How much money can be saved with Solar Water Heater for a family of four?
With the escalating prices of electricity, many households are looking for ways to save money in the long run. One of the easiest ways to do so is by using solar water heaters to heat water instead of gas or electricity. And while some may assume this will be too expensive, the truth is that they can easily pay off the investment within several years and make plenty of extra savings beyond that time frame as well. Here’s how much money your family can save with solar water heaters.
Saving money on a Solar water Heater is contingent on the following
If you install a solar water heater on your roof for the purpose of heating water, you will be reducing your energy bill. The expected savings will depend on how much hot water you use in your household and what kind of hot water system you currently have.
A family of 4 persons needs a medium (80-gallon) storage tank to meet their hot water needs. The following factors will affect how much money you can save:
- The size of your storage tank (80 gallons or larger saves more money than 40 gallons or smaller)
- Your daily hot water needs/how many showers do you take per day?
- Cost of conventional fuels in your State (gas, and electricity)
- Financial Incentives & Tax credits
- Your system’s efficiency rating (the higher, the better)
- The type of solar water heater you choose (flat plate or evacuated tube)
- The geographic location of your home (solar radiation and temperature)
A larger solar water heater leads to More Savings
Bigger solar water heaters are more cost-effective than smaller models. If you want to save as much money as possible, look for a large solar water heater. It will pay off a handsome return over time. Energy Star qualified units are good to start with. They’re guaranteed to be more efficient than conventional models and they’re backed by government incentives and rebates. A 50%–80% saving on your energy bill is not uncommon when switching from gas or electric water heating to solar for a family of 4 persons.
A quick overview of yearly Savings
Saving money is essential in order to live comfortably today and in retirement. While there are many different strategies how to save money, one of them is by using solar energy.
In the US, an 80-gallon solar water heater (4 people household) can cost up to $4000 and provides a ten-year return on investment including installation and upkeep. If you have good sunshine in your area, then a solar water heater will be a very wise decision.
Cost Calculation for Solar water heater in Hawaii:
The initial cost of an 80 GL solar water heater (SRCC certified) is around $4000 and after applying Hawaii’s Energy Instant Rebate of $750, the total amount comes to be $3,250. Now we apply a 26% Federal Tax Credit ($845) and a State Tax Credit of 35% ($1137), so the final investment comes to be $1268. For 10 years, per year cost will be $126.
Cost calculation for Electric Water Heater:
You can get an estimate of how much your heater will cost by multiplying the number of watts it uses by the price you pay per kilowatt-hour (kWh) and then dividing that number by 1,000.
For an electric water heater of 4,000-watt used for 3 hours a day at $.39 per kWh (Hawaii’s rate), the operating cost per day will be about $4.68, $140 monthly, and $1684 annually. The initial cost of purchasing an electric water heater will be further added.
We can say that if you own an electric water heater and shift towards a solar water heater then you can enjoy huge savings of more than $1500 just on operating costs. Isn’t it amazing? You can take back $1500 for an annual vacation or save for retirement, or invest in other sources.