A method is presented for the estimation of solar energy and market po
tential for water heating in the residential sector. The model was dev
eloped under a Geographical Information System and provides the tools
to handle the spatial and time discrepancies of solar radiation and en
ergy demand. A geographic database with climatic data is used for esti
mating efficiencies and monthly/annual coverage of water heating load.
Financial analysis is conducted on the basis of the energy production
cost and the Net Present Value of the investment. Different financial
scenarios are considered and the expected energy yields from a large-
scale deployment of solar thermal systems in the residential sector of
Greece are assessed. (C) 1998 Elsevier Science Ltd. All rights reserv
ed.