Costs and Benefits of a Solar Thermal System
Solar Thermal has been one of the most simplest forms of renewable energy since the 70′s. Traditionally known for Domestic Hot Water, solar thermal has evolved to improved Domestic Hot Water and Space Heating, thanks to innovative design and product technology.
To fully understand these cost benefits, we must understand the basic forms of system types below:
Solar Domestic Hot Water
|Solar hot water systems are most commonly used to heat water for basic household needs such as laundry, bathing, washing dishes and cooking. These systems are commonly referred to as “domestic hot water systems”.|
|Domestic hot water systems typically use solar energy to pre-heat the water that is incoming to a conventionally fueled heating tank. The warmer the water from the solar heater, the less conventional fuel will be needed to provide the household’s hot water needs. During the summer months in New York, a properly sized solar hot water system will provide almost 100% of a household’s needs. In the winter, or during extended cloudy periods, the amount of hot water provided by the sun may be 30% or less. IGS’s solar hot water professionals tend to install systems that meet between 60% and 70% of the annual load.|
One of the frequently asked questions that we get is, How Much Does Solar Heating Cost?
How much money you save depends on the following:
- The amount of hot water you use
- Your system’s performance
- Your geographic location and solar resource
- Available financing and incentives
- The cost of conventional fuels (natural gas, oil, and electricity)
- The cost of the fuel you use for your backup water heating system, if you have one.
On average, if you install a solar water heater, your water heating bills should drop 60%–70%. Also, because the sun is free, you’re protected from future fuel shortages and price hikes.
|Electric/Gas Water Heating||vs.||Solar Hot Water Heating|
|1. Pay 100% of your water heating bill.||1. Eliminate 80-95% of your water heating bill.|
|2. Constantly rising utility bills.||2. Constantly increasing savings in non-taxable income.|
|3. No equity or increased value in your home.||3. Your home equity value increases because of your investment.|
|4. Monthly payments for hot water with no return on your investment||4. Income generator produces a monthly positive cash flow.|
|5. Creates air pollution and puts heavy toxic metals into our air and water.||5. Uses non-polluting free solar energy.|
|6. Money spent – monthly payments lost to utility energy providers.||6. Money earned – with built-up equity in your home and a non-taxable rate of return on your solar system of 15% to 20% per year.|
To make finding an affordable solar heating system as easy, quick and painless as possible, our team of solar professionals will work directly with you to design a system that meets your needs, desires and budget, as well as determine what incentives, rebates and outside funding sources are available to help offset your initial investment.