Solar Water Heaters - Solar Hot Water Heating Systems

Will solar hot water systems work in the Northeast?
Absolutely - homeowners and businesses in the Northeast having been using the sun’s free energy to heat their water for over 30 years! Our glazed, closed-loop systems are designed to operate in this climate. On average, a solar hot water system will account for about 80% of your hot water needs – 100% in summer months, 75-80% in late spring/early fall, and 50% in the colder months.

How does solar water heating work?
There are a few types of solar water heating systems on the market. The best system for a given property depends largely on the climate and use. We generally recommend an active, closed loop system for customers in the Northeast. This type of solar hot water system provides the best balance of efficiency and cost in our climate – in particular, active, closed loop systems are designed to prevent freezing in the winter months. Below is a short summary of how an active, closed loop solar hot water heater operates:

1. Cold city or well water is fed into the solar hot water tank.

2. A heat exchange fluid (a mixture of food-grade glycol and water) is circulated through the solar collectors to heat in sun. Note that in order to prevent freezing, the potable water is not circulated through the solar panels.

3. Once heated using the sun’s radiant energy, the heat exchange fluid is circulated to the heat exchanger in the solar water tank. Here the warmth from the heat exchange fluid passes to the potable water in the solar tank.

4. The warm water is then circulated for use in showers, laundry, etc.

5. In the event the sun does not heat the water to an adequate temperature, an automated control system will circulate the water through the back-up heat source for additional heating.

How much does it cost and what will I save?
The price of a solar water heater varies significantly based the size of the system, which is determined by the number of people using hot water and the pattern use. For example, a family of four that all take morning showers while the dishwasher is running will require a larger system than a couple that uses hot water evenly over the course of the day. A good rule of thumb is that the average person uses 20 gallons of hot water per day.

The out-of-pocket cost for a solar water heater ranges from $8,000 - $9,000, including the collectors, solar water tank, pump, ancillary materials, installation, and a ten year full/lifetime limited warranty. This cost is before tax incentives and utility rebates, which vary based on the location of the property (see Tax Incentives & Rebates below for additional detail). Depending on where you live, rebates and tax incentives may lower your net cost to $4,000 - $5,000!

In the Northeast, most customers will generate an annual return of 12%-15% on their investment in a solar hot water heater - a superior return to almost any stock or real estate investment! In order to estimate your return on investment, add your last twelve utility bills together to determine your annual utilities cost. Now multiply that number by 30%. That is the average amount our customers spend to heat their water. Next, multiply your hot water spend by 80% - the average percentage of hot water heating for which solar will account. Take the result and divide by the net investment to arrive at your estimated annual return.

Better yet, click here or call us today to schedule a free in-home estimate and let one of our professional sales technicians put together a customized analysis at no cost to you!

Tax Incentives & Rebates
All solar hot water systems are eligible for a federal tax credit of 30% of the system price, with a $2,000 cap for residential systems and no cap for commercial systems. Note that this tax credit is superior to a deduction – you actually subtract the full credit from the taxes you owe.

In addition to the federal tax credit, the following credits are available in each of the states we service:

New York
• 25% state tax credit for residential solar hot water systems, capped at $5,000
• Sales and property tax exemption
• KeySpan natural gas customers 15% rebate, capped at $1,500 (expires 4/30/08)

Connecticut
• State loan program – loans of up to $25,000 available for solar hot water systems, interest rates of 1%-6% and 10 year repayment schedules
• Sales and property tax exemption

Massachusetts
• 15% state tax credit, capped at $1,000
• Sales and property tax exemption
• State loan program – loans of to $15,000, 0%-3% interest, and 7-year terms
• KeySpan natural gas customers 15% rebate, capped at $1,500 (expires 4/30/08)

Schedule a free in-home estimate today and let one of our help technicians walk you through the many benefits of your new solar hot water pool heating system!

Please visit our solar hot water heating systems faq section for more answers to your questions.