In Bolivia, it is estimated that solar thermal installations will increase at a pace of around 500 per year across the country.

This growth is obviously too slow considering Bolivia’s solar potential.

Its radiation is so high that many applications of solar thermal energy could be used.

However, the domestic market is emerging and there are few companies dedicated to this technology.

The most active area is located in the central region of Cochabamba where there are 5 companies that are mainly engaged in thermosiphon equipment installations.

In Bolivia, energy is only available to a small proportion of the population. Broad sectors of poor people in rural areas are not connected to the public electricity network.

The electricity and gas distribution network do not reach these remote regions because this expansion would not result in profits for suppliers.

The use of solar thermal energy has an enormous potential for providing hot water to communities in the highlands, where there are very low temperatures that adversely affect the region’s production and people’s daily activities.

Weather conditions in the Bolivian highlands are extreme due to night frosts. Water from pits or pipes have a very low temperature and therefore it needs to be heated by electricity or gas for people’s personal hygiene and for washing clothes and various items.

As Bolivia is located near the Equator, solar radiation is very high and with no variation between summer and winter periods. Therefore, there are ideal conditions for using solar energy in water heating.

From all of the above, it is clear that the key to overcoming this situation is to stimulate the solar thermal products market growth through policies that affect both supply and demand in the departments of La Paz, Oruro and Cochabamba.

This would contribute to poverty alleviation, environmental conservation and natural resources protection.

From a business point of view, this would encourage the establishment of many companies in the area.

The spread of this technology is currently limited in Bolivia by:

– Technological shortcomings

– Lack of means for certification rating

– Inefficient structures in service, sales and maintenance

– Distrust of potential users

– High production and services costs originated in limited production and sales volumes

– Poor access to financing

– Lack of state incentives (financing, subsidies or tax exemptions).