updated market figures 2013-2014 can be found on the ESTIF website in the market statistics section.

1) The relation between collector area and capacity is 1m² = 0.7kWth (kilowatt-thermal) 2) Capacity “in operation” refers to the solar thermal capacity built in the past and deemed to be still in use. ESTIF assumes a 20 year product life for all systems installed since 1990. Most products today would last considerably longer, but they often cease to be used earlier, e.g. because the building was demolished, or there has been a change of building use. 3) The figures presented are the latest available information at the end of May 2015. In some cases there may be later updates, which means that figures for one given year may be revised subsequently.

4) The figures shown here relate to Metropolitan France (mainland). As a reference, in 2010 the overseas departments amounted to 49 MWth (70,000 m²).

13 Solar Thermal Market in Germany 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 15 000 2 500 13 500 2 250 12 000 2 000 10 500 1 750 9 000 1 500 7 500 1 250 6 000 1 000 4 500 750 3 000 500

1 500 250 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

Solar Thermal Market in EU28 and Switzerland 2 MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) 32 500 5 000 30 000 4 500 27 500 4 000 25 000 22 500 3 500 20 000 3 000 17 500 2 500 15 000 2 000 Solar Thermal Markets in Europe Trends and Market Statistics 2014 12 500 10 000 1 500 7 500 1 000 5 000 500 2 500 0 0 COUNTRY FOCUS: 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 TURKEY Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m )

TURKEY POPULATION: 77 695 904 AREA: 783 562 km2 DENSITY: 97/km2 GDP: 9330 EUR/P.C. MEAN GLOBAL RADIATION: 1311 MWh/m2a

For decades, in parallel with its rising population and increasing GDP, Solar Thermal Market in Turkey 2 Turkey has been experiencing rapid demand growth in all segments of MWth Total and Newly Installed Capacity (glazed collectors) m (x1000) the energy sector. Turkey’s energy consumption of primary energy and 15 000 2 500 electricity has risen at an annual average rate of 4 to 8% in the last two 13 500 2 250 decades. It is expected that this trend will continue in the future. Turkey 12 000 2 000 spends 60 billion dollars in energy imports every year. In 2014, the number 10 500 1 750 of buildings reached 9.3 million, with 22 million dwellings consuming 28.2 9 000 1 500 million toe. This consumption is mainly supplied by natural gas, coal and 7 500 1 250 wood for heating and electricity for cooling. 6 000 1 000 4 500 750 Therefore, energy security and sustainable energy supply are among the 3 000 500 main policy concerns of Turkey, to reduce import dependency (less than 1 500 250 0 0 28% of total produced locally - 32,3 Mtoe), managing current account 2006 2007 2008 2009 2010 2011 2012 2013 deficit (energy imports represent 25.3% of total imports) and meeting 2 Newly installed (MWth) Total installed n-1 (MWth) Annual Capacity (m ) its target for renewables share by 2023.

Hence, Turkey gives significant importance to the diversification of energy Some recent developments in application and technology have been: sources, encouraging the energy production from renewable sources in a secure, economic and cost-effective manner, developing the sector in 1. Solar water heaters, gaining importance in Turkey’s social housing and the country. public funded projects, built by the country’s Housing Development Administration (TOKI), In this context; solar energy is a main driver since Turkey is located • TOKI has provided a total of 20 000 flats for low-income families with geographically in a region called the “solar band,” which has the greatest solar hot water in Kayabasi/Istanbul, Yapracik/Ankara, and Kayseri2, utilization potential for solar energy. • TOKI had installed solar heating systems in 100 hospitals across the country3, According to the latest market surveys in 2011 and 20121; multi-family • One year after the earthquake in the city of Van in eastern houses represent the fastest-growing segment in Turkey´s solar thermal Turkey, TOKI has built 15 323 new flats for those who lost their market, with 52% of the vote from the survey participants. Another homes, with individual 120 litre thermosiphon solar water heaters, 17% consider single-family houses to be the most important segment, corresponding to a total collector area of 30 646 m² 4. 14% opted for the tourism sector, 10 % for the public sector and 7% for • The high-security Silivri Prison is equipped with 3500 m² solar water industrial process heat. heaters, as being Turkey´s biggest solar thermal project so far.

