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Subsidy programs on diffusion of solar water heaters: Taiwan's experience

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  • Chang, Keh-Chin
  • Lin, Wei-Min
  • Lee, Tsong-Sheng
  • Chung, Kung-Ming

Abstract

Financial incentives are essentially one of the key factors influencing diffusion of solar water heaters in many countries. Two subsidy programs were initiated by the government of Taiwan in 1986 (1986-1991) and 2000 (2000-present), respectively. Those long-term national programs are considered to be the driving force on local market expansion. In 2008, the regional subsidy programs for solar water heaters were announced by Kaohsiung city and Kiemen county, which resulted in the growth in sales. A revised subsidy was also initiated by the government of Taiwan in 2009. The subsidy is 50% more. However, the tremendous enlargement of market size with a high-level ratio of subsidy over total installation cost might result in a negative impact on a sustainable SWH industry and long-term development of the local market, which is associated with system design and post-installation service. This paper aims to address the relative efficiency and pitfalls of those national and regional programs.

Suggested Citation

  • Chang, Keh-Chin & Lin, Wei-Min & Lee, Tsong-Sheng & Chung, Kung-Ming, 2011. "Subsidy programs on diffusion of solar water heaters: Taiwan's experience," Energy Policy, Elsevier, vol. 39(2), pages 563-567, February.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:2:p:563-567
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    1. Ma, Ben & Song, Guojun & Smardon, Richard C. & Chen, Jing, 2014. "Diffusion of solar water heaters in regional China: Economic feasibility and policy effectiveness evaluation," Energy Policy, Elsevier, vol. 72(C), pages 23-34.
    2. Giglio, Thalita & Lamberts, Roberto & Barbosa, Miriam & Urbano, Mariana, 2014. "A procedure for analysing energy savings in multiple small solar water heaters installed in low-income housing in Brazil," Energy Policy, Elsevier, vol. 72(C), pages 43-55.
    3. Ma, Ben & Yu, Yihua & Urban, Frauke, 2018. "Green transition of energy systems in rural China: National survey evidence of households’ discrete choices on water heaters," Energy Policy, Elsevier, vol. 113(C), pages 559-570.
    4. Szu-Cheng Lu & Keh-Chin Chang & Wei-Min Lin & Kung-Ming Chung, 2015. "Energy Usage of Residents on Offshore Islands in Taiwan," Sustainability, MDPI, vol. 7(6), pages 1-13, May.
    5. Higgins, Andrew & McNamara, Cheryl & Foliente, Greg, 2014. "Modelling future uptake of solar photo-voltaics and water heaters under different government incentives," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 142-155.
    6. Curtin, Joseph & McInerney, Celine & Ó Gallachóir, Brian, 2017. "Financial incentives to mobilise local citizens as investors in low-carbon technologies: A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 534-547.
    7. Lin, W.M. & Chang, K.C. & Chung, K.M., 2015. "Payback period for residential solar water heaters in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 901-906.
    8. Chang, Keh-Chin & Lin, Wei-Min & Chung, Kung-Ming, 2013. "Solar thermal market in Taiwan," Energy Policy, Elsevier, vol. 55(C), pages 477-482.
    9. Antonio Barragán-Escandón & Julio Terrados-Cepeda & Esteban Zalamea-León, 2017. "The Role of Renewable Energy in the Promotion of Circular Urban Metabolism," Sustainability, MDPI, vol. 9(12), pages 1-29, December.
    10. Chang, Keh-Chin & Lin, Wei-Min & Leu, Tzong-Shyng & Chung, Kung-Ming, 2016. "Perspectives for solar thermal applications in Taiwan," Energy Policy, Elsevier, vol. 94(C), pages 25-28.
    11. Wei-Min Lin & Kai-Chun Fan & Keh-Chin Chang & Kung-Ming Chung, 2013. "Dissemination of Solar Water Heaters in Taiwan: The Case of Remote Islands," Energies, MDPI, vol. 6(10), pages 1-13, October.
    12. Wei-Min Lin & Keh-Chin Chang & Yi-Mei Liu & Kung-Ming Chung, 2012. "Field Surveys of Non-Residential Solar Water Heating Systems in Taiwan," Energies, MDPI, vol. 5(2), pages 1-12, February.
    13. Liu, Shih-Yuan & Perng, Yeng-Horng & Ho, Yu-Feng, 2013. "The effect of renewable energy application on Taiwan buildings: What are the challenges and strategies for solar energy exploitation?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 92-106.
    14. Abd-ur-Rehman, Hafiz M. & Al-Sulaiman, Fahad A., 2016. "Optimum selection of solar water heating (SWH) systems based on their comparative techno-economic feasibility study for the domestic sector of Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 336-349.
    15. Wei-Min Lin & Keh-Chin Chang & Kung-Ming Chung, 2019. "The Impact of Subsidy Programs for Solar Thermal Applications: A Case Study for a Remote Island," Energies, MDPI, vol. 12(20), pages 1-11, October.
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    17. Kuen‐Hung Tsai & Yi‐Chuan Liao, 2017. "Innovation Capacity and the Implementation of Eco‐innovation: Toward a Contingency Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 1000-1013, November.

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