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  • How Solar Water Heaters Industry Benefits the Local Economy

How Solar Water Heaters Industry Benefits the Local Economy

Aug 22 2021

Heating and cooling account for nearly half of global final energy consumption, but most of the energy use is currently generated from fossil fuels. With the declining costs of renewable energy, solar has become especially attractive for water heating. Just like other renewable energy technologies, solar water heaters have a role to reduce greenhouse gas emissions, create jobs, improve healthcare and communications, and drive local commerce through the market and industry they build at the local level.

The case for local industries is especially pertinent in the time of COVID-19, when countries experience disruptions in the supply of materials and workforce, and domestic supply chains have proved to be very essential for the economies.  Policies are therefore crucial to strengthen local industries, consequently expanding benefits along all segments of value chains by leveraging local capacities to create domestic value.

Solar water heaters are a mature technology that has been successfully deployed in several countries for more than 30 years, mostly in the residential sector, providing an affordable solution for many households. It is assumed that a four-member household uses about 300 litres of hot water per day. Given that heating water accounts for about 18% of household energy use on average, and that demand for hot water is growing with household incomes, the decarbonisation of water heating in particular becomes a key element of the on-going energy transition.

Source: IRENA | News