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One of the most exciting financial aspects of installing a Solar Hot Water System is that it can make a great deal of economic sense. A well designed, properly installed system can pay for itself in just a few years. Over the course of a few years your system can become virtually cost free.  State and federal tax and energy incentives as well as rebate programs make solar hot water more attractive than ever.

People often ask “What is the pay back?” for solar thermal systems. Compare it to traditional heating methods. If you buy oil, gas or electricity the supplier will not offer a pay back opportunity. With traditional methods no matter how much you buy, no matter how long you buy it for, you’ll never get your money back. You just spend it. Add in the expense to continually service, maintain and renew your fuel burning equipment and it adds up to a major cost. There is a better way.

To understand payback you have to factor in future energy increases, account for inflation, and take into account the ability to make a boiler last longer with less maintenance. Most thermal systems will offer a pay back of between 6 and 15 years.

Another way of looking at payback is the return on your investment that solar thermal offers. Typically the financial savings of an efficient solar thermal system will be equivalent to a tax free return on investment of between 8% and 12%.

The initial investment in a solar hot water system will be more than a conventional water heating system. The overall cost is determined by its size and complexity. Tax incentives and rebates are generally available. Check with your local government and utility company to determine what incentives or rebates they may offer. Long term cash flow analysis should be considered to make a proper decision.

An efficient system will cost several thousands of dollars per collector to install. It is very important to have your system properly designed, installed and maintained to optimize its performance and to avoid maintenance problems.

Payback With conventional methods you’re
simply burning your money

The implementation of a solar thermal system is a major financial investment. We’ll show you the payback and how the system can actually save significant dollars in the long run. It’s an investment that will pay for itself.

Fundamental considerations