Solar District Heating Market 2023 By Top Trends, Growth Outlook & Forecast To 2028

Thanks to the growing stringency of energy efficiency norms across the globe, the solar district heating market forecast has been gaining momentum.


Cindy Chan

14 days ago | 3 min read

Thanks to the growing stringency of energy efficiency norms across the globe, the solar district heating market forecast has been gaining momentum. As a growing number of universities, industrial facilities, and residential spaces have been installing these systems for efficient transfer of heat, manufacturers have been catering to the individual demands of these end-users.

The reliance on renewables has grown considerably for powering these systems since the European Commission enforced the renewable energy directive in 2018. According to this directive, all member states are expected to increase their renewables’ share across the heating and cooling sector, especially across waste heat in district heating and cooling systems. 

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By 2028, the solar district heating market size will surpass USD 4 billion, according to a recent report by Global Market Insights Inc. Top manufacturers of solar district heating systems include Korea District Heating Corporation, Shinryo Corporation, Ramboll Group, Fortum, Keppel Corporation Limited, Statkraft, NRG Energy, Inc., and Vattenfall AB. These companies have been strengthening their marketing strategies through higher social media engagement, R&D investments, partnerships, acquisitions, and mergers. 

Increased share of renewables in Germany’s energy mix

Germany district heating market share is likely to grow at a significant CAGR through the next six years, as urban settlements have been proliferating at a substantial rate over the past decade. According to Germany Association of Energy and Water Industries (BDEW), the renewables’ share in German district heating industry increased to 17.8% in 2020 from 7.8% about a decade ago.

More than 126 billion kilowatt hours of heat were produced across long-distance applications across the country of which 22 billion kWh was from renewables. The growing focus toward energy transition has been powering the industry outlook. The government has been supporting the efforts of the industry players to promote dependence on green district heating solutions, especially across residential areas where space restrictions are a major challenge. 

Progressive incentives by French government to power industry forecast

France solar district heating market has been recording a higher revenue, as government entities across the nation have been increasing the production of renewable energies, in keeping with the climate strategy roadmap toward carbon neutrality. During the COVID-19 health crisis, the French electricity market suffered substantially in 2020. Since 2021, a rebound of carbon emissions and electricity consumption has been observed, influencing a surge in energy consumption.

The government has been offering progressive incentives toward photovoltaic and on shore wind projects. Since a new order introduced in September 2021 encouraging foreign investments is being considered for approval, the renewable energy sector is expected to thrive, adding to product use.

Green heating market in U.K. picks up pace as green heating projects garner fresh funds

In March 2022, the government of England announced that it will allocate about 288 million euros for greener heating across the nation. The funding scheme is expected to roll out next-generation heat network projects for cutting down carbon emissions. This initiative will ensure that clean heating will be delivered to public buildings, offices, and homes over the next three years.

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The deployment of green solar heating systems will play a crucial role in United Kingdom’s net zero future. As such, the UK solar heating systems market share will continue to grow as multiple businesses and properties have been adopting these systems. 

Since heat in buildings is one of the major sources of carbon emissions in the U.K., accounting for nearly 21% of the total emissions, low-carbon heating solutions are being prioritized. Presently, there are more than 14,000 heat networks catering to the needs of over 480,000 consumers throughout the nation.

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Cindy Chan







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