The most typical application in Turkey is domestic hot water since the early 2. Solar combisystems, combining solar water and space heating and 1970s. The most typical product type, and still popular, is the individual working alongside gas boilers, are becoming popular reference projects thermosiphon system with 2 flat plate collectors, each 2m². This market is for villas and particularly hotels. Large companies have shown strong very mature and widespread throughout the country. There are, however, interest since each project includes between 70 and 500 solar collector many other solar heating and cooling applications in the country; such as: installations.

• Water heating in domestic, industrial, tourism, and service facilities, 3. Vacuum tube technology is making gains in the Turkish market5. Between • Space cooling in hotels and, recently, in shopping malls 2007 and 2013, the share of vacuum tubes increased from 4 to nearly • Drying agricultural products without a special setup and recently with 33% of the total newly installed collector area in the country. solar air heaters, • Heating vegetable and flower greenhouses in the Mediterranean, Aegean, Currently, Turkey has the biggest European solar thermal energy market. and partially South-eastern Anatolian regions of Turkey Turkey is still keeping its position as 4th by cumulated installed capacity and 2nd by newly installed capacity worldwide. With more than 90 manufacturers and 3 000 installers, Turkey’s solar industry is increasing its activities and RUSSIA 2 BULGARIA supplying over 1.5 mio m of locally-produced solar thermal collectors. Black Sea Domestic hot water is still the main usage area rather than solar heating

GEORGIA and cooling, which are almost negligible at this stage, although the market Istanbul Samsun is promising great opportunities.

Troy ANKARA The Turkish Solar Energy Association, GUNDER (ISES-TR) continues its endeavours to facilitate information flow for a healthy market develop- TURKEY ment and is now looking forward to welcoming the participants at the SHC 2015 Conference in Istanbul. Van

Mersin For more information Tel: +90 312 4181887 E-mail: [email protected]

1 www.solarthermalworld.org/content/turkey-high-quality-solar-hot-water-systems-across-earthquake-area IRAQ CYPRUS SYRIA 2 www.solarthermalworld.org/content/turkey-high-quality-solar-hot-water-systems-across-earthquake-area Mediterranean Sea 3 www.solarthermalworld.org/content/turkey-solar-hot-water-systems-supply-20000-low-income-family-flats 4 www.solarthermalworld.org/content/turkey-industry-discovers-space-heating-and-process-heat 5 www.solarthermalworld.org/content/turkey-vacuum-tubes-rise

14 Solar Thermal Markets in Europe Trends and Market Statistics 2014

MAJOR MARKET TRENDS Average ISOL Index = Indicator for market development

Brazil (27) 48 Turkey (28) 46 Average ISOL Index = Indicator for market development 2013 India (52) 45 Analyses of solrico Average ISOL Index = Indicator for market development Mexico (29) 39 Author:Brazil (27) Bärbel Epp 48 Chile (13) 35 Brazil (27) 48 The ISOLTurkey business (28) Index compares the attractiveness and the growth 46 South Africa (25) 31 opportunitiesIndia (52) of key solar thermal markets on a scale of 0 to 100 45Turkey (28) 46 points. The industry in Brazil, Turkey and India is most satisfied with China (45) 28 the currentMexico (29)business situation reaching high indices of 45 to 48 points.39 India (52) 45 China dropped significantly in the ranking and reached a lowest-ever USA (38) 27 35 Mexico (29) 39 score withChile 28(13) points due to a dramatic turn down on the market from 0 20 40 60 Southaverage Africa annual (25) growth rates of +30 % to -20% in 2014. USA31 is still on Chile (13) 35 the bottom of the ranking with 27 points. China (45) 28 South Africa (25) 31 USA (38) 27 China (45) 28 Which market segment will dominate your27 sales in 2020 in your national market? 0 20 40 USA (38) 60 0 20 40 60 North/Central Europe 46% 27% 11% 16% (101 answers) Which market segment will dominate your sales in 2020 in your national market? Transition from residential to commercial BRIC countries plus Mexico Which market segment will dominate40% your sales in 202023% in your national market?24% 7% (70 answers)Single-family houses, the currently most important sales segment, will lose relevance. The majority of the solar thermal manufacturers North/Central Europe 46% 27% 11% Mediterranean16% Regionworldwide predict their sales to be dominated by other client groups (101 answers) 40% 29% 11% 8% 8% North/Central(91 answers) Europe than homeowners46% in 2020. In the Mediterranean27% region11% for16% example (101 answers) every third company assumes that multi-family houses will dominate BRIC countries plus Mexico 0% 20% 40% 60% 80% 100% 40% 23% 24% 7% their sales in 2020. In Central Europe every sixth company predicts (70 answers) BRIC countries plus Mexico Single-family thehouses highest sales40% withMulti-family public orders houses23% by 2020. In the BRICTourism24% countries, sector7% the Mediterranean Region (70 answers) transition away from residential is even more dynamic. A quarter of 40% 29% 11% 8%Solar8% Cooling Process heat Public sector (91 answers) the manufacturers in India, Brazil and China foresee industrial process Mediterranean Region heat to be the main40% market segment29% in 2020. 11% 8% 8% 0% 20% 40% 60% 80%(91 answers)100%

