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Solar Hot Water Costs
What is the payback time on a solar water heater?
We get this question a lot. Much depends on your house and how difficult the installation will be. There are different sizes of tanks depending on your demand, the number of collectors needed can vary as well. There are also different types of rebates depending on what utility you have in central Texas. Everyone is eligible for the 30% tax credit however, providing you pay taxes. With all these factors in mind a typical system can cost between $2,000 to $4,000 after rebates depending on your situation
Rebate Summary: $2000 AE + 30% of cost Federal tax credit
How Much can I save?
Federal government tests on electric water heaters show a typical energy usage of around 5000 Kw/H annually. This equates to between $525 and $650 per year depending on your electric rate. Assuming your solar system operates at 85% efficiency, you can save up to $7,200 over 10 years(electric) or $2,500(gas). assuming energy costs rise at 5.9%.
Another way to think about this is the marginal cost of upgrading to solar: If it's time to replace your old water heater anyway, then you're looking at $700-$1200 to replace with a standard water heater. If you qualify for rebates the additional cost of going solar can be as little as $800-$1500 more than you would have had to spend on a regular tank.
Solar water heating as an investment: Your total investment after incentives could be around $2100. Depending on usage habits, many can save at $350 to $500 per year. That's an annual 25% return on investment, tax free, no capital gains tax. To beat that in the stock market you'd have to receive at least a 40% return annually, before taxes.
If you bought Google stock the day it was first offered in 2004 you would have seen a tremendous return of 39% annually. But if you sold the stock you'd be taxed possibly 25% in capital gains. Using this comparison, a solar water heater is mathematically a stronger investment than Google stock! a62 dialog flex
Energy Use in a Typical Home
Most people don’t think about how much they spend simply to heat their water.
Many homes use more energy to heat water annually than to run their air conditioners
What does this mean to me?
| if you already have an electric water heater: | |
| $6000 (savings over 10 years) | |
| -$1920 (total cost) | |
| $3080 (total savings) | |
| If you already have a gas water heater: | |
| $3600 (savings over 10 years) | |
| -$1920 (total cost) | |
| $1680 (total savings) | |
Financing Options
Velocity Credit Union/Austin Energy Financing: Austin Energy offers an interest free loan up to 10 year terms for installation of a solar water heater. The maximum loan amount is $5000, which means monthly payments of $41.67. If you choose this option, then you cannot take the $2000 rebate that they offer.
Sunbelt Solar has payment options that work for all qualified buyers, Austin energy customer or not.
Regular Financing: 0 Down. Payments as low as $76/month with Austin Energy rebate. $118/month for regular price systems without the rebate. With this option, you start saving right away and virtually never come out of pocket because your monthly savings will offset your payments on the system.
We also accept most major credit cards.
Rebate Form Links. We fill the non IRS forms out for you.
Austin Energy $2000 rebate form (We'll fill it out for you)
Sunset Valley rebate form Sunset Valley residents: over 90% of your system is paid for by the combination of incentives.
Texas Gas Service Solar rebate $750 rebate from Texas Gas Service.
