2023 Solar Hot Water Heater Prices, Installation, Pros & Cons

Typical Cost To Install Hot a Water Heater Average: $895 - $1,137
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According to the Department of Energy, hot water use accounts for 14% to 18% of a homeowner’s utility bills.

To heat their water, homeowners have to deal with expensive gas and electricity bills every month. That’s just one of the reasons why more and more homeowners are switching to solar water heating. 

To install a new heater, contact your local plumbers for FREE ESTIMATES!

How Do Solar Water Heaters Work?

Solar water heaters work by exposing your water to the sun and directing it back into your home.

The tank and the solar collector are the two most essential components of a solar water heating system.

Cold water from the tank is pumped to the solar collector, which is installed on the roof. The solar collector is made up of photovoltaic elements that heat the water, which is then circulated back to the tank. 

On the other hand, traditional water heaters are powered by natural gas or electricity. These conventional methods use fossil fuels and coal, while solar water heaters use clean, renewable energy, which makes them better for the environment.

These energy-saving devices provide the household with enough hot water for the day. 

Solar Water Heater Price

Depending on the type and brand, a solar water heater can cost anywhere from $2,850 to $8,550.

The national average cost of a solar water heating system is $5,700.

Even though the upfront costs may be expensive, with solar heating you can reduce your water heating bills by 50% to 80%. 

If you want to know how much you have to set aside for a complete home solar system, there are a few factors you need to take into consideration:

Firstly, you need to think about how much shade your roof gets.

You also have to consider your monthly electricity bill. 

Thirdly, ask yourself if investing in solar power would pay off in your location.

Not all states are good candidates for solar energy. But if you live in California, Texas, North Carolina, Arizona, or Florida, you should receive enough sunny days yearly to make solar water heating a good investment. 

What Rebates And Incentives Are Available For Solar Water Heaters?

Residents who install solar panels are eligible for tax incentives and property tax exemptions.

But what about solar water heaters?

If homeowners install a solar water heater in 2023, their tax credit will be decreased by 22%, saving them $2,000 to $2,350.

This is known as the investment tax credit (ITC) or the federal solar tax credit.

If homeowners took advantage of this tax credit between 2020 and 2022, they could get a reduction of 26%. 

Pro Tip: You can check with your utility company or the state and local government for additional rebates. 

Selecting A Solar Water Heater 

There are many different designs and brands of solar water heating systems.

Active and passive heating systems are the two most common solar water heater types.

Your choice depends on the available space on your roof, how much sunshine you receive, and your budget. 

Type Cost
Active Solar Water Heaters $2,185-$5,700
Passive Solar Water Heaters $950-$3,515
Solar Water Tanks $950-$1,615
Solar Water Tanks With Heat Exchangers $1,140-$2,660
Solar Pool Heaters $2,375-$3,800

Active Solar Water Heating Systems

Active solar water heaters use circulating pumps to direct the water toward the solar collector and back to the tank.

They also need electricity to work.

There are two types of active solar water heating systems: direct and indirect circulating systems.

Direct systems use heat exchanger fluid, like antifreeze.

They can be installed in mild climates and are unsuitable for freezing temperatures.

On the other hand, indirect circulating systems use a non-freezing heat exchanger fluid and are better suited for freezing temperatures. 

Active solar water heating systems are more expensive than passive ones, with an average cost of $2,185 to $5,700.

They are more effective than passive systems. 

Passive Solar Water Heating Systems

Passive solar water heaters don’t rely on circulating pumps to move water but on gravity instead.

Even though they’re less effective than active systems, they tend to last longer.

They are available in two variants: integral collector storage and thermosyphon water heaters. 

Integral collector storage (ICS) heaters are also called batch solar heaters.

These types of heaters come with large storage tanks, which are integrated with the solar collector.

The hot water flows directly into the house’s plumbing.

Thermosyphon water heaters come with tanks installed on top of the solar collector.

These tanks can store up to 40 gallons of water, but the roof needs to be strong enough to hold the tank and the collector. 

Passive solar water heaters cost about $950 to $3,515.

Note that this price range only accounts for the unit, not the installation fee. 

Storage Tanks and Solar Collectors

When buying a solar water heater tank, you can choose one with or without a heat exchanger.

Basic solar water tanks cost from $950 to $1,615, while storage tanks with heat exchangers are sold for $1,140 to $2,660.

Also, make sure to take the gallon capacity into consideration, which can range from 60 to 120 gallons. 

A storage tank with 60 to 80 gallons should be sufficient if only two people are in the household. But if there are three to four family members, the storage tank should hold 80 to 100 gallons.

Larger tanks with 100 to 120-gallon storage tanks are ideal for households with five to six members. 

When it comes to solar collectors, they can cost from $950 to $2,660.

The collector’s size is measured in square feet.

You should also take into consideration how many people live in the household. The more people live there, the bigger the solar collector should be. 

Pro Tip: If you live in the northern part of the U.S., look for a collector measuring 40 to 96 square feet. But if you live in the southern part of the U.S., don’t choose a collector more than 72 square feet. 

Solar Water Heater Camping

Solar water heaters can also be portable and lightweight, so you can easily transport them wherever you want or take them on your next camping trip.

You can use them to take showers, make hot beverages, wash your hands, etc. 

Portable solar water heaters can be mounted on an exterior wall, on a vehicle, or even on the ground using a stand.

Since they are much smaller than regular solar water heaters, they’re also more affordable

Solar Water Heater for Home

When picking solar water heaters for your home, there are plenty of model and brand options.

But first, you have to do some research on solar water heating systems to determine which one would be able to meet your home’s water needs. 

Firstly, you must ensure your home is a good candidate for solar power.

If it isn’t exposed to enough sunlight, installing a solar water heater may not pay off.