Single-family houses Multi-family houses Tourism sector 0% 20% 40% 60% 80% 100% Solar Cooling Process heat Public sectorSingle-family houses Multi-family houses Tourism sector Solar Cooling Process heat Public sector

There is a clear correlation between a positive market development How will end consumer prices of solar thermal systems develop and increasing system prices and the opposite. 64 % of the companies in 2015 compared to last year? from the large BRIC markets expect raising end-consumer solar system prices in 2015, whereas in the slow moving markets in Europe only Mediterranean 2015 9% of the companies consider increasing system prices in the coming (94 answers) months. The price pressure is highest in the Mediterranean region where How will end consumer prices of solar thermal systems develop 39 % expects prices to fall. in 2015 compared to last year? North/Central Europe 2015 (112answers)How will end consumer prices of solar thermal systems develop The presented results are taken from the latest ISOL Navigator study in 2015 compared to last year? publishedMediterranean in December 2015 2014. Further information: www.solrico.com BRIC countries 2015 (94 answers) Mediterranean(61answers) 2015 (94 answers) North/Central Europe 2015 0% 50% 100% (112answers) North/CentralRaising Europe signi cantly 2015 / Falling slightly / Staying as they are BRIC countries 2015 (112answers)slightly falling signi cantly (61answers) BRIC countries 2015 0% 50% (61answers)100%

Raising signi cantly / Falling slightly / Staying as they are 0% 50% 100% slightly falling signi cantly Raising signi cantly / Falling slightly / Staying as they are slightly falling signi cantly

15 Solar Thermal Markets in Europe Trends and Market Statistics 2014

SOLAR THERMAL, THE VERSATILE TECHNOLOGY: THREE EXAMPLES OF APPLICATIONS

Large-scale installations (m2)

160 000 140 000 New SOLAR HEATExtension FOR INDUSTRIAL PROCESSES 120 000 There are still Results100 000 from the SHIP database and SHC IEA Task 49 Christoph80 000 Brunner, AEE INTEC many opportunities 60 000 Solar40 Heat000 for Industrial Processes (SHIP) is a promising market for large- scale20 solar000 thermal applications. Currently, there are 155 operating solar in several market thermal systems for process heat worldwide, with a total capacity of about 0 101 MWth (1442006 4062007 m²). 2008 The first2009 applications2010 2011 were 2012 of an 2013 experimental 2014 segments to increase nature with relatively small scale. In recent years, significantly larger solar thermal fields have been used. the use of solar The chart below shows the importance of large-scale solar thermal applications. The largest 20 plants represent in total 104 918 m², i.e. 73% thermal technology. of the total installed gross area, and 60 % of the gross area was installed since 2011.

Here are three examples Scale of SHIP plants 71 plants with 6 295m2 20 plants with 104 918m2

45 60 000 of applications, showcased 40 50 000 35 Gross area (m 30 40 000 for their potential role 25 30 000 20 2 15 20 000 ) in the energy transition. Number of plants (-) 10 10 000 5 These applications have 0 0 0 - 100 100 - 200 200 - 300 300 - 400 400 - 500 500 - 600 600 - 700 700 - 800 800 - 900 a common denominator: 900 - 1000 1000 - 2000 2000 - 5000 5000 - 10 000 they contribute to a Area-categories (m2) 10 000 - 40 Sum of gross area per category Number of plants per category reduction in the use of conventional energy – In 2013 the largest collector field worldwide started operating in Chile with a 39 300 m² gross area. The average plant size (of plants > 100 m²) has increased in recent years. Between 2000 and 2007 the average plant solar energy is free! size was 585 m² gross area, since then it has risen to 2 118 m².

