The "big light and heat" era is on the horizon. China's solar thermal industry is in need of a clear transformation path, exemplified by initiatives like "Daguangre." At the 7th China New Energy International Summit Forum, Li Jun, Chairman of Four Seasons Muco New Oriental, emphasized that "big light and heat" aims to break through traditional boundaries, drive technological upgrades from low-temperature to medium- and high-temperature applications, and expand beyond hot water to thermal energy and even power generation. Additionally, an open and integrated industrial approach is essential, merging solar, wind, and other sectors to enable horizontal growth.
Solar thermal energy represents a crucial form of solar utilization, encompassing solar water heaters, concentrated solar power (CSP), and solar desalination. Currently, CSP and solar water heaters are the most mature technologies in this field.
CSP holds significant potential. Unlike the more widely recognized photovoltaic industry, solar thermal development has progressed steadily, though less in the spotlight. Data shows that after nearly a decade of rapid growth, China’s annual output in the light and heat sector has reached 100 billion yuan, with over 42 million square meters of solar collectors produced annually—accounting for more than 70% of the global total.
Another key difference is that 95% of solar thermal output is consumed domestically. As energy conservation becomes increasingly important, government policies are also supporting the industry. In the first half of this year, the Ministry of Industry and Information Technology issued guidelines promoting the healthy development of the solar water heater industry, emphasizing optimization and upgrading, as well as leveraging the scale effects of industrial clusters. By 2015, it aimed to cultivate three leading companies with annual sales exceeding 2.5 million units.
However, according to Li Jun, there is still vast potential in the medium- and high-temperature thermal energy and high-temperature thermal power sectors, which are valued at trillions of yuan. A recent foreign media report noted that global CSP installed capacity currently stands at 7.5 GW, with another 8.5 GW under development. Though this may seem small compared to PV or wind, it signals that the global solar thermal power industry is entering its third wave of growth.
For businesses, Li Jun believes that while "big light and heat" is the direction, the opening of the industrial chain will require companies to build a new ecosystem through integration, adopting fresh perspectives and formulating new strategies. At the corporate level, the immediate focus should be on solar thermal energy, combining technological innovation with multi-energy solutions to shift from single-source energy to a composite model, expanding from hot water to medium- and high-temperature thermal applications and even thermoelectricity. He highlighted that multi-energy composite technology and energy storage are critical steps in achieving industrial integration.
Li Jun also encouraged companies to explore a business model called "City Hot Water Bank." This concept can be viewed as a product, a solution, or a platform, eventually offering energy community services. Like the internet, it could include energy providers, architects, contractors, financing platforms, and energy users. It could also help promote the solar industry strategically.
From a market opportunity perspective, rural areas and third-tier cities have traditionally been the main battlegrounds for solar thermal energy. However, with rising urban energy demands and accelerating urbanization, the path for light and heat companies to penetrate urban markets is becoming clearer.
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