Solar Water Heaters

Perhaps you’re not ready for a full solar panels installation, but would you consider a Solar Water Heater on your roof? You keep your regular water heater, which provides back-up.  The new system should be relatively close to your old water heater and you can use gravity for what’s called a “passive” system (no pump). It’s long-lasting and requires almost no maintenance but you can't have trees blocking the sun.

Solar water heaters cost anywhere from $6000 to $8000 depending on access to plumbing and the size and quality of the panels, and you are eligible for a 30% one-time federal tax credit (good through 2016). This credit does not apply to swimming pools or hot tubs or to apartment buildings.

Then there’s a state rebate for up to about $1800 from California Solar Initiative “Thermal Program” that began May 1, 2010 (with electricity-using water heaters the rebate is up to $1250). If you have high gas/electricity bills, this can make a difference because your rebate is determined by how much you displace – for gas, start at The Gas Co.'s website here (for electricity, well, LADWP doesn't seem to be up to speed yet).  For gas, it's initially $12.82 per therm displaced; for electricity it's 0.34 per KW hour. You really need to talk to a vendor or go to a workshop to figure all this out.  The rebates will be subject to stepdowns, meaning the rebates steadily reduce in size as the money is used up.

My total estimate came down to under $4000 but our gas bills are modest and we wouldn't be displacing many therms. It would be 10-15 years before we broke even, but that seems reasonable.

If you want to follow up with the nearest local company, I recommend ADR Solar in Woodland Hills and you can reach them through their website: here.