Solar Water Heater: Initial Cost vs Savings Solar Water Heater: Initial Cost vs Savings
A Solar water heater can cost more initially than conventional water heaters, but you will likely save more money in the long-run. They utilize solar energy from the sun to heat up the water used throughout the home, versus electricity. Solar water heaters are also better for the environment.
The initial cost of a solar water heater is much higher than a conventional water heater, ranging from $1,000 to $4,000. A conventional heater ranges from $200 to $2,000 on average.
Impacts and Effects
Solar water heaters may not work as effectively in cold, more overcast climates. This is due to the fact that sunlight is not as prevalent in these regions. Therefore, you may end up requiring a backup conventional water heater, which adds to the overall costs. The most cost-friendly climates for solar water heaters are warmer climates with lots of sunshine.
The Bottom Line
Solar water heaters pay for themselves in just a few years. Consider the costs of electricity or gas associated with a conventional water heater versus what you would pay for a solar-powered version to see the difference. Also keep in mind that the purchase of a solar water heater counts as a tax deduction.