RESIDENTIAL SOLAR HOT WATER
HOW YOU BENEFIT FROM YOUR SYSTEM
Heating water in your home is one of the most energy consuming demands you have.
The cost to heat water in your home is likely to be 15 - 25% of your total energy costs; it will be higher if you have more than four people in your home. This may mean that almost half of your electric bill, or more than 40% of your gas or oil bill, will go towards your domestic hot water costs.
Solar water heating is the easiest, most straightforward way to use the sun to save both energy and money.
A residential solar hot water system will reduce the energy you require to heat your water anywhere from 60 to 80%.
Generous Federal Tax Credit
Your solar hot water system is eligible for a Federal Tax Credit of 30% of the installed cost of the system, up to a maximum of $2,000. This will substantially increase the return on your investment in the system, as shown in the following example.
A typical solar hot water system catering for a two to four person household...
Cost to install system (approximate) |
 |
$7,200 |
|
| Deduct Federal Tax Credit | $2,000 | ||
| Net cost of system | $5,200 | ||
|---|---|---|---|
| Annual savings | $ 600 | ||
| Return on investment ($600/4,550) | 11.5% | ||
Your system is a long-term investment that will provide the following benefits over many years:
- Free hot water, or greatly reduced utility bills, saving you $100s annually – this can be even more significant if your utility company has a tiered rate structure, charging more at higher levels of usage.
- A significant return on your investment
- A hedge against increased energy prices – once installed your system will be producing all or some of your hot water at no cost.
- The use of clean, non-polluting renewable energy – it is estimated that, over a 20 year period, a solar hot water system that replaces an electric system will avoid 50 tons of carbon dioxide emissions. Carbon dioxide traps heat, contributing to the global warming.
- You are contributing to a reduced dependence on foreign oil.
- The National Remodelers’ Association has stated that a solar hot water system raises the value of your home by the entire cost of the system.