In recent years, three industry sectors have been particularly receptive to SHIP applications: • Food and drink industry (30 % of installed gross area) Total number of estimated solar cooling systems installed worldwide. • Mining and quarrying Source:(28 % Solem of Consultinginstalled / TECSOLgross area) • Textile and leather industry (22 % of installed gross area) 1 200

Europe The most1 000 common collector types are: • Flat plate collectorsWorld (65 % of installed gross area) • Evacuated800 tube collectors (21 % of installed gross area) • Parabolic trough collectors (7 % of installed gross area) • Air collectors600 (5 % of installed gross area)

However,400 the great potential of SHIP remains largely untapped. Some areas must be improved for the full uptake of SHIP: sector concepts to

systems in Europe & the World systems in Europe & the 200

open amount of installed Solar Cooling Total new markets, lower system costs for the consumer (this does not necessarily0 imply reduced collector costs), and financial solutions from the solar industry2004 to meet 2006 the 2007 short 2008 amortization 2009 2010 period 2011 required 2012 2013 by end-users. 2014

16 Large-scale installations (m2)

160 000 140 000 New Extension 120 000 100 000 80 000 60 000 40 000 20 000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014

Solar Thermal Markets in Europe Trends and Market Statistics 2014

Scale of SHIP plants

71 plants with 6 295m2 20 plants with 104 918m2

45 60 000 40 50 000 35 Gross area (m 30 40 000 25 30 000 20 2 SOLAR DISTRICT HEATING SOLAR15 COOLING 20 000 ) Number of plants (-) 10 10 000 5 Jan-Olof Dalenbäck, Chalmers University of Technology Daniel0 Mugnier, TECSOL 0

For solar heating to be a reliable heating system, as with all renewables, In the growing cooling and refrigeration global market, there is a 0 - 100 100 - 200 200 - 300 300 - 400 400 - 500 500 - 600 600 - 700 700 - 800 800 - 900

it is a prerequisite to develop large-scale applications. The market for huge potential for cooling systems driven900 - 1000 with solar thermal energy. 1000 - 2000 2000 - 5000 large-scale solar heating systems (>500 m² collector area, >350 kWth A major argument for their installation is their lower5000 - 10 000 consumption of Area-categories (m2) 10 000 - 40 nominal thermal power), has increased more or less steadily since 2007. conventional energy. The main reason is a very positive development of solar district heating Sum of gross area per category Number of plants per category systems in Denmark, with 61 systems and altogether 555 000 m² of In 2014 there were around 1 200 solar cooling plants installed world- collector area in operation end 2014. wide, covering all types of technologies and sizes. Of course, this still only represents a small market share in view of the tens of millions of compression air-conditioning systems sold annually, but recently a Large-scale installations (m2) number of large and very large installations were completed or are under

160 000 development. And – even more important – a number of projects are wholly driven by private investors, without major incentive or funding 140 000 New Extension programme supporting these projects. 120 000 100 000 80 000 Total number of estimated solar cooling systems installed worldwide. 60 000 Source: Solem Consulting / TECSOL

40 000 1 200 20 000 Europe 1 000 0 World 2006 2007 2008 2009 2010 2011 2012 2013 2014 800

600 The diagram above shows that the systems are meeting expectations, generating investment both for newly built plants and for enlarging 400 existing ones.

