Policies and business models for solar thermal district heating systems

This report provides an overview of financing and investment schemes for solar district heating (SDH) systems. We analyse several support policies with the aim to draw lessons from them and in some cases suggest improvements. Moreover, we evaluate, discuss and propose business models for SDH systems. The purpose of this document is to evaluate and highlight ways to make SDH systems more business-appealing and to investigate how energy policy can act as an enabling factor for SDH systems aiming at a medium-term subsidyfree situation. In this report, the following policies are discussed: • Direct policies and instruments are used to support the deployment of renewable energy heating and cooling fuels, appliances, and products. Subdivided further are push policies (for SDH these push policies are applicable: building codes (including district heating), mandates, replacement strategies, blending mandates (a share of renewable heat in a DH network), pull policies that are relevant for SDH are regulatory and pricing policies, tradable certificates, instruments for self-consumption and measures to support voluntary programmes, and fiscal & financial measures for SDH could be tax incentives, subsidies, grants and loans. • Integrating policies for SDH refer to system flexibility (in combination with thermal storage), increasing the renewable share of district heating networks, and incite sector coupling. • Enabling policies relevant for SDH may be policies levelling the playing field, ensuring reliability, targets, affordable financing, training and education, labour policies, innovation, and urban and health policies. • Policies which are both integrating and enabling. Of these mixed policies, SDH may have advantages from streamlined permitting procedures, participative and awareness programmes and integrated resource management.