Solar heat installations do the same job as an electric or gas water heater, so you won’t be sacrificing any comforts. They can heat the same amount of water as a traditional water heater, and uses much less energy to do so. When faced with the choice to install an electric or gas water heater or a solar heat system, upfront costs are different. Typically, a solar heat installation can cost around $4,000.00 more than installing a standard water heater.
You need to consider the cost to heat water over the lifetime of the equipment in addition to the upfront cost. Research shows that solar heat installations use much less energy than an electric or gas water heater, which can account for up to 25 percent of a home’s energy use! A solar heat installation saves homeowners 50 to 85 percent on the cost of energy used for water heating each year. Plus, you’ll be spared added expenses when energy prices fluctuate.
The payback period of a solar heat installation is typically 4 to 8 years. After that, you’ll begin to accrue savings as long as the system lasts, which can be anywhere from 15 to 40 years! To determine a simple payback period, find the net cost of installation (the price you paid minus any tax credits or incentives) and the annual fuel savings. Divide the net cost of installation by the annual fuel savings to see your payback period.
Getting an estimate for a new solar heat installation is a solid way to begin determining what your exact economic benefits will be. Call Smith Sustainable Design today for quality solar heat installation.