Subscribe to Free Hot Water Solar Blog
Receive the FHW Monthly Newsletter
|
Free Hot Water Blog
Posts Tagged ‘solar hot water for homes’
North Carolina Utility Study: Solar Hot Water Saves 63% of Water Heating Bill
Friday, March 30th, 2012 by Solar Fred
Progress Energy, a Raleigh, NC-based utility, has completed a previously announced study showing that its residential customers could save $235 a year, or 63% of the water heating portion of their electric bill. The utility also offers commercial solar thermal incentives, as well.
Few people beyond solar thermal advocates realize that heating water with an electric hot water tank is tremendously inefficient, wasting both energy and money. So, it’s great to see a utility (in cooperation with the North Carolina Utility Commission) conduct a study on solar water heating savings.
The pilot program and study gave 150 Progress Energy customers a $1000 rebate toward the cost of buying a solar hot water heater. (Other North Carolina utilities currently offer cash rebates between $400 and $850 for residential solar thermal systems.) Progress estimated that over 15% of a typical home’s electric bill is used for heating water.
The costs of installing the solar thermal systems averaged $7,271 per household, ranging from $4,000 to $12,375 per home. However, that was before rebates and other incentives.
In addition to the $1000 rebate from Progress, homeowners also qualified for the 30% federal investment tax credit (ITC) and an additional 35% state tax credit of up to $1,400, which reduced the overall solar installation cost by about half.
While the Progress Energy’s residential pilot program has currently expired, Progress is still offering commercial solar water heating cash incentives. The utility will pay $20 for each renewable energy credit (REC) generated by the solar water heating system for a period of 10 years.
One REC represents one megawatt-hour (MWh) of avoided solar electric costs. To be eligible for the incentive, rooftop-mounted solar water heating systems must be installed in North Carolina (or South Carolina) on commercial property owned by a non-residential customer of PEC, and must have between 1,200 and 4,000 square feet of collector area (roughly 30 to 100 solar thermal panels). Solar thermal power purchase agreement (PPA) providers are also eligible.( North Carolina’s Duke Energy utility has a similar solar thermal program.)
Those generous incentive means that North Carolina apartment buildings, hospitals, hotels, and nursing homes are ripe for solar hot water installations.
To recap, a North Carolina utility study shows that North Carolina residential solar hot water heaters are cost effective, especially for solar electric customers. In addition, commercial customers can still benefit from cash incentives provided by Progress Energy.
If you have any questions about these programs, please contact us at Free Hot Water, and we’ll be happy to help.
Tags: residential solar hot water, solar hot water, solar hot water for apartments, solar hot water for homes, solar hot water resources, solar policies, Solar Rebates, Solar Thermal Economics, solar water heating for apartment buildings Posted in 30% Investment Tax Credit, Hotel Solar Hot Water, North Carolina Solar Hot Water, pre-engineered solar thermal systems, Residential Solar Hot Water, Solar Business Resources, Solar Hot Water, Solar Hot Water for Apartment Buildings, solar hot water for hospitals, Solar Hot Water Value, Solar Rebates, Solar Tax Incentives, Solar Thermal & Solar Hot Water News, Solar Thermal Economics, SRCC OG-300 solar systems | 1 Comment »
Top 5 Payback States for Home Solar Hot Water Systems
Tuesday, September 6th, 2011 by Solar Fred

In celebration of our 12 new SCRCC-approved OG-300 solar water heating systems, we decided to use Free Hot Water’s handy-dandy solar hot water cost calculator and find out which states provided the fastest payback time for residential solar water heating.
We used the calculator and went through every state. For each state, we assumed the same type of roof installation and a closed loop OG-300 retail price for a family of four with a gas heat backup.
Before you glance down at the list, some caveats:
- I have to say that I was surprised that Hawaii was not at the top of the list. Hawaii had a 14 year ROI, which is surprising, since Hawaii imports virtually ever drop of oil, coal, gas, and propane. As a result, fossil fuel energy prices are extremely high there and so are utility rates. My guess is that our engineers have input a national price for gas, which is relatively low. So, it appears we need update the calculator’s rates for Hawaii’s typically high gas prices.
- Second, though not listed below, South Dakota came in at number 1 with an ROI of just 1.3 years! I found this extremely surprising. Searching the DSIRE database, I couldn’t find the South Dakota inventive program that corresponds to the generous rebate indicated in our calculator. So, I’m guessing this is a glitch and we have to update our database.
- The map above reflects the insolation potential (amount of yearly sunlight) for each state, but does not reflect payback, which incorporates many factors beyond hours in the day.
Other things to keep in mind:
- Remember that all homes qualify for the 30% Federal Investment Tax Credit. More on how that’s calculated here. However, except in the U.S. territory of Puerto Rico, pool solar water heating systems do not qualify for the 30% tax credit.
- Also remember that our calculator automatically inputs retail prices, so if you’re a Free Hot Water certified installer reading this, expect that our calculator’s price will be discounted for you.