systems in Europe & the World systems in Europe & the 200

The pioneering RD&D development started in Sweden in the 80s. It was amount of installed Solar Cooling Total followed later on by RD&D programmes in Germany and Austria, and has 0 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 now matured in Denmark. The main driver in Denmark is the combination of a high share of wind powerScale and of SHIP high plants natural gas cost, which makes large-scale71 plants solar with 6heating 295m2 systems economical20 plantsin Danish with 104 918mdistrict2 heating systems. A similar situation may occur in other countries in the near future. Currently, however, only very few companies offer complete solar cooling 45 60 000 40 solutions, as most systems still consist of components or subsystems 50 000 Interest35 in large-scale systems has gradually increased in other countriesGross area (m ”custom made”. Moreover, there is still a need for greater expertise and and large-scale30 plants are now demonstrated in 20 European 40countries. 000 experience from planners, installers, and other professionals involved. 25 30 000 The average20 size of the 227 plants in operation is 3 500 m² (2.4 MWth). The next major step to gain market share is to transform today’s low 2 The largest15 plant so far represents 70 000 m² (49 MWth) of solar 20collectors 000 ) volume market channels into a mass market, while driving costs down Number of plants (-) 10 and has just been put into operation. The main application is 10in 000 district further through the standardization of concepts, design methods and heating 5systems, but there are also a number of systems used for large development of reliable package solutions. 0 0 building complexes and in industry processes, for heating as well as cooling. Renewable energies are called to play an important role in future energy 0 - 100

More information100 - 200 about200 - 300 300 - 400 solar400 - 500 district500 - 600 600 - 700 700 - 800 heating800 - 900 systems is provided by the systems in an effort to limit CO2 emissions generated by conventional 900 - 1000 1000 - 2000 2000 - 5000

EC IEE project SDH at www.solar-district-heating.eu. 5000 - 10 000 energy sources. Solar cooling technology is one of the important solutions

2 10 000 - 40 Area-categories (m ) to this problem and it provides a niche market opportunity for many stakeholders involved, including building owners, planners, manufacturers, Sum of gross area per category Number of plants per category and installation companies.

Total number of estimated solar cooling systems installed worldwide. Source: Solem Consulting / TECSOL 17 1 200

Europe 1 000 World

800

600

400

systems in Europe & the World systems in Europe & the 200 Total amount of installed Solar Cooling Total 0 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 Solar Thermal Markets in Europe Trends and Market Statistics 2014

2020 TARGETS: A BERMUDA TRIANGLE OF LOST OPPORTUNITIES?

In the Renewable Energy Progress Report1 launched in The indicative targets proposed by the Member States in the NREAPs June 2015, the European Commission mentions that the were already modest in terms of ambition. A study on the Potential of EU Member States are on track to reach the 2020 targets. Solar Thermal in Europe, published in 2009, projected different scenarios: Business As Usual (BAU), Advanced Market Deployment (AMD) and a However, projections for 2020 show a different scenario with targets more ambitious one, Full R&D and Policy Scenario (RDP). Interestingly, the not being reached. At first, following the adoption of the Renewables combination of national indicative targets for solar thermal in the NREAPS, Directive in 2009, the development of renewables was impressive. published slightly later, were extremely close to the AMD scenario2. Afterwards, as support dwindled, there was a dramatic slowdown in renewable energy investments with a lower uptake of renewable 2020

technologies. EU Path BAU AMD NREAPs RDP

Total GWth 60 68 102 104 272 And, even if the EU Member States combined have exceeded the Installed capacity Million m² 86 97 146 148 388 indicative target for 2014, the results are quite different per country and Target Mtoe 3.7 4.2 6.3 6.4 16.7 per technology, highlighting the diversity that characterizes Europe and 2020 the different levels of commitment. The current projection presented by the European Commission Technology Projected NREAP Projected 2020 Deviation Deviation indicates that Members States are on a ‘path’ that is below the business Category deployment target 2020 target 2014 2020 2014 2014 deployment deployment as usual scenario presented in the referred study. Clearly, measures being (max) (max) taken by the Member States are not supporting the development of the RES total 176.7 172.3 221.5 242.1 3% -9% technology as expected. RES heating 87.6 80.5 107.5 108.9 9% -1% & cooling The main causes behind the difficulties in the solar thermal market have RES 72.5 73.3 94.9 103.7 -1% -9% electricity been broadly discussed. It is, in general, agreed that these include consumer

