Solar Thermal Economics
The average residential Solar Thermal System designed for domestic hot water will cost about $8,000 to $10,000. Prices will vary for all systems designed. Let’s consider the more expensive system.
- Total Installed Cost: $10,000
- Federal Tax Credit: 30% x $10,000 = $3,333
- State Tax Credit: 15% up to $1,000
- Utility Rebates for Natural gas customers: 15% of project cost up to $1,500
For this example we will not deduct the utility rebate as it may not apply to all clients.
Total installed cost after tax credits: $ 5,777
This system has already paid for itself due to the fact that it increases the value of your home in excess of the actual installed cost. The actual cash value return on investment is dependant upon your existing system and the rate of inflation of energy prices. We will use 10% inflation in this example.
| |
Electric Water Heater |
Natural Gas Water Heater |
Solar Water Heaters |
| Year 10 |
$1,013 |
$584 |
$0 |
Considering that this system will operate at $0 per year for Thirty to Forty years the amount saved compared to a natural gas water heater is almost $30,000! |
