| Costs |
Rather than spreading energy payments
over a long period of time, as with natural gas or
electricity, a solar system places all the costs
up front. From there, the sun doesn’t charge
for its energy.
The up front costs will depend on which type of
system one wants. A black bucket that leads into
a washing basin will be very cheap, whereas a multi-panel
closed-loop system could be quite expensive.
The first consideration
is size. A family of four uses about 80
gallons of hot water per day. One gallon of hot
water requires one square foot of collector area.
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So, a family of four will probably
require two 4-foot by 10-foot solar collectors and
a tank with 70- to 140- gallon capacity. Families with
low hot water use could manage with one collector,
and households using a large amount of hot water might
need three. |
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The second consideration
is climate. Residents in Georgia (north
of Atlanta), South Carolina, North Carolina, Tennessee,
Alabama and all points north will probably want
to go with either an indirect freeze protection
system or a drainback system. These freeze-safe
systems are more expensive than the simpler systems.
A local installer will be able to determine what
types of systems are best for your climate.
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Fully installed, a two-panel, indirect
system will probably cost from $3000 to $4500. The
system itself will likely cost between $2000 and $3000,
while labor will add another $1000 to $2000. A simpler,
non-freeze protected system could easily be $1000 less
expensive overall. Only a local retailer and installer
can provide a hard price quote. |
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| Payback |
Payback is dependent upon the local
cost of gas or electricity and how much of the total
hot water bill is offset.
Assume your hot water costs are $400 per year
using a conventional gas or electric tank heater.
If your $3000 solar thermal system cuts these bills
by 75 percent, then you will see a payback in 10
years.
A good rule is that larger systems used
efficiently have shorter paybacks, and typical
residential payback time is between 7 to 10 years.
Your payback time will be shorter if you shower,
wash dishes and wash clothes in the afternoon and
early evening, when the conventional heater is
barely needed.
Remember, everyone has different heating costs
and some systems are cheaper than others. Payback
times will vary greatly.
Those with an eye on the global environment as
well as the home energy bill can be assured that
a solar thermal system is an effective way to cut
their home’s greenhouse gas emissions by
one to two tons per year.
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| Incentives |
As part of the Energy Policy Act of 2005, the U.S. government offers a 30% tax credit for qualified solar hot water system expenditures. The maximum tax credit is $2,000 for residential systems. Equipment must be placed into service between January 1, 2006 and December 31, 2007.
To learn more, read Tax Incentive Opportunities for Solar and Energy Efficiency on the Southface factsheet page.
The South Carolina State Energy Office will offer
a $1,000 rebate on solar thermal systems installed
on homes built under environmentally responsible
EarthCraft House™ standards. The EarthCraft
House program was developed through a partnership
between homebuilders, the Greater Atlanta Homebuilders
Association and Southface Energy Institute.
Florida charges no sales tax on solar systems.
North Carolina and Virginia exempt the additional
value of solar systems from property tax. Fannie
Mae and the U.S. Department of Energy have special
finance programs for some renewable energy systems.
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| DSIRE Database |
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The North Carolina Solar Center has put together
a website called DSIRE, or Database for State Incentives
for Renewable Energy. Refer to this website for a
comprehensive list of incentives in your state, and
check with your utility provider for additional incentives.
www.dsireusa.org
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Remember:
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renewable energy and energy efficiency legislation
can be retroactive, meaning you could receive a credit
for your solar system years after you’ve paid
it off |
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future unpredictability in energy markets could
mean your solar system will be a valuable asset when
you resell your home |
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Maintenance
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Maintenance for these solar thermal
systems is typically very low. Officially, indirect
freeze protection systems need to have the heat-transfer
fluid changed about every five years, but some users
claim to have no problem with even older fluid.
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Solar thermal manufacturers |
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Solar thermal installers |
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