Residential Thermal Saving You Money

In some regions, such as San Diego, CA, a local rebate is being
offered for solar water heating in addition to the tax credit.
The rebate program launches on May 1, 2010, and the program
will begin receiving applications then. However, the rebate is
retroactive to July 15, 2009, and all installations that meet all
of the rebate program criteria and that obtained final signed
off building permit after July 15, 2009 will be eligible to apply
for the incentive.

Details of the Rebate:

-Rebate incentive level starts at $12.82/Therm, max of $1,875 per system (for gas water heater displacement); max of $1263 (for electric water heater displacement)

-Customer applying for the rebate must be a gas or electric customer of one of the following utility companies: PG&E, SDG&E, SoCal Edison, or SoCal Gas

-Rebate granted to solar water heating systems installed to displace existing gas or electric water heaters

Federal Tax Credit

In addition to any state rebate being offered, a 30% Federal Tax Credit is granted to any homeowner who installs a solar water heating system. This tax credit applies to your tax liability— not merely a tax deduction—for the year the system was installed.

The California Energy Commission estimates that the average household spends up to 30% or more of its energy bill for hot water heating, and it accounts for more than one-quarter of the total energy used in a typical single-family home. An electric water heater is the single largest user of electricity of all household appliances.

Whether you have an electric or gas water heater, the operating cost will continue to rise over time. According to the California Public Utilities Commission, electricity rates have been increasing an average of 6% per year, over the past 35 years, and the wholesale price for natural gas has more than tripled in the past eight years. Natural gas shortages are likely to push rates even higher in the near future. With solar you will no longer have to be at the mercy of the utilities and their ever-rising rates.

The California Public Utilities Commission estimates that a typical homeowner can save 60-70% on the cost of water heating by installing a solar water heating system.

An Investment That Pays For Itself
A properly designed and installed solar water heating system will perform well for 20-40 years. Over the life of the solar system you will realize an average annual 15% return on investment. A typical residential solar hot water system in California has an 8-10 year payback, and will generate $15,000 to $20,000 positive cash flow over the system’s 30-year life.
A solar pool heating system has a typical payback period of 2-4 years. There are several factors that affect the savings realized with a solar pool heating system, including, your climate, the size of the pool, your cost for natural gas, the pool temperature you wish to maintain, whether you use a pool cover, the length of your swimming season, your climate zone, etc.

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