There are many reasons to go solar. For many, by far the largest is the savings, especially in these tough economic times.

The California Energy Commission estimates that the average household spends up to 30% or more of its energy bill for hot water heating, and it accounts for more than one-quarter of the total energy used in a typical single-family home. An electric water heater is the single largest user of electricity of all household appliances.

Whether you have an electric or gas water heater, the operating cost will continue to rise over time. According to the California Public Utilities Commission, electricity rates have been increasing an average of 6% per year, over the past 35 years, and the wholesale price for natural gas has more than tripled in the past eight years. Natural gas shortages are likely to push rates even higher in the near future. With solar you will no longer have to be at the mercy of the utilities and their ever-rising rates. The Commission also estimates that a typical homeowner can save 60-70% on the cost of water heating by installing a solar water heating system.

An Investment That Pays For Itself

A properly designed and installed solar water heating system will perform well for 20-40 years. Over the life of the solar system you will realize an average annual 15% return on investment. A typical residential solar hot water system in California has an 8-10 year payback, and will generate $15,000 to $20,000 positive cash flow over the system’s 30-year life.

A solar pool heating system has a typical payback period of 2-4 years. There are several factors that affect the savings realized with a solar pool heating system, including, your climate, the size of the pool, your cost for natural gas, the pool temperature you wish to maintain, whether you use a pool cover, the length of your swimming season, your climate zone, etc.