R&D isn’t t violates Energy production it’s pre-production

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At best they’re indirect which means they’re FX---this cards draws a predictable limit and brightline

GSWH 11 Global Solar Water Heating Market Transformation and Strengthening Initiative, This publication is the result of a joint effort from the following contributors: The European Solar ThermalIndustry Federation (ESTIF), the United Nations Environment Program (UNEP) through its Division ofTechnology, Industry and Economics (DTIE) and the Global Environment Fund (GEF). "Guidelines for policy and framework conditions" No Specific Date Cited, Most Recent Citations From 2011 www.solarthermalworld.org/files/policy_framework.pdf?download

8 Non financial incentives for solar thermal

Non Financial Incentives include all public policies that support the creation of public good, even when providing an indirect financial advantage to the solar thermal market. For instance: an awareness raising campaign financed from public money or a programme to subsidise craftsmen training or R&D, etc. Obviously, all these instruments create an indirect financial advantage for companies involved in the market and this benefit is then passed on to the users.

8.1 Solar thermal obligations

• What is a Solar Thermal Obligation (STO)?

STO are legal provisions making mandatory the installation of solar thermal systems in buildings. The obligation mainly applies to new buildings and those undergoing major refurbishment. The owner must then install a solar thermal system meeting legal requirements. Most of the existing STOs are connected to national or regional energy laws and implemented through the municipal building codes. A growing number of European municipalities, regions and countries have adopted solar thermal obligations. Already today, more than 150 million people live in regions covered by a STO.

• Benefits

A major benefit of solar thermal ordinances is their effectiveness combined with low costs and limited administrative overheads for public authorities. As part of the building permit process, the inspection with regard to the renewable energy requirement is simple and thus does not strain public finances.

The introduction of a solar thermal ordinance prevents market fluctuation caused by inconsistent incentive programmes. It provides a stable planning environment for market actors and investors, encouraging local economic growth and creating new jobs in this sector.

• Unwanted effects and flanking measures

Solar obligations have a profound effect on the solar thermal market's structure. Therefore, to maximise their benefits, they require flanking measures.

In a market where solar thermal becomes mandatory, promoters and customers will tend to question the solar systems' operation and react more negatively than in a voluntary market.

Ends users and the construction sector will often go for the cheapest possible solution, while building owners will try to circumvent the obligation through exemptions. The real impact of any regulation strongly depends on its technical parameters and control procedures.

It is vital, therefore, that the regulations adopted ensure state-of-the-art quality assurance, products, planning, installation and maintenance of the system, guaranteeing the same high level of customer satisfaction as in the current voluntary market. Poor performance of "mandatory" systems would not only undermine public acceptance of the obligation, but also, possibly, of the solar thermal technology in general.

Israel, 30 years of experience with solar thermal ordinances

Thirty years ago, Israel was the first country to pass legislation on solar thermal installations. With the second oil crisis at the end of the 1970s, members of parliament examined ways to make their country less dependent on imported energy. The result was a law, which made solar water heaters mandatory in new buildings such as residential housing, hotels, guest houses and old people's homes up to 27 metres high. The legislation entered into force in 1980.

Nowadays over 80% of Israel's households get their domestic hot water from solar rooftop heaters. A typical domestic unit consists of a 150 litre insulated storage tank and a 2 m2 collector. These hot water heaters save the country the need to import about 4% of its energy needs, and replace about 9% of the electricity production.

The law has now become redundant. More than 90% of the solar systems are installed on a voluntary basis, i.e. they are installed in existing buildings, or the systems are larger than required by the obligation.

Source: PROSTO project

8.2 Quality, standards and certification policy

The need and methods to ensure quality in the market are so important for solar thermal, that a complete guide is dedicated to this topic in the framework of the GSWH project.

Why do we need standards?

The objective of standardisation and quality assurance is to guarantee product safety and quality, as well as lower prices. At every stage of market development, the capacity of solar thermal systems to deliver the expected level of performance is a key factor. In the early stage of the market, quality issues have had long lasting devastating effects. The existence of standards is the cornerstone of quality assurance.

The actors of standards and certification

Standardisation and quality for solar thermal should be the result of a joint effort from public authorities (market regulation), the industry, the technical community and, when they are adequately organised, the end users.

• Public authorities have a key role to play in imposing stringent quality requirements and in initiating, facilitating and controlling the standardisation process.

• The industry must provide product and technical expertise. It must understand the benefits

of ensuring standardised level of quality. Public authorities should guarantee that the standards are neutral and do not favour certain products or companies.

• I t is essential to be able to rely on independent testing facilities and certification bodies. If the private initiative is not adequate, then public authorities should actively support the creation of such structures.

• Consumer organisations can bring a useful contribution to the process. Quality installation for quality products

Solar thermal products usually need to be installed. This operation can be simple to the extent that it might not require the intervention of a specialist, e.g. some termosiphons systems, but on average it should be undertaken by a professional. To guarantee performance, the quality of the installation is as important as the quality of the system. Minimum requirements in terms of training and qualification of installers should be implemented in parallel with product requirements. Public authorities should regulate in the absence of initiatives from trade and industry.

Performance and quality for a sustainable market

Performance and quality measures do not constitute flanking or accompanying measures. Framework and regulations should be developed, and relevant bodies involved from the beginning, even if this has to be imposed to the market to some extent.

The market tends to be shortsighted; industry will naturally prefer to avoid costs and regulations. The benefits of high quality regulations and market surveillance will emerge eventually and guarantee a sustainable market. Public authorities should ensure that incentives and promotion endorse quality.

8.3 Research and development, demonstration projects (definition, importance, recommendations, examples)

Solar thermal is a simple and mature technology; however, research and development are necessary to guarantee that performance will continue to improve and costs to decrease. Research and development can also contribute to adapt the technical features of products to local needs, e.g. improve water tightness in tropical areas, resistance to frost in mountainous regions. Research and development cannot proceed only from public initiative but, through public universities and public research centres, public authorities have a leading role to play.

Building up centres of technical excellence

Applied research, engineering education, development, product innovation, standardisation, testing are closely linked and there are a lot of synergies between those fields. Most of the time, the same persons will be likely to teach, test and lead research projects. A sustainable market will always require relying on a high level engineering community. Public authorities should encourage the creation of multi disciplinary technical facilities for solar thermal engineering and encourage or even impose on the industry to participate in this effort.

Importance of demonstration projects

For both promotion and technical (experimental) reasons demonstrations projects are extremely useful. Projects implementing technologies that are not market ready, but which have an important potential, will allow testing and improving the solution, gather data, monitor functioning and finally demonstrate the feasibility to the general public and the industry in order to prepare the introduction on the market.

9 Financial incentives (direct, indirect, tax incentives, low interest loans): definition, importance, recommendations, examples

Financial Incentives include any public policy giving a financial advantage to those who install a solar thermal system or that use solar thermal energy.

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