- Finally, state and utility rebates come and go very quickly. We’ve noted that for Connecticut’s rebate, which is technically still in effect, but is now awaiting refunding for the state or the Feds.
- This list doesn’t take into account the brand new SREC program for Maryland, which may actually push it into this contender list.
With all of the above in mind, we give you our top 5 states (or territories) for the fastest ROI for residential solar water heating,
Residential Solar Hot Water ROI Payback in Years
State                         ROI (years)   Notes
1. Connecticut           7.96              Program awaiting new funding
2. Massachusetts      8.77
3. Puerto Rico           10.42
4. Louisiana             10.72
5. Arizona                 10.85
Typically, residential systems last for 20 to 25 years. The majority of states in our calculator’s estimates came in at around 13 to 15 years, so no matter how you slice it, residents will still recoup their investment. If gas prices rise more sharply in the next few years, then the years to payback will be even shorter for all states. Naturally, new or expiring incentives will also affect rankings. In short, this is only a snapshot for residential ROI. In the future, we’ll try to keep you updated about any new incentives that come along. Thanks for reading.
Tags: home solar water heating, residential solar hot water, solar hot water for homes, solar hot water incentives, SRCC OG-300 Posted in Solar Hot Water Value, Solar Rebates, Solar Tax Incentives, Solar Thermal & Solar Hot Water News, Solar Thermal Economics, SRCC OG-300 solar systems | No Comments »
What’s Keeping Solar Hot Water From Going Main Stream? Some Thoughts and Solutions
Tuesday, April 26th, 2011 by Solar Fred

I wish I had the exact answer to that question. All of the research regarding consumer attitudes toward solar is generally PV related, rather than solar hot water related. At the same time, solar hot water has some obvious challenges, especially in the residential space.
1) Solar hot water competes with dirty (and cheap) natural gas. With the exception of Hawaii, natural gas is currently fairly inexpensive right now. The amount of hot water that an average residential customer uses typically makes for a slower return on investment. Check out our solar hot water calculator, plug in the numbers for any state for residential, and you see for yourself.
Some solutions: Either home solar water heating systems have to become less expensive or natural gas prices have to rise. While the latter solution may appear to be a long shot, recent news about the environmental cost and abuse of hydraulic fracturing (fracking) may add more cost pressures on natural gas when stricter Federal regulations are enforced, but that remains to be seen.
2) There are fewer local and federal incentives for solar hot water. While California has just passed some generous rebates that make solar thermal very attractive for commercial customers, the incentives don’t apply to pool heating and take up perhaps 25% of the cost of residential systems. The 30% Federal investment tax credit can also help reduce up front costs, but only to non-pool heating applications. While that extra 30% is great, it generally benefits those who often owe taxes at the end of the year.
Some solutions: One solution would be to make the 30% tax credit refundable, so that you could get money back from the IRS if you were due a refund. As it stands now, the credit can be carried over for 5 years, but that’s a difficult sales case to make. In addition, governments could increase the rebate amounts for solar water heating systems, making a faster ROI. Finally, local and federal governments could allow the 30% Federal ITC to apply to pool heating, opening a huge opportunity for Western and Southern states, where pools are largely not being used due to cold weather and the high cost of heating them during the non-summer months.
3) Solar hot water has fewer marketing resources. While I genuinely appreciate the money and time that SEIA put into its solar generations videos and PSAs, solar water heating was barely mentioned throughout the series. Most of the images and statements were all PV related.
Some solutions: It would be great if SEIA and other solar organizations would dedicate a campaign or three or four to solar water heating for homes and businesses. In addition, it would be great if solar water heating manufacturers could increase their marketing budgets. Given the lukewarm demand in the residential sector, it’s understandable why manufacturers are tightly holding the purse strings for now.
4) More financing options for solar hot water. It’s wonderful how there are so many solar leasing and PPA (a.k.a. home solar agreement) options for solar PV today. The same cannot be said for solar thermal. These arrangements take the sting out of the upfront cost of solar PV and would do the same for solar hot water consumers.
Some solutions: Obviously, solar PPA companies and venture capitalists could design more programs for solar thermal, but banks and venture capitalists have to find the right financial formula. Reviving PACE programs could help, as well, but that appears to still be in recovery mode. Additionally, solar PV companies that currently only offer solar leases and solar PPA’s of PV could expand into solar water heating.
The good news is that even without high subsidies, solar water heating does make financial sense for large commercial applications, such as apartment buildings, hotels, hospitals, etc. The disconcerting news is that these venues are still largely unaware of solar hot water and solar thermal financial benefits. Even when they are aware of the cost savings, they must find the courage and the financing to move forward.
Those are my general observations. Admittedly, they’re not based on hardcore market research data, but just my experience hear at Free Hot Water, and talking with other solar thermal installers.
Got more challenges or solutions? By all means, please add to them here in the comments section below.
