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Is Solar Hot Water Really Worth The Cost?

Going solar has been widely promoted as the environmentally friendly energy alternative that will put money back in your pocket. But is solar hot water really worth the initial outlay for the purchase and installation of this technology?

Considering that the solar hot water heater in your home is responsible for a large chunk of your monthly power bill, solar water heaters are definitely a way to save money. However, it may take some time before this savings covers the cost of the installation in the first place.

The average household will save between 50% and 80% on their monthly water heating costs. Be aware that this is only the portion of the power usage that is assigned to heating water and not the entire power bill. The saving is also greater if you are replacing a conventional electric water heating system rather than a gas heating system. Gas water heaters are more energy efficient and therefore less costly to run than electrical systems but solar water heaters are the cheapest to run.

Solar Hot Water

There are also additional incentives offered to promote energy efficiency in homes such as tax deductions for new or refinanced mortgages. This can save you an extra $3 to $5 every month.

The initial cost of a solar hot water system must also be factored into the equation. For new mortgages, the cost is included and adds between $13 and $20 to the monthly repayment. A saving in excess of this amount means that the water heating system is not just paying for itself but actually turning a profit.

For existing homeowners, the more costly the system that they install, the longer it will take to recover the cost in savings from the reduced power consumption and other incentives.

Either way, solar water heating is going to pay for itself and eventually begin turning a profit no matter how long it takes. So yes! Solar hot water is really worth the cost.