Is a Solar Water Heating System Cost-Effective?
Solar water heating systems usually cost more than installing a traditional water heating system. Nevertheless, solar water heating systems can prove cost-effective in the long run. However, how much you will save on solar water heaters depends on various parameters which include:
- The usage requirement
- Performance of the solar water heating system
- The geographic location and sun exposure
- Installation cost in the area
- Financial aid if available any
Solar water heaters, on average, can help save as much as 50-80% on utility bills. As the system relies on natural resources i.e., the sun, you are free from the future fuel hikes. In short, any hike in the price of utility will not discourage the use of the system as it is powered by the natural source i.e., sunlight.
New buildings can further benefit as the cost of its installation on a 30-year mortgage is quite a cheap amount per month. Moreover, the federal income tax for interest deduction contributable to the solar system further reduces the price by about a few dollars more per month. In short, installing a solar water heater system, you can save on utility at a reasonable cost.
Calculating the annual operating cost before purchasing the system is also vital. For this, you will need to know – the solar energy factor of the system or SEF and the auxiliary tank fuel type i.e., gas or solar, and the cost of the local utility. Also, know the unit cost of fuel by the British thermal unit (Btu) and use the following formula:
365 × 41,045 ÷ SEF × Fuel Cost = estimated annual cost of operation
Using the above formula, you can determine whether it is wise enough to invest in a solar water heater or not. Opting for energy-efficient and environment-friendly appliances is the best thing you can to save on electricity and money.
It’s understandable that some people are thinking twice about getting solar for their home because of the costs of installation. However, there’s plenty of financing options. You can also learn more about affordable solar panel installation here.