Tags: solar hot water, solar hot water for homes, solar hot water incentives, solar hot water innovation, solar pool heating, solar water heating Posted in Residential Solar Hot Water, Solar Business Resources, Solar Hot Water for Apartment Buildings, Solar Tax Incentives | 13 Comments »
7 Tips on Generating Residential Solar Hot Water Leads
Monday, February 21st, 2011 by Solar Fred
 Photo:Flickr/loop_oh
Despite solar water heating being a 100 year, plus, solar technology, it still plays second fiddle to PV, which is more expensive and less efficient on a per watt basis.
Better, more aggressive marketing, of course, is the solution to getting more attention for residential solar hot water. As a distributor, your success is our success, so Free Hot Water would like to offer a few tips to generate more residential solar hot water leads.
1. Have a great looking web site. A good web designer costs money, and yet, the investment is worth it. You can only make one first impression, and if your website looks rinky-dink and home made, then that makes you and your service look rinky-dink and home made. So, spend the money for a professional web designer. Make sure there are attractive photos of your installs, brief descriptions of how solar water heating works, FAQs, a blog (see below), and an “about us” page with the smiling faces of your team. Residential customers want to trust and connect with people more than a brand, so highlight who you are and why you care about solar hot water.
2. Start a blog. The internet is America’s default source for solar hot water information. The yellow pages are essentially kaput. Whether you’re marketing solar hot water for pools or homes, become an authority by writing an informative blog post at least once a week. Sprinkle in “solar hot water” and other key words, like your city and state, and Google and other search engines will reward your website with more web traffic. Keep in mind that when people search for those key words, they’re researching solar hot water for their home. Become your town’s local authority through a well-written and informative blog.
3. Use Google Adwords and/or banner ads. Google Adwords is paid, targeted advertising. Once again, when people click on those little ads next to their web searches, Google (and you) know there’s a great chance they’re looking for “solar hot water” or whatever search term you’ve purchased.  Hopefully, you have an informative and attractive website that captures those Google visitors and encourages them to contact you for more information. Here’s the link to Google Adwords. Google has great people who will guide you through all the steps and costs.
4. Run a local solar hot water give-away contest. Sometimes, you have to yell “Free!” to get people’s attention. I recommend a Utility Independence Day contest for July 4th. Put this announcement on your home page with a link to a form. Have people fill out that form with contact info, and follow up with a phone call to verify the information and start a conversation about if solar hot water is right for this customer and the benefits. On July 4th week, do the drawing and give away that system, as promised. Make sure you tell the local press about it. In fact, in June, a month before the contest ends, tell the local press the contest is almost over. Include the potential savings over 20 years and emphasize the utility independence. There will of course be a cost, but all advertising costs something, and this is an interactive way to educate the public and generate leads. If you want to be cheap about it, don’t include the installation, but I don’t recommend this.
5. Contribute articles to local newspapers and web sites. More than the green benefits and technology, residents want to know first, “How much?” Don’t hide it. Write a case study article based on a recent client and be honest about the costs. If you have a local rebate program, explain that program, as well as the Federal 30% tax credit for homes (not pools.) People want to do the right thing by going solar, but they want to be assured about its costs. As a professional, you can be an honest guide and show them solar’s long-term financial benefits, as well as the costs. If no one publishes your article, you can always use the material for your blog or as a White Paper.
6. Co-Market with local businesses. Roofers, hardware stores, pool designers, architects, general contractors, plumbers, electricians, landscape architects, HVAC. All of these businesses are related to solar hot water. Call them up, cater a lunch or coffee and donuts with the owner and sales staff. Give them a solar hot water demonstration and explain the financial benefits. In addition, be sure to ask them for a presentation so that you can be a referral source for them, as well. Exchange brochures, pamphlets, and where appropriate, co-advertise on the radio or in magazines and home shows. Of course, you can offer a referral fee, as well. Don’t be shy. If you believe in your services and product, these relationships will see that and you both will prosper.
7. Reach out and delight to your existing customers. I can’t tell you how powerful referrals are from your existing, happy customers. If you can connect with these people and leave them completely satisfied, they can almost eliminate advertising all together. They will tell their friends about you, brag about you, and brag about their free solar hot water. Of course, first you have impress and delight these people with your craftsmanship and customer service. Do something unexpectedly wonderful for every customer. Treat them to a selection of teas or gourmet coffee for them to enjoy their new sun powered hot water. Or make a donation on their behalf to the environmental cause of their choice. Be creative. Assuming you’ve won them over, ask them if they’d like some brochures for them to give to friends. Even more powerful, ask them to “like” your Facebook page and recommend that page to their friends. (Then provide great, useful solar tips/info on the page for them.) Of course, you can also offer them some kind of referral fee for any closed sale. The point here, however, is for them to want to refer you for free, to be your solar hot water evangelist, telling the world about you. If you’ve executed this tip correctly, I sincerely believe you won’t ever lack for leads, and your residential solar hot water business will grow.
Hope that helped. Now, go sell some solar.
Tags: solar hot water for homes, solar water heating for homes Posted in Residential Solar Hot Water, Solar Hot Water, solar hot water resources | 2 Comments »
|