Last year, although 99.32 percent of the energy expended on the island was imported, the nation's solar energy industry shone: its total production value more than doubled from US$700 million in 2006 to US$1.75 billion. In terms of total production output, the island's photovoltaic industry now ranks fourth in the world.
To continue this momentum, the Bureau of Energy under the Ministry of Economic Affairs announced the "solar community" initiative March 28. The program offers subsidies for the installation of photovoltaic power systems in complexes consisting of 15 or more houses or apartment buildings accommodating a minimum of 120 households. The total capacity of installed solar systems must be at least 40 kilowatts peak so that the community is capable of meeting its own power needs. The maximum subsidy per kilowatt peak is US$5,000.
Though solar communities are expected to generate their own power during sunny weather, the government's plan calls for them to be connected to the national electricity network operated by the state-owned Taiwan Power Co. This means that they can draw power from the grid on cloudy days, or contribute to the energy supply when producing more electricity than needed.
Lin Jin-zai, chairman of Julin Building Co., was so taken with the bureau's scheme that he decided to build the nation's first solar community in Homei Township, Changhua County.
"When a community of 15 houses we were constructing was near completion last year, Chairman Lin learned from the media that the government was preparing to launch an initiative to subsidize 'solar communities,'" said Lin Hui-shuang, the building company's operations manager. "He collected news reports and called various institutions, including the Academia Sinica, for further information."
Lin Jin-zai was an early adopter of photovoltaic technology, having installed a solar water-heater in his home before most people in Taiwan even knew about such devices nearly three decades ago. A fan of the Discovery Channel, he is particularly fond of programs on environmental issues and has long been concerned about the problem of global warming.
"By the time Chairman Lin learned about the government's 'solar community' initiative, prices for our houses had already been published--so we could not add the cost of the photovoltaic equipment to the list price," said Lin Hui-shuang.
"Even with the government subsidies, we still had to cover some of the cost of this equipment. And that means our profit on the complex will be reduced," added the operations manager.
The bureau would not reveal how much Lin Jin-zai's company paid for the equipment, but from the amount of subsidies it has granted to the construction firm the figure has been estimated at US$70,000.
The houses have proven popular, with 10 of the 15 already sold and the new owners planning to move in next January. Earlier this month, Bureau of Energy Director-General Yeh Huey-ching paid a visit to the complex and said it would be used as a model community to demonstrate the application of renewable energy.
The energy bureau also plans to install photovoltaic-powered public facilities, such as streetlights and bus shelters, in the nation's solar communities.
To promote these projects, the bureau has set aside an annual budget of US$6 million for subsidies. "We need the cooperation of city and county governments to spread this idea. It would be helpful if local governments could install photovoltaic systems in public places to educate people about solar energy," a bureau official said.
According to the official, a number of local governments have submitted proposals to construct solar communities. "Usually we have to spend quite a few months on consultation to determine whether these projects are feasible," he said.
In addition to the "solar community" initiative, the government has implemented a number of other solar energy schemes with great success. For example, a research paper published by the National Cheng Kung University Research and Development Foundation last year found that state incentive programs were a key reason behind the popularity of solar water-heaters.
The nation's first incentive program to encourage the installation of solar water-heaters took place between 1986 and 1991. In 2000, the Bureau of Energy revived the scheme and authorized the university foundation to evaluate and process applications.
The foundation reported that the area of solar collectors installed had grown by an average annual rate of approximately 8.8 percent during the second promotional period. By 2007, the total area of solar collectors installed in Taiwan had reached more than 1.65 million square meters. The installation rate by household in the domestic sector is estimated to be about 4 percent, said Chung Kung-ming, a research fellow with the foundation.
Due to the popularity and effectiveness of this program, the government has extended it twice so that it will continue until at least 2012. Users received a subsidy of between US$30 and US$50 per square meter of solar collectors installed. The foundation predicts that 20 percent of households will use solar water-heaters by 2020.
Inevitably, however, the government's efforts to increase the use of solar energy have encountered some setbacks.
Kaohsiung City, the second largest metropolis in Taiwan, is located in the tropics and receives between 2,000 and 2,500 hours of sunlight each year, compared with 1,000 to 1,600 hours in Taipei City. Known as the country's "maritime capital," Kaohsiung has also aspired to make the most of its sunny climate and transform itself into a "solar capital."
Starting in 2003, the Kaohsiung City Government began to install artistically designed solar-powered streetlights, some with leaf- or star-shaped panels, on several of the city's main boulevards. However, local administrators were forced to cancel the project after three years, as it proved unworkable.
"In a metropolis like Kaohsiung, streetlights have to be on from 7 p.m. to 5 a.m. or 6 a.m.; it's a long period of time," said an official at the Maintenance Office under the city government's Bureau of Public Works.
"The difficulty with the streetlights is that their solar panels are not big enough and the capacity of their solar cells is too small. The electricity they generate is not sufficient for them to remain on for so long, so they have to draw power from the city grid," added the official.
But the city's desire to explore this renewable energy source has by no means been weakened by one failure.
Kaohsiung is constructing a US$170 million stadium that will be used during the 2009 World Games. Eighty percent of the structure, which will have a maximum seating capacity of 55,000, has been completed. In an effort to reduce its power consumption, the building's roof will feature 8,800 solar panels covering an area of 14,155 square meters. The system is expected to generate more than 1.1 million kilowatt-hours per year.
"When the stadium is completed, it will not only be the largest facility of its kind in Taiwan but will also boast the largest roof-mounted array of solar panels on the island," said an official at the city government's Construction Office.
"A demonstration screen will be fitted inside the stadium when it is completed to show visitors how the solar-electric system works. This will give the public a better understanding of the role renewable energy has to play in protecting the environment," the official said.
Write to Melody Chen at melodychen@mail.gio.gov.tw