SWOT Analysis
The SWOT Analysis serves as an assessment of the market for small-scale solar combi plus (SC+) systems and it is conducted through the identification of their strengths, weaknesses, opportunities and threats (SWOT).
Input for performing this analysis was, among others, obtained through the work done previously in the framework of the project. This included the examination and evaluation of the European market, not only regarding small-scaled chillers, but also considering competing technologies for heating and cooling of buildings. Specifically, a market survey was conducted on existing cooling systems for small scale applications as well as solar thermal installations, evolution and prospects in the European market, emphasizing on solar cooling. Moreover, a survey that was carried out through questionnaires targeting end users, illustrated their preferences, their views and awareness on renewable energy and efficiency and made it possible to form an overview of the market potential and relevant consumer of SC+.
The market analysis was followed by a study of the manufactured SC+ systems currently available in terms of component cost. This was followed by a complete economic analysis that compared different investment possibilities (one of which would be SC+) or examined the possibility of replacing an old system by a SC+ one. This economic comparison gave out significant conclusions concerning the technology’s economic viability, which were used for the SWOT Analysis. Finally, a statistical method called learning curve analysis provided the required framework in which the examined technology’s market has to be developed in order to achieve the desired market penetration.
In addition, a number of basic configurations were established and simulated under a variety of different combinations of parameters regarding location, application collector type, heat rejection technology, hot water storage volume and collector size. Those, which showed the highest energetic and cost efficiency for a broader range of applications, served as a model for the definition of the standard system configurations.
Based on the aforementioned principles and findings, a comprehensive SWOT analysis for SC+ systems was carried out, aiming at recognizing the advantages and the drawbacks of the technology, which are categorized as strengths to be enhanced and weaknesses to overcome respectively. Moreover, external factors related to the current market situation and the prospects for future developments were investigated with the aim of identifying the opportunities to be exploited and the threats that have to be avoided for a successful market penetration of SC+. The investigation of both strengths and weaknesses was conducted on a technical, cost-related and marketing basis, whereas the exploration of external factors, i.e. opportunities and threats, was carried out through consideration of technical, cost-related and market related issues, as well as financial incentives and legislation.
Schematic representation of the conducted analysis for the SC+ systems
Summarizing the outcomes of the SWOT analysis, it became evident that the SC+ system is advantageous in terms of technology, being an innovative and efficient system, with further prospects of improvement, due to its current market phase. Nevertheless, certain drawbacks of the technology as well as the threats met in the market should be individually addressed as problems.
More specifically, the increasing number of installations can play an important role to its further recognition, while the work accomplished in the framework of the SC+ project regarding the definition of standard system configurations will be the first step for a European – international standardization.
In terms of cost efficiency, the technology’s currently high capital cost is compensated by the relatively low operating cost. An added value to the economic feasibility of the technology is offered through various financial incentives currently in force in European countries and the overall European policy and strategy towards a sustainable future.
Further effort should be laid on both enhancing the technology and establishing a wider approval, through creating economies of scale as well as defining market goals, identifying competent promotion means and pushing it to the most promising market areas.
The complete report on the SWOT analysis can be downloaded from here.