RES 16.6 18.4 19.1 29.5 -10% -35% preference for lower investment costs needed for conventional heating transport solutions, being rather more sensitive to this factor than to the actual energy Solar Thermal 2.2 2.6 3.7 6.4 -15% -42% cost. This effect is enhanced by the current market approach, where the replacement of existing equipment is mostly with an equivalent equip- Projected deployment and deviation from planned EU technology deployment 2014 and 2020, Renewable energy progress report, European Commission, June 2015. Values on Mtoe. ment rather than with a new solution. Other factors are the low fossil fuel prices (subsidized in several cases) and additional competition in the The projection in terms of development per technology shows that, for market provided by alternative renewable energy solutions. several technologies, the indicative targets were not met in 2014 and risk not being met by 2020. Solar thermal is one of the most obvious cases Removal of several of the existing barriers depends on the eventual where, if intentions are not met with concrete actions, the indicative 2020 intervention of public authorities, such as the limited awareness of the targets for this technology will unfortunately be missed. While in 2012, the technologies, instability in support measures, lack of regulations promoting sector was 1.7% below the indicative target, in 2014 it is already -15.3% the switch from fossil fuels to clean options or scarcity of qualified and the projections indicate that by 2020, the deviation from the target installers. It is obvious that, in general, Member States are falling short on will be between -41.8% and -45.6%. the implementation of the renewables directive, in particular with regard to ‘Administrative procedures, regulations and codes’3 or ‘Information and training’4, on issues such as building regulations5, adequate information and awareness raising initiatives at local and regional level6 or on the certification and qualification of installers7.

EC Projection of NREAPs implementation Solar thermal

Mtoe 6 100%

5 75% 4

3 50% Triangle of 2 Missed Opportunities 25% • 56.000 Jobs in the solar thermal sector 1 • 9 billion euro natural gas imports • 24 million tons CO2 released in the atmosphere 0 0% 2012 2014 2016 2018 2020

NREAPs Target Proj. 2020 Target Triangle of missed opportunities

18 Evolution of European largest markets kWth m2

500 000 350 000 450 000 300 000 400 000

250 000 350 000 300 000 200 000 250 000 150 000 200 000 150 000 100 000 100 000 50 000 50 000

0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Italy Spain Austria France Greece Poland

2 Newly installed capacity for markets below 105 MWth (150 000m ) kWth m2

140 000 200 000 180 000 120 000 160 000 100 000 140 000 120 000 80 000 100 000 60 000 80 000

40 000 60 000 40 000 20 000 20 000 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Portugal Switzerland Denmark Belgium

Shares of the European Solar Thermal Market (Newly Installed Capacity)

DE 31% Evolution of OthersEuropean largest markets kWth GR 9% m2 PT BE IT 9% 500 000 350 000 CH PL 9% DE 450 000 300 000 ES 9% FR 400 000 DK 6% 250 000 350 000 AT AT 5% 300 000 200 000 FR 5% DK CH 4% 250 000 150 000 BE 2% 200 000 GR PT 2% 150 000 100 000 ES OTHERS 9% 100 000 IT 50 000 PL 50 000

0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Italy Spain Austria France Greece Poland

2 kWth Development of Main Markets - Newly Installed Capacity per 1000 Capita m 30 40 Newly installed capacity for markets below 105 MW (150 000m2) 25 th 35 kWth m2 30 20 140 000 25 200 000 15 20 180 000 120 000 10 15 160 000 10 100 000 140 000 5 5 120 000 0 80 000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 100 000 60 000 80 000 Austria Germany Greece Italy Poland Spain France EU28+ 40 000 60 000 40 000 20 000 20 000 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Portugal Switzerland Denmark Belgium

2 kWth Solar Thermal Capacity in Operation (per 1000 Capita) m 700 1 000 900 600 800 500 700 600 400 500 300 Shares of the European Solar Thermal Market (Newly Installed Capacity)400 200 300 200 100 100 Others DE 31%

0 CY AT GR DE CH DK MT LU PT EU28+ SI IE ES IT CZ PL BE 0 GR 9% PT BE IT 9% CH DE PL 9%

FR ES 9% DK 6% AT AT 5% FR 5% DK CH 4% Solar Thermal Market in EU28 and Switzerland (glazed collectors) 2 BE 2% kWth m GR 5 000 000 3 500 000 ES PT 2% 3 000 000 OTHERS 9% 4 000 000 PL IT 2 500 000 3 000 000 2 000 000

