AMMAN - Despite its potential to harness the Kingdom's abundant sunlight, solar technology has yet to adorn most rooftops of houses and factories across the Kingdom.
Solar energy is used for water heating, so households could potentially save money on diesel, which industry experts believe five per cent of Jordanians use. But the untapped potential lying in thermal heating and even electricity is causing many policy-makers, investors and citizens to give the technology a closer look.
"For a long time the technology was too expensive even for the United States to use on a large scale, so obviously an economy like Jordan is only beginning to adapt to recent advancements," Jordan Chamber of Industry Director General Zaki Ayoubi told The Jordan Times.
According to Ayoubi, fuel subsidies and preferential oil prices kept the private sector from investing in alternative energy sources. With the lifting of subsidies and rising oil prices combined with more affordable solar technology, he believes the practice will play a large role in the Kingdom's energy future.
Industries could use solar energy not only in production, but also in heating and cooling, which makes up a large part of operational costs, he said. The chamber will look into how each sector could apply latest solar technology in order to make suggestions and proposals on the national energy policy strategy, he added.
Engineer and specialist Ayman Maaitah, CEO of Millennium Energy Industries, said solar panel sales have been moderate, but stressed that the number will grow in the coming years.
"When people think of solar energy, they think of a low-level technology, but that just isn't true. We need to promote this fact so that solar energy is really considered in the national energy strategy," he said.
One square metre of solar panels can generate 1,100 watts per second, and 5.5 kilowatts per day, he pointed out. Current technology can harness 50-80 per cent of that energy, he said, adding that with the latest "evacuated tube technology", that number could eventually climb.
At current outputs, systems generate enough energy to pay off after one to two years, he stressed, noting that with rising diesel prices, that payoff period could be even shorter. Pointing out that the Kingdom spent JD1.9 billion on energy costs, nearly 20 per cent of GDP, Maaitah claimed that solar energy would not only halve this expensive, but provide the Kingdom with greater independence.
The engineer conceded that past problems with the technology has been storage, but new "evacuated tube" technology has solved that for the most part, with the ability to store heat in under floor units and hot water supplies.
Maaitah said imported solar energy technology is subject to 16 per cent sales tax and 23 per cent customs, passing nearly 40 per cent tax onto consumers, which he believes is holding back the technology.
He welcomed this week's decision by Prime Minister Nader Dahabi to consider exempting energy saving products from customs duties, but warned that this step alone would not be enough to launch the energy resource.
"Any subsidies or promotion should be given to quality and proven products. We don't want the public to purchase bad products and lose faith in solar energy forever," he said, adding that standardisation is key for the technology to thrive.
There are many reasons besides cost that have prevented many Jordanians from adorning their roofs with solar panels, according to Ammar Taher, vice president of the National Energy Resource Centre (NERC).
A major one is the inability of Jordanian houses to retain heat.
"It just doesn't make sense to use solar energy for an un-insulated house," Taher told The Jordan Times, adding that although residential buildings are required to have thermal insulation, most in the Kingdom's houses are built without.
Before installing solar energy, home owners must add thermal insulation, electric glazing, energy efficient lighting and other efficient household products in order to benefit from the technology, the NERC official stressed, adding that this is one of the reasons that in water heating, solar energy has only a 14 per cent penetration rate in the Kingdom.
Taher also disputed solar energy's ability to "payback" in one or two years, adding that the centre's research shows that it would take closer to six or seven years.
"Six and seven years to completely pay off an investment is still very good, but what if the system's lifespan is only 10 years? The current technology doesn't save as much money as it sounds," he stressed.
Current technology can, however, withstand the current cold front he added.
"This is another common misconception about local products," he said, adding that even older, locally made connectors can withstand Jordanian winters.
Taher stressed that it is not the cost that is preventing widespread commercialisation of the technology, but rather lack of investment, adding that long-term financing is needed much more than merely lifting subsidies.
He said that by the centre's statistics, five per cent of the population demanding simple domestic water heating would require five million square metres of solar panels by 2020. This would equal $1 billion in investment opportunities that could create local jobs and joint economic ventures, he stressed.
Despite the disputes over the amount of benefits solar energy yields, many seem to agree that the technology will play a large role in Jordan's current and future energy crunches.
"The whole region must undergo a transformation when it comes to energy, and investors want to be at the front of the line," investor Ennis Rimawi told The Jordan Times.
"When it comes to solar energy, the future looks bright," he added.
Figures speak for themselves
• Available solar energy is 23,000 times the consumption of electricity.
• One square metre panel can generate 1,100 watts per second and 5.5 kilowatts per day.
• According to Ministry of Energy figures, the Kingdom spent JD1.9 billion on energy costs in 2006, nearly 20 per cent of the nation's GDP. Over 50 per cent of energy was imported.
• Energy imports alone cost 10 per cent of the nation's GDP, and with energy demands expected to increase by 50 per cent in the next 20 years.
By Taylor Luck
© Jordan Times 2008
