Solar District Heating Market Size
Imagine a bustling community where every home and office is cozy and warm, thanks to a special way of heating called solar district heating. This system harnesses the power of the sun to generate heat for multiple buildings at once, like a neighborhood-sized heating blanket. Solar panels, like giant suncatchers, are placed on rooftops or open fields. They soak up the sun's rays and turn them into heat. That heat is then stored in a special heat bank, like a giant thermos. When it's time to warm up those buildings, the heat is sent through a network of pipes and heat exchangers, like a circulatory system for your community. It flows into homes and offices, keeping everyone toasty. This clever system has been quite popular, with a market worth about $4.9 billion in 2022. And it's only expected to grow even more, with a projected growth rate of 8.5% every year until 2032. Why? Because it's a sustainable and efficient way to keep communities warm and cozy while being kind to the environment.
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Strong policy incentives along with supportive regulatory frameworks for the deployment of renewable energy systems will boost the solar district heating market growth. Stringent energy-efficiency protocols along with promising regulatory reforms have instituted a favorable business scenario for the industry players. European countries including Denmark, Germany and France are actively promoting the usage of solar district heating under their national strategic energy planning programs. DH technology manufacturers across the region have been strengthening their market presence through extensive R&D activities and inorganic strategic implications.
Solar District Heating Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2022 |
| Solar District Heating Market Size in 2022 |
USD 4.9 Billion |
| Forecast Period |
2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR |
8.5% |
| 2032 Value Projection |
USD 10.5 Billion |
| Historical Data for |
2019 to 2022 |
| No. of Pages |
300 |
| Tables, Charts & Figures |
999 |
| Segments covered |
System, Application, Region |
| Growth Drivers |
- North America
- Strict regulations towards carbon emissions
- Europe
- Government norms toward zero emission buildings
- Growing focus toward the adoption of sustainable energy
- Asia Pacific
- Rapid urbanization and industrialization
- Regulations toward sustainable energy
|
| Pitfalls & Challenges |
|
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COVID-19 Impact
The solar district heating industry was hit hard by supply chain problems during the pandemic. This made it tough to get solar panels and other parts needed to build these systems. Some projects were delayed, and others cost more to build. But the pandemic also caused energy demand to drop, especially in businesses that had to close or slow down. This hurt the business case for solar district heating in some places. Despite these challenges, there are still good reasons to be optimistic about the future of solar district heating. Governments are increasingly supporting these systems, and there's a growing need to cut greenhouse gases and switch to renewable energy. This should help the industry grow in the years to come.
Solar District Heating Market Analysis
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Neighborhoods are warming up to a new heating solution! Small-scale heating systems for homes, businesses, and even small factories are expected to become more popular over the next decade. These systems use a range of heat sources like sunshine, industrial waste heat, and plants - kind of like nature's furnace! Tier II and III cities, which are smaller and less developed, will likely see a lot of growth in these systems. And with stricter rules on pollution and a push towards greener ways of making heat and energy, solar district heating will likely become even hotter.
The large-scale solar district heating systems have been gaining importance in the recent years, owing to the increasing investments toward industrial and commercial establishments. These systems are usually built in district and block heating systems including multifamily buildings, hotels, industries, sports, and data centers. Furthermore, these systems have lower specific and alternative cost when compared with small systems. The rapidly changing surface temperature across the regions along with favorable regulatory norms toward sustainable DH technologies will boost the solar district heating market demand.
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The residential solar district heating market accounted for over USD 2 billion in 2022. Increasing internal heat loads and the introduction of sustainable building solutions will boost the business environment. The acceptance of new products will also be aided by the development of temperature control systems, ease of parity, and high operational standards. Moreover, rising investments toward developing energy-efficient structures along with the robust expansion of heating networks across single-family houses and apartments will augment the business outlook.
The increasing floor space across commercial establishments to provide sustainable heating solutions and to meet the high energy demands has significantly strengthened the product adoption. Enormous potential for the utilization of SDH systems in Denmark, Germany, France, and Italy owing to fluctuating temperatures will complement the business growth. With technological advancements and continuous innovations, there has been a paradigm shift toward the smaller cities and towns for the adoption of sustainable DH systems across the residential and commercial areas
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The Europe solar district heating market size will account for 185 PJ by 2032, attributed to government initiatives aimed at reducing carbon emissions and achieving the region's climate goals, such as the EU's target for district heating systems to meet 30% of the region's heating demand by 2030. Additionally, favorable government policies and increasing concerns around carbon emissions are expected to drive further growth in the industry. The increasing use of various renewable energy resources for heat generation is also anticipated to contribute to the market growth.
The increasing demand for automation and controls in flexible electrical systems and thermal storage will boost the solar district heating market size. Furthermore, the introduction of government standards, including zero-emission building targets, will encourage the product development. For instance, Denmark has set a target of a 70% reduction in emissions from new buildings by 2030. The shift towards sustainable energy sources in line with government efforts to mitigate climate change has created a favorable business environment in the region. Additionally, technological advancements and increased investments in research and development have led to the industry expansion.
Solar District Heating Market Share
The key players operating across the solar district heating market include
- Aalborg CSP
- Savosolar
- Vattenfall AB
- STEAG GmbH
- Statkraft
- Shinryo Corporation
- NRG Energy, Inc.
- RWE
- Ramboll Group A/S
- Ørsted A/S
- LOGSTOR A/S
- Keppel Corporation Limited
- Korea District Heating Corporation
- Göteborg Energi
- KELAG Energie
- Wärme GmbH
- Fortum
Solar District Heating Industry News
- In February 2021, Kelag Energie & Warne came into a heat delivery contract with Greenonetec for a solar district heating plant located in Friesach, Austria. This 4 MW project is worth USD 2.24 million. Which will be the largest turnkey project across the nation. This project enabled the company to expand its market presence across solar district market.
- In May 2021, Valmet supplied an automation system to Fortum’s district heating business in Finland. This technology will allow Fortum to build & enhance its district heating in Espoo, Kirkkonummi, and Kauniainen with the help of better management services and lead to lower C02 emissions & flexibility. In addition, it will strengthen the automation of district heating systems to accomplish the company’s network.
The solar district heating market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘PJ’ & USD’ from 2019 to 2032 for the following segments
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Market, By System
- Small Systems
- Residential
- Commercial
- Industrial
- Large Systems
- Residential
- Commercial
- Industrial
Market, By Application
- Residential
- Commercial
- College/university
- Office buildings
- Government/military
- Others
- Industrial
- Chemical
- Refinery
- Paper
- Others
The above information has been provided for the following regions and countries
- North America
- Europe
- Germany
- Poland
- Russia
- Sweden
- Finland
- Italy
- Denmark
- UK
- Slovakia
- Austria
- Czech Rep.
- France
- Asia Pacific
