Solar Water Heating on the Rise: Tapping into Commercial Solar Thermal

The commercial and institutional solar water heating market is primed for liftoff in the United States, presenting a new opportunity for vendors and customers alike. The US market, hampered by a lack of consistent policy support in the past and recently slowed by low natural gas prices, has nonetheless benefited from new government incentives and an increase in customers exploring renewable energy to meet resource reduction goals and hedge against rising energy prices.

Solar water heating is emerging as a practical option for businesses and other organizations that spend a significant amount to heat water or that need proven ways to reduce their environmental footprint. Numerous commercial customers have purchased pilot systems and are planning to expand deployment. Systems are being installed across the United States. Nearly all facilities use solar thermal for “domestic hot water” and other cleaning and washing applications; a few are using it for space heating and cooling. In a development that indicates potential for much greater growth in the market, solar thermal power purchase agreements are becoming available.

While nearly every imaginable kind of organization is buying commercial-scale solar thermal systems, this report reveals the types of commercial customers best suited from an economic viewpoint. We identify key market segments by hot water application, business activity, building type, and organization type, and we provide detailed information on the amount, intensity, and timing of water heating in those segments. For each segment, we profile example customers and installations, including purchase motivations, costs, and finance models, with which current and potential market participants can compare their experience and assumptions.

In addition, this report provides the essentials that every participant in the marketplace should have as reference: overviews of US and global markets; technology types, applications, and costs; and relevant federal and state regulations and incentives. The report closes with a set of recommendations for getting the most out of potential customer siting opportunities, from qualification to evaluation and expansion.

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