Solar Hot Water Q & A

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1) Is Solar Hot Water a good investment for me ?

The potential savings on water heating bills are affected the most by the type of fuel you are using to heat that water and the number of people in the home. If you are heating hot water for two or more people and you heat water with electricity or with bottled or natural gas, then you owe it to yourself to look at solar water heating, it could be a great investment for you.

2) What is the "payback" on a solar hot water system?

The term "payback" is a misconception that shows a false value towards an income generating device. Electric and gas water heaters do not have a payback! When you purchase a more efficient refrigerator, the decision to buy comes not from how long the savings generated will pay you back for your initial investment, but it comes from getting better service for a lower operating cost with a better rate of return. Solar water heating systems do just that. They provide quality hot water at a lower cost than heating with electricity or LP gas with more equity value in your home.

Solar collectors are typically designed to last as long as your home with little or no maintenance. These systems often give a 14% to 20% per year non-taxable rate of return on your money - even for a two person household. It is important to remember that hot water is a constant daily expense; other large household appliances, like air conditioners and heaters, are seasonal expenses.

Hot water is typically 20% to 30% of the annual utility bill. Hot water for showers, dishwashing, and laundry costs about $110 a year per person (when LP gas costs $1.15/gallon or electricity costs 7 cents/kilowatt hour). When electricity is 10 cents/kWh or LP gas is $1.60 a gallon, it will cost about $646 a year to heat water for a four person household. A properly sized solar water heating system can be expected to save this household $450 to $600. And, ECS has several passive and active solar hot water systems to accommodate households from two to ten people, all of which qualify as a non-taxable investment.

3) What about this investment in a solar hot water system?

It is ironic that you, if you are an individual using LP gas or electricity to heat water, will pay for a solar hot water system over the next 4 to 8 years whether you get one or not!! You can invest today in a solar hot water heating system and have monthly savings and increased equity value in your home, or you can pay the local utility company every month. Your solar system savings will offset your payments, so you will actually own your solar water heating system at the end of five years. Remember that all solar savings are in non-taxable income, so a dollar saved on your water heating expense is equivalent to $1.30 or more of your taxable income.

4) What about adding the Solar Hot Water Heater into the mortgage? 

This is a great time to install a solar hot water system. The monthly savings are far greater than the small increase in mortgage payments. And, the tax savings from the home mortgage or home improvement loan -- typically 25% or more -- count as an itemized deduction on your income tax. Typically, the after-tax rate of return on investment will be over 18% per year, even for two people. You also increase the property value of your home and its visual perception as an energy efficient, environmentally responsible home.

5) What about freezes and cloudy weather? 

Both active and passive solar water heating systems come with a 100% lifetime guarantee against freeze damage. The active and the passive solar water heating systems are both approved by the Florida Solar Energy Center for use in North Florida. Active solar systems have a conventional electric heating element to heat water on the few days that it might be needed. Passive solar systems act as a pre-heater to heat water before it is drawn into the cold inlet of the standard gas or electric water heater. All solar water heating systems deliver both higher temperature water and more water volume than conventional water heaters. Typically 40 to 80 gallons more hot water than conventional water heaters.

6) What about heat recovery units instead of a Solar Hot Water Heater?

Testing by Florida Utility Companies and the State Energy Center reveal that heat recovery only saves about $39 to $69 a year - only 1/10 of the savings of solar energy systems. First, a heat recovery unit does not save any money when you are not heating or cooling. It saves the most money when you are air conditioning, because during this time the heat pump or air conditioner has free heat to expel. However, in the winter when a heat pump must pump heat into the house from the outdoors, there will only be minimal water heating savings. In addition, heat recovery units can have problems with freezing during the winter and scaling on the heat transfer equipment - this reduces the efficiency of the unit. A heat recovery unit also might require a whole house water softener to correct the scaling problem. A water softener isn't needed for a solar system. And, a solar system, unlike heat recovery, can be connected to all household water heaters.

Solar is the best way to qualify an Energy Star Home for a low interest mortgage. 
Note:  Solar energy is exempt from sales tax in the state of Florida.

7)  What about the appearance of a Solar Collector on our roof?

Today solar collectors are typically integrated into the slope of the roof. This method of installation gives the solar collector the appearance of a quality, opaque, glass skylight. In most cases, since the piping is not seen, it actually improves the appearance of the home because it looks like an elegant, expensive skylight. ECS offers a free solar site survey to determine the location of the solar collector, and to verify that you will not have any collector shading problems. You typically need only about 4 hours of direct sun (between 9am to 4pm) per day.

8) What about the environmental benefits of going solar?

Any time you use solar energy to offset the amount of fossil fuels that are burned, you contribute to everyone's health and welfare. Operating one solar water heater instead of an electric water heater saves the equivalent of nine barrels of oil every year and reduces carbon dioxide emissions (a greenhouse gas) by 1600 pounds and sulfur dioxide (contributes to acid rain) emissions by 12 pounds. Multiply those emissions per household by all the homes in your neighborhood, town, county, or state, and the benefits -- and the air and water -- become even more clear. Environmental Consciousness is a state that induces action through your belief in leaving a better world for yourself and future generations. We are all free to believe what we choose and what we each do, attests to what we believe.

9.)  Let the Sun make your monthly payments!!

All banks and lending institutions will loan you money to put in a solar system. The good news is that even for two people the equity value and savings will result in a net positive income for the length of the loan and that equity value has been proven to last over 30 to 40 years. Then the system will generate $300-$600 in non-taxable income each year. Solar hot water systems usually cost $2,400 to $3,600 depending on the size and type of system you install. ECS has a payment plan called "Let the sun make the payments," where we finance 1/2 the total cost of the system over 3 to 5 years at 6% interest. The money you save on your monthly utilities is actually being used to purchase your own water heating system.

Solar Energy...the Choice is Yours!

The only choice is what you are going to be getting for your money - you will be incurring a monthly debt with no equity and higher payments with no savings or return, if you do not go solar.

The choice is not about spending money. The choice is only about what you actually "get" in return for a continuing monthly debt. You are spending money anyway - either you invest it for more home equity and savings, or you give it away for a service provided by your local utility.

For example, if you could either lease or buy a car, making equal payments for five years, which would you do? Pay to lease or pay to own!? Then you can start keeping utility profits for your own nest egg.

EVERY DAY THE SUN RISES. . . and every day you could be saving money and enjoying the revitalizing power of sun heated water...

 
BOTTOM LINE!

 USE CLEAN, RENEWABLE ENERGY, RIGHT FROM THE SUN,
FOR A BRIGHT TOMORROW FOR OUR CHILDREN

Give Your SUN a Job. . .   Call ECS at 352- 377-8866

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