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Q: How much does a solar water-heating system cost?
A: Unfortunately, there is no one answer to this question. The cost of a solar system depends on a number of factors, such as the size of the system and the particular system manufacturer, retailer, and installer. However, any solar rebates and other incentives available in your area will reduce that total cost.
For solar water heaters and space heaters, you will also be taking into consideration the price of the fuel used to back up the system. In most cases, you will have to add in the cost of supplemental natural gas or electricity to get a fairly accurate estimate of how much you can expect to pay for a solar system.
Installed costs vary widely, from $1,500 to more than $3,000. Some home builders are beginning to list solar water heaters as an option for their homes. Others include them as a standard feature in every home. In some cases, the builder or mortgage company may offer a lower interest rate when solar water heaters or other energy-efficient features are built into a new home, because the buyer can expect to save a significant amount of money on future energy bills. Although a solar water-heating system still costs more than a conventional electric or gas water heater, some states and utilities offer rebates that can reduce the total cost appreciably.
Other Resources: To learn more about financial incentives in your area, please visit the Database of State Incentives for Renewable Energy (DSIRE) and contact your State's Energy Office . One caveat: any time you work with a contractor, it is wise to check references.
Your U.S. Department of Energy (DOE) regional support office may also be able to provide guidance.
To find a solar energy system designer or installer in your area, please visit our solar yellow pages for a list of sources of solar professionals.
To learn more about financing opportunities, please see The Borrower's Guide to Financing Solar Energy Systems: A Federal Overview, September 1999 (PDF 501 KB).
Download Acrobat Reader.
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Q: How much money will a solar water-heating system save on my utility bill?
A: It is difficult to say how much you will save with a solar system. That depends on several factors, including how much you already pay your local utility for electricity or natural gas. You can ask your solar system professional how much heat your new system will produce on an annual basis and then subtract that number from your current annual consumption—the total amount of electricity and gas you use—to get an idea of how much you will save. Data on your current annual consumption should be available from your utility.
Other Resources:
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Q: How do I find out about financial incentives such as rebates or tax credits in my home state?
A: Several resources are available to help you obtain this information. To learn more about financial incentives in your area, please visit the Database of State Incentives for Renewable Energy (DSIRE) and contact your state's energy office. One caveat: Any time you work with a contractor, it is wise to check references.
Other Resources: For additional guidance, contact your U.S. Department of Energy (DOE) regional support office.
To find a solar energy system designer or installer in your area, please visit our solar yellow pages for a list of sources of solar professionals.
To learn more about financing opportunities, please see The Borrower's Guide to Financing Solar Energy Systems: A Federal Overview, September 1999 (PDF 501 KB).
Download Acrobat Reader.
back to top
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