What is the payback time on a solar water heater?
See the COST page. Our customers with Austin Energy typically realize a 4-5 year payback with rebates, other customers in about 6 years. Remember, this varies depending on family size.

Will my solar water heater run out of hot water when there is no sun?
No. The system is designed to store enough hot water during the day to last you through the night until the sun is up again. Remember, even when it’s cloudy, there is often enough solar radiation to power the system(Just like when you go to the beach on a cloudy day and you still get sunburned). There is also a backup heating element that heats the water when there are consecutive days with no sun. See “How solar Works”.

Does my electric water heater really use that much energy? The savings estimates seem high.
An electric water heater has two 4500 Watt elements. When one clicks on to heat water, you're using 4,500 watts of electricity, more than most residential air conditioners, or the equivalent of 90 light bulbs! One hour of heat recovery at 10.5 cents per KwH would cost you nearly 50 cents. You can see how this can quickly add up over the course of a month. In fact, many homes with electric water heaters spend more money heating water than on air conditioning.

Do I get the full 30% tax credit even if I receive a local rebate?
Depending on who you listen to, you will hear both answers. Our opinion after consulting accountants is that you now can take the full tax credit as of 2009. Div. B of Section 1103 of The American Recovery and Reinvestment Act has a clause for "REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY PROPERTY" Source: Senate.Gov

I’m worried that the installation will make my roof leak
Tens of thousands of solar water heaters are installed every year in the U.S., hundreds of thousands are installed worldwide. Incidents of leaking are extremely rare and we follow the manufacturer’s specifications diligently.

Will my system be damaged by hail?
The solar panel cover is made out of tough tempered glass. It will survive much tougher hail storms than your roof can withstand. We recommend adding your system to your homeowners policy just in case.

Why is Austin Energy and the Federal Government paying for so much of the cost?
The short answer is because they work. Solar water heating has the potential to reduce our dependence on oil by millions of barrels per year. Electric companies, like Austin Energy, which use conservation, rather than building expensive new power plants, will save millions of dollars for their customers in the long run.

What if my HOA doesn’t allow solar panels?
Attitudes are changing and many HOAs will work with you to ensure that your project preserves the architecture of your neighborhood. Further, we can normally put the panel on almost any side of your roof and tilt the panel at an angle that gathers the most sun.

What about tankless water heaters?
Tankless heaters are an option for people who cannot install a solar system because their roof does not get enough sun. However, they can cost $2500 to $4500 to install and upgrade your existing gas or electrical connections, thousands more than the total cost of a solar system. And remember, tankless heaters still use gas or electricity. They are only about 20% efficient as opposed to 80% efficiency for solar. Tankless water heaters can take over 20 years to pay for themselves. See this article from Consumer reports. link

What if I’m building or about to move into a new home or refinancing my current house?
In this case, adding a solar hot water system is even more attractive financially. The system would add $15 to $25 per month to your mortgage, and save you up to $80 per month(possibly more). And you would still get cash back from Austin Energy and the Federal government(about $3000 total). Enough to possibly pay your first and second mortgage payments.

How much sun do I need to benefit from a solar water heater?
All you need is a south, east, or west facing roof that receives an average of 3 hours of sunlight per day to maintain heat in your tank for 24 hours. North or east facing roofs can be used in some circumstances by tilting the panel.

I like saving money, but I’m more interested in the environmental benefits. What are they?
As mentioned elsewhere on the site. A conventional water heater uses the equivalent of 11 barrels of oil per year in energy. That adds up to about 10,000 pounds of C02 each and every year. Replacing your conventional system would have the same environmental benefit as selling your car and riding a bike everywhere.  For passionate environmentalists, solar hot water is a case of “having your cake, and eating it too” when you also consider the economics.

I am subject to the alternative minimum tax(AMT). Can I still get the Federal tax credit?
Yes. Federal bill H.R. 1 which covers installations performed January 1, 2009 or after lets you apply the 30% tax credit even if you are subject to the AMT. Meaning you would owe less than the AMT amount.

I have a new water heater, why do I need to get a solar water heater?
If you have a water heater that is less than 5 years old, we can retrofit your existing tank which would save you about $500 on the installation. In many cases this puts your payback time at less than 2 years.

I have a gas water heater. I won't save that much money, why should I do it?
With current natural gas prices, you can expect a solar water heater to pay back in 5-6 years. But remember, gas prices are volatile and are closely tied to the price of petroleum. Everyone knows that gas prices are only going one direction, up. Investing in a solar water heater is a good hedge against future energy price increases. You also have the added benefit of more hot water than you can use, and increased home value.

 

Database of State Incentives for Renewables and Efficiency

 

Austin Energy Solar Rebate website

 

Department of Energy –Energy Efficiency and Renewable Energy

 

Solar Rating And Certification Corporation

 

Energy Star

 

Solar Energy Industries Association

 

Texas Renewable Energy Industries Association

 

National Geographic Green Guide

 

NY Times article on Solar Hot Water