Solar-powered heating systems are gaining traction worldwide as governments promote a shift from fossil fuels to renewable energy sources. Consumers are also eager to lower their utility bills. Similar to residential solar panels that generate electricity, solar heaters are being installed in homes globally, both through government initiatives and private efforts.
These solar water heating systems consist of a storage tank and a solar collector. There are two main types: active and passive. Active systems utilize circulating pumps and controls, while passive systems do not. Within active solar water heating, there are direct circulation systems, which pump household water through the collectors, and indirect circulation systems, which circulate a non-freezing heat-transfer fluid through collectors and a heat exchanger. The indirect systems are typically more effective in colder climates.
Passive solar water heating systems tend to be less expensive than active ones, although they are not as efficient. However, they are often more reliable and longer-lasting. There are two main types of passive systems. The integral collector-storage system features a storage tank covered with a transparent material, allowing the sun to heat the water before it is delivered to the plumbing. The thermosyphon system heats water in a roof collector before sending it to the plumbing when a hot water faucet is opened. Most of these systems have a 40-gallon capacity.
Because they rely on solar energy, these systems usually need a backup for cloudy days and periods of high demand. Backups can be conventional storage water heaters or rooftop tanks with thermosyphon systems. Solar water heaters require maintenance every three to five years, and some parts may need replacement every two to ten years. Once installed, these systems can significantly reduce utility bills, especially in areas with high solar exposure.
In Europe, Cyprus leads in the use of solar-powered water heaters. This eastern Mediterranean island is harnessing its favorable weather to support a green transition and lower consumer energy costs. Approximately 93.5% of households in Cyprus now use solar water heaters, helping the country surpass its renewable energy targets for heating and cooling.
Charalampos Theopemptou, Cyprus’s environment commissioner, noted, “There are many areas where Cyprus has not achieved greenhouse gas emission goals… But in terms of renewable energy resources for sustainable heating and cooling, we’ve easily met the target due to extensive use of solar water heaters for many years.”
Cyprus has utilized solar water heaters since the 1960s, putting it ahead of many nations. The technology gained popularity because it requires only solar panels, a tank, and copper pipes—along with suitable weather. Cyprus enjoys over 300 sunny days annually, making it ideal for this technology. The expansion of solar heaters has also fostered a domestic manufacturing industry and created numerous jobs. While installation costs have risen, EU-funded grants are available for households wanting to install solar heaters.
In the Middle East and North Africa, solar-powered water heaters have surged in popularity. In Jordan, Energy and Mineral Resources Minister Saleh Kharabsheh recently launched the second phase of the government’s solar heater subsidy program, covering 30% of installation costs. This phase aims to support 5,000 solar systems at a total cost of up to $4.2 million. The previous phase saw 3,500 solar water heaters installed.
Meanwhile, in Egypt, three out of four households depended on butane cylinders just a decade ago due to limited access to natural gas. In 2023, Egyptians consumed approximately 800,000 butane cylinders daily, many subsidized by the government. This situation has prompted many households to invest in solar-powered water heaters. The solar water heater market in Egypt is projected to exceed $100 million in 2024, bolstered by the UNIDO-backed Solar Heating in Industrial Processes (SHIP) program. Egypt now hosts 11 solar heater manufacturing operations and seeks to strengthen ties with Tunisia and Jordan to expand the market further.
The global solar water heater market value is expected to rise from $4.26 billion in 2023 to around $6.18 billion by 2028, with a compound annual growth rate of 7.4%. The Asia-Pacific region is anticipated to be the fastest-growing market during this period. Growth will be driven by technological advancements, including the integration of predictive analytics and artificial intelligence to enhance heater performance. Government policies aimed at moving away from fossil fuels, national and regional grants for disadvantaged communities, and increasing consumer demand for lower energy bills will further fuel the market’s expansion.
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