1 500 000 2 000 000 1 000 000 1 000 000 500 000 Solar Thermal Markets in Europe Trends and Market Statistics 2014 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 kWth Development of Main Markets - Newly Installed Capacity per 1000 Capita m Germany Next top 6 countries (AT, ES, FR, GR, IT, PL) Other 21 EU countries and Switzerland 30 40 25 35 30 20 25 15 20

10 15 10 Not meeting the5 indicative targets for solar thermal also implies a lost 5 System costs 2011 (combisystem 11m2, retail price net for end consumer) opportunity in0 terms of job creation. Since solar thermal is mostly a EUROPE0 CANNOT 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 decentralizedInstaller: energy EBITDA 5% source, nearly half the investments in the sector are allocated to the lower end of the value chain. This means that, even AFFORD TO BE A Austria Germany Greece Italy Manufacturing Poland costs Spain (collector, store France and others) EU28+ 25% Installer: installation administrativewhen collectors costs 3% are not produced locally, the installation is done by local BERMUDA TRIANGLE Installer: labour costs forcompanies. installation 8% This has an important impact on the local economy and thus OF LOST 6% contributes to local job creation.R 1 LocalM added value is self-evident when LE A AL tion) NU T lla F analysing the breakdown Sof tathe purchaseA price of a solar thermal system. OPPORTUNITIES IN s C in T ( U

E On average, installation covers from 40 to 60% of the final costs, as can R

8 )

be seen from the graphc at the bottom of the page indicating the

Research & Development 1%

3 8

Installer: investmentEBITDA 29% split for a solarf thermal system in Germany .

W 2 l L Manufacturing: marketing, sales, services 5%

A H kW Solar Thermal Capacitys in Operation (per 1000 Capita) m

th (

E I

1 000

700 % Manufacturing: management 2% The local dimension of the solar thermal sector is a major positive 900 600 externality and a key success factor for the industry. It givesManufacturing: the opportunity EBITDA 4% 800 to adapt to different500 demands in a flexible and timely way, while providing 700 WHSLE trade: marketing, sales, services, logistics600 8% Installer:benefits management to local400 1% economies. WHSLE trade: management 1% 500 300 400 Installer: sales 4% WHSLE trade: EBITDA 3% Nonetheless,200 this potential for job creation is being squandered. While According300 to the estimation in the study on the Potential of Solar Thermal 200 Note: EBITDA = earningsglobally before the interest, number taxes, depreciation of jobs inand the amortization renewable WHSLE =sector Wholesale is growing 10 to 20% in Europe, in a Business as Usual scenario (above current EC projections 100 100 Source: ITW, Technomara year, in Europe the scenario is very different, with a lower growth or for ST in 2020), the number of jobs in the sector by 2020 would be 0 CY AT GR DE CH DK MT LU PT EU28+ SI IE ES IT CZ PL BE 0 even a decrease observed in 2014. 46 900. If the indicative targets for solar thermal were achieved, this would represent an additional 56 000 jobs in the solar thermal sector in Europe Evolution in terms of jobs by 2020, totaling 103 200. Furthermore, it would represent a saving of 9 billion euros in natural gas imports and avoid the release of 24 million

20% tons CO2 into the atmosphere. 2013/2012 2014/2013 15% In terms of energy production, it would represent the equivalent to 10% Solar Thermal Market in EU28 and Switzerland (glazed collectors) 2 kW 78 TWhm th, while in 2014, as indicated in the NREAP barometer, the 5% th 3 500 000 5 000 000 estimated energy generation amounted to 21.9 TWhth, only 28% of 0% 3 000 000 the target,4 000 000 with Italy, France and Spain being the countries that are the -5% 2 500 000 furthest away from their indicative national targets in absolute terms. -10% 3 000 000 2 000 000 -15% Europe cannot afford to be a Bermuda Triangle of Lost Opportunities. 1 500 RES 000 World ST World RES EU ST EU 2 000 000 kW th Solar is a no-regret option for Europe, both for power and heat 1 000 000 Source: ESTIF, based on data from IRENA, IEA-SHC and ESTIF. generation,1 000 000 as the biggest energy and economic waste today is the 500 000 untapped free supply of solar energy! 0 0 For solar thermal2004 this 2005 decrease 2006 is 2007more 2008evident, 2009 following 2010 the2011 decline 2012 in 2013 2014 EC Projection of NREAPs implementation Solar thermal the market. For Germanyinstance, ESTIF Next top evaluates 6 countries (AT, the ES, FR,job GR, losses IT, PL) in the Other sector21 EU countries at and Switzerland Mtoearound 16 000 since 2008, while EU Observer estimates a reduction of over6 9000 jobs since 2010. 100% 5 Triangle of Missed Opportunities 75% • 56.000 Jobs in the solar 4 thermal sector 3 50% • 9 billion euro natural gas imports 2 • 24 million tons CO2 released in 25% 1 the atmosphere 0 0% System costs2012 2011 (combisystem2014 2016 11m 22018, retail price2020 net for end consumer)

