Solar Water Heating for China’s Rural Population

On a recent visit to Shen Si, in China’s Zhe Jiang province, we saw how the rural community is grasping the chance to save money on their water heating bills. Across the island, cheaply made solar water heating (SWH) units, fitted by cheap local labour, are enabling relatively poor Chinese the chance to play their part in reducing the carbon foot print – but being green has nothing to do with their motivation.

Local government grants and loans, made available to help regenerate the island, have been employed to renovate existing “nong jia” (literally farmer’s houses) into guest houses. The guest house owners are only interested in the energy savings, and hence cost savings, that the SWH units represent. The Chinese people’s ever-present drive to save money and cut costs has ensured that some of the government grant has been spent on money-saving solar water heaters. While it is true that China is the most polluted country on the planet, it is also true, that by way of economic development and keen cost cutting, China and the Chinese people are doing much more than most to utilise green-methods in their lives.

The Washington based Worldwatch reports that China is also the biggest producer of solar water heaters – hence the affordable price of between $250-$400 dollars. The drive to be green is driven by government policy, that has some incidental green implications, and Chinese people’s core needs – to put themselves first, save money and improve theirs and their family’s lives.

As with most things Chinese, the numbers are staggering. Currently no less than 30 million Chinese households use the solar energy to heat their water. Solar expert John Perlin reports that by 2010, the sum of the solar water heaters installed in China will equal the thermal equivalent of the electrical capacity of 40 large nuclear power plants. Official numbers indicate that there are currently more than 5 thousand SWH manufacturers, while other websites report 6-7 thousand water heater producers. However, typical of China’s fragmented industries, SWH companies with an annual output value of more than 10million CNY number less than 100. Major players include Tsinghua Solar Systems Ltd., Shangdong Yi Jia Neng solar energy Ltd, and Huang Ming Solar Energy Group Co., Ltd, to name but a few. Such intense competition continues to drive prices down globally. Beijing Solar Temple Industrial Co., Ltd. , reports that they have reduced the production time of SWH panels to 30 seconds per unit. This kind of production efficiency increases supply and drives prices down.
On June 10, 2009, rather than letting free market effects take place, the Chinese government reported in the People’s Daily a so called “solar energy household appliances going to the countryside” programme wherein Chinese companies had to impress officials and bid the lowest prices for their units. In all, 92 Chinese manufacturers of SWH units successfully impressed officials and have been granted special access to fast-track units to rural homes. The bidding process that took place as part of the scheme was the governments own way to ensure prices were brought down. The government will give 13% of the cost of each unit for every installation in selected rural areas.

By putting the mass-production of this green technology into overdrive, the Chinese have comoditised the SWH and PV unit market. Unintentionally acting in the interests of us all, they are making renewable energy more affordable even to some of the poorest people.

Also published by James Westwood on Bambooleaf.org