Are Solar Water Heaters Worth It? Here’s What You Need to Know…

That’s about double the initial cost of gas or electric options, including heat pump water heaters, according to Fixr.com. The average cost of a solar water heater installed in tax credit applications was about $6,000according to the recently published report 2023 IRS data.

Different types and sizes of systems have widely varying prices. Small passive systems that heat water directly, do not need a pump and are equipped with a 60The one-gallon tank will be on the lower end of the spectrum, while active, freeze-resistant systems with a 120-The 1 gallon tank will be top of the line.

The premium for solar water heaters has remained ​““stubbornly high,” says Shawn Martin, vice president of technical services for the Solar Rating and Certification Corporation (SRCC), which certifies the performance of solar water heaters. ​“They were unable to achieve the kind of economies of scale that could have actually driven prices down.

Fortunately, the 2022 The Inflation Reduction Act extended a 30 percentage tax credit for solar water heaters assessed by the SRCCand local incentives can further reduce costs. In Texas, Austin Utilities offers a rebate of up to $1,200 for solar thermal systems, for example. You can search the database of state incentives for renewable energy & Efficiency (DESIRE) to benefit from discounts in your area.

In locations where fuel costs are high, solar water heaters can be very cost-effective. Systems typically have a payback period of five to 10 In Hawaii, where electricity rates are the highest in the country, it is possible to break even in less than three years, Giese says. Thanks to free solar energy, this type of water heating is also immune to fossil fuel shortages and price increases.

However, the savings you make will depend on how much hot water your household uses, how much sunlight you get, how well your system performs, and what you would pay if you used only gas or electricity to heat your water.

The solar collectors themselves are also quite durable: they can last 20 years — but the hot water tank will need to be replaced sooner, Giese says. Like other tank-type water heaters, it tends to go out after about 10 has 15 years.

So, should you go solar when looking for a new water heater?

This is a tricky question that can only be answered on a case-by-case basis. If you live in a place with high energy prices, like Hawaii or California, And you do not intend to install photovoltaic panels at home, opting for a solar water heater can be a good option. But if you have cheap electricity or if you have PV If you have panels on your roof or are planning to install them, it might make more financial sense to reduce your water usage with a heat pump option.

A 2020 A study by Flagstaff Research found that for Californians who get solar power PV To power their home, it may be cheaper to extend the grid to cover a heat pump water heater than to install a solar-powered water heater. However, the study was conducted when the economics of rooftops PV The state’s panels were better, said Adam Chrisman, president of SunEarth Inc. (a Solaray subsidiary).

You could opt for the double whammy of solar energy PV painting And a solar water heater. Some homeowners install both on their roof.

Tips for purchasing a solar water heater

As with other home energy projects, be sure to get multiple quotes from contractors for any type of water heating system you’re considering, whether it’s a solar water heater or a heat pump water heater, recommends Kyle Gluesenkamp, ​​a thermal energy storage expert at Oak Ridge National Laboratory. You’ll be able to compare payback periods and break down estimates of operating and maintenance costs and how much you’d spend if you stuck with the type of water heater you already have. If you’re feeling particularly nerdy, you can estimate the payback period yourself with this calculator from DOE.

Due to the complexity of installing a solar water heater on the roof, ​““You need to find an installer who really knows the technology and is there to advise you,” says Martin. ​“They don’t require much maintenance once they’re up and running, but they do need to be operated properly.

You can then let your solar hot water flow.