- Journal of Commercial and Management Studies, No. 4, October 2008, PP. 3-18. 1 Economic assessment of solar water heaters potentials in Egypt Mohamed A. Abdrabo  and Moataz Soliman  Abstract One of the prominent sources of energy is solar energy, which is not only secure, widely available, and carbon-free, but more of it strikes the earth every hour than is consumed on the planet in a year. Furthermore, recent technological advancements are driving solar energy costs down relative to conventional fossil fuel-derived energy. However, full utilisation of solar energy sources can only be attained through proper management of technical, economic, social and institutional aspects. This study intends to assess the economic potentials of solar water heaters (SWH) in Egypt. This is meant as an essential step towards developing proper policy measures for the realisation of the full potentials of this sector. In order to attain this objective the study begins by reviewing the status and benefits associated with solar energy utilisation globally. This is followed by studying the solar energy potentials and then analysing the market situation, in terms of demand for and supply of Solar Water Heater (SWH) field work covering the main SWH manufacturers in Egypt. Thereafter, the economic viability of SWH, compared to electric water heaters, is carried out. The study is then concluded by identifying possible policy relevant measures needed to enhance that market. It was found that despite the great solar energy potentials in Egypt, the market of SWH is quite limited, and is mainly stimulated by the demand generated by few high income clients as well as touristic resorts, especially in Sinai and the Red Sea. The productive sector of SWH is found, in terms of size and quality, to be fairly inadequate. Economic analysis of SWH suggested that they cannot compete with typical water heaters available in the markets on financial terms, particularly with low electricity prices and high up- front cost of SWH. It could be argued that, for SWH to attain their potentials there is a need to plan and implement technical, economic and institutional measures. On one hand, for the productive sector of SWH to come forcefully forward there is a need to develop systematic programmes for technical efficiency and invention promotion. On the demand side, there is a lack of awareness among the general public coupled with lack of any market incentive programmes for potential consumers. This, in addition to the subsidised conventional sources of energy, is limiting significantly the competitiveness of SWH in the market.  Corresponding author, Department of Environmental Studies, Institute of Graduate and Studies, University of Alexandria, Tel: (+2010) 5167400 , Fax: (+203) 541187 email: mabdrabo@hotmail.com  Department of Materials Science, Institute of Graduate Studies and Research, University of Alexandria, email: msoliman2@yahoo.com