NREAPs Target Proj.Installer: 2020 EBITDATarget 5% Triangle of missed opportunities

Installer: installation administrative costs 3% Manufacturing costs (collector, store and others) 25% 1 Renewable energy progress report, European Commission, June 2015 Installer: labour costs for installation 8% 2 The scenarios on the study on the Potential of Solar Thermal in Europe were developed for EU27 and the current total for 16% ER M the NREPAS is for EU28. LL n) AN TA latio U S tal FA 3 Art. 13 of the RES-Directive (Directive 2009/28/EC) IN s C in T ( U 4 Art. 14 of the RES-Directive (Directive 2009/28/EC) R

R 5 Art 13.6 - By 31 December 2014, Member States shall, in their

8 )

t %

building regulations and codes or by other means with equivalent

Research & Development 1%

o effect, where appropriate, require the use of minimum levels of

Installer: EBITDA 29% f

o energy from renewable sources in new buildings and in existing

l L Manufacturing: marketing, sales, services 5%

A H s

( buildings that are subject to major renovation. […]

E I

E 6 Points 1, 2, 5 and in particular point 6 of Art. 14 of the RES-Directive

% Manufacturing: management 2% (Directive 2009/28/EC): Member States, with the participation of Manufacturing: EBITDA 4% local and regional authorities, shall develop suitable information, awareness-raising, guidance or training programmes in order to WHSLE trade: marketing, sales, services, logistics 8% inform citizens of the benefits and practicalities of developing and Installer: management 1% using energy from renewable sources. WHSLE trade: management 1% 7 Art. 14.3 - Member States shall ensure that certification schemes or equivalent qualification schemes become or are available by Installer: sales 4% WHSLE trade: EBITDA 3% 31 December 2012 for installers of small-scale biomass boilers and stoves, solar photovoltaic and solar thermal systems, shallow Note: EBITDA = earnings before interest, taxes, depreciation and amortization WHSLE = Wholesale geothermal systems and heat pumps. […] Source: ITW, Technomar 8 Data for a combisystem of 11 m² in 2011, including installation, considering the retail price net for end consumer

Evolution in terms of jobs 19

20% 2013/2012 2014/2013 15% 10% 5% 0% -5% -10% -15% RES World ST World RES EU ST EU

kWth Source: ESTIF, based on data from IRENA, IEA-SHC and ESTIF.

EC Projection of NREAPs implementation Solar thermal

Mtoe

NREAPs Target Proj. 2020 Target Triangle of missed opportunities 2015 DECEMBER 2-4 ISTANBUL, TURKEY

www.shc2015.org

The 2015 Solar Heating and Cooling for Buildings and Industry conference is the premier annual event for solar professionals in heating and cooling applications.

As diverse and interesting as the host city itself, SHC 2015 is taking place in Istanbul, Turkey, from 2 to 4 December 2015

NEW AT SHC 2015! The Industry Day, a brand new concept will bring together stakeholders from the sector for fruitful discussions about the latest industry developments. Topics such as new markets and products, competitiveness, and future trends will be addressed by international industry leaders.

SHC 2015 is THE solar heating and cooling conference of 2015!

A joint conference of the IEA Solar Heating and Cooling Programme and the European Solar Thermal Industry Federation (ESTIF), SHC 2015 is hosted by GÜNDER, the Turkish section of the International Solar Energy Society.