Currently, the economy of Middle Eastern countries relies heavily on fossil fuel sources. The direct and indirect adverse consequences of fossil fuel utilization for power generation enforce the region’s countries to raise the share of renewable energy. In this context, various incentive policies have been developed to encourage the residential and industrial sectors to support a portion of energy needs through renewable energy resources. In this case, a solar water heating system (SWHS) as an application of solar thermal technology provides some of the heat energy requirements for domestic hot water (DHW) and space heating, supported conventionally by electricity or natural gas, or even other fossil fuels. This paper reviews the feasibility of the SWHS in the Middle East region from technical and economical standpoints and investigates some of the progress, challenges, and barriers toward this market. The pay-back times and CO2 emission reduction under different incentive frameworks and configurations of each system have been assessed in this context. Furthermore, the advantages and weaknesses of the SWHS in several countries have been reported. Finally, various guidelines have been proposed to enhance the development of this technology.Intelligent Electrical Power Grid