Depending on the climate and average temperatures of where you live, you will need to choose between active and passive heating systems, which we explained above. 

You also need to figure out what size will be sufficient with the number of household members.

In order to make the most of solar energy, If you live in the northern hemisphere you should install the solar water heater on the south-facing side of the roof

Solar Water Heater for Pool

If you have a pool, you can use a solar pool heater to keep the water warm and enjoyable.

Solar pool heaters are similar to regular solar water heaters.

The solar collector of a pool heater is also installed on your roof. The only difference is that it’s connected to the pool filter, through which hot water is pumped. 

Solar pool heaters are also convenient because they can even cool the pool water during the hot summer months. It does this by circulating the pool water through the solar collector at night.

Solar pool heaters cost between $2,375 and $3,800

Did you know? Even though solar pool heaters cost more than gas pool heaters and heat pumps, they havelower operating costs

Solar Water Heater DIY

It’s possible to build your own solar water heater. You will need various tools for a DIY installation and necessary safety equipment.

To make your DIY solar water heater as effective as possible, you will need to place it on the correct side of your roof and connect it to your tank.

If you don’t know anything about plumbing, it might be a good idea to call a plumber for this part of the installation. 

However, building a DIY solar water heater is challenging and isn’t recommended if you don’t know what you’re doing. That’s why we recommend hiring a professional for the installation

Installing And Maintaining The System

Installing a solar water heating system requires structural, plumbing, and electrical work.

Professional technicians will also check to ensure your roof and home meet the minimum system installation standards.

In addition, they will know the ideal solar collector tilt and orientation so that the system can reach peak efficiency. 

When it comes to maintenance and repairs, there are two problems you need to look out for, which are scaling and corrosion.

These can cause issues if they are not caught in time.

If you have hard water, the mineral deposits can clog the system. You can install a water softener as a precaution.

As for the other potential problem, you should regularly do maintenance of your solar water heating system to prevent corrosion. 

It would be a good idea to hire professional technicians for annual inspections of your solar water heater.

Technicians can also check collector shading and soiling, glazing and seals, plumbing, ductwork, wiring connection, heat transfer fluids, and controls. 

What Are The Advantages Of A Solar Water Heater?

The most important advantage of solar water heaters, and the No. 1 reason homeowners install them, is that they can reduce your electricity bills.

By saving money on natural gas and electricity, homeowners see a 100% return on their investment after a couple of years. 

What’s also great about solar water heaters is that they’re good for the environment.

Natural gas and electricity generate greenhouse gas emissions.

On the other hand, solar water heaters don’t increase the home’s carbon footprint. Instead, they use renewable energy from the sun to heat water for your home. 

Another advantage of solar water heaters is that they require little maintenance.

Aside from annual checkups, all you need to do is have the antifreeze replaced once every few years, and that’s it. 

What Are The Disadvantages Of A Solar Water Heater?

One of the most significant disadvantages of a solar water heater is its relatively high upfront costs.

Some homeowners simply can’t afford them. 

Secondly, not all homes are good candidates for solar power.

If you don’t live in a sunny climate, installing a solar water heater wouldn’t pay off.

It may not be as efficient on foggy and cloudy days and at night. The water heater can eventually run out of power during extended periods without the sun.

Most homeowners deal with this issue by installing a backup heater, which increases the upfront costs even more. 

Keep in mind that solar water heaters aren’t like solar panels. They can only heat water, but they can’t power appliances. 

Solar Water Heater Companies

With the rising popularity of solar power, homeowners can choose from more and more solar water heater companies.

Some leading brands include Rheem, Duda Diesel, SunEarth, Apricus, Sunbank Solar, and Northern Lights Group.

These companies offer various solar water heating solutions, including active and passive water heating systems. 

Pro Tip: If you’re on a budget, Duda Diesel offers the most cost-effective prices for solar water heaters. The more expensive solar water heater companies include Northern Lights Group, Rheem, and SunEarth. 

Which Brand Of Solar Water Heater Is The Best?

The most popular solar water heater brand is Rheem.

Although much of the company’s popularity stems from its selection of solar water heaters and products, other water heating solutions are also available to homeowners.

These include heat pumps, gas tank types, electric tanks, combination boilers, and pool and spa heaters. In addition, it offers heating and cooling products for your home. 

Solar Hot Water Heaters vs Home Solar Systems

Some homeowners install a home solar system because they can make use of it for more than just hot water.

Solar panels can be used to power all the appliances in your house, but they are only 15% to 20% efficient at heating water.

On the other hand, solar water heaters are 70% to 90% efficient in converting the sun’s power to heat water. 

Not to mention that installing a home solar system is a much bigger investment. On average, solar panel installation costs range between $10,070 and $25,080.

Solar Water Heater vs Panel Cost
Solar Water Heater $950-$5700
Solar Panel Installation $10,070-$25,080

When To Use Solar Water Heater

You can use a solar water heater whenever you want because the system works all year round. It just might be less effective in winter and on cloudy days.

However, the solar collector has to be exposed to direct sunlight for at least four hours every day in order to have a full tank of hot water for 24 hours. 

Do Solar Water Heaters Work In Winter?

Solar water heaters should be able to heat your water even in winter when the temperature is cold. Of course, it will be much more effective in hot weather. 

Solar water heaters don’t only harvest direct sunlight, but they also diffuse indirect solar radiation.

This is good news for homeowners who don’t live in warm and sunny climates. 

Some solar water heating systems come with antifreeze, which is used to melt off the snow from the collector, so there is no obstacle between the system and the sun. 

How Long Does A Solar Water Heater Last?

Solar water heaters last 20 years on average. However, with proper periodic maintenance, they can last up to 30 years.

Compared to gas water heaters or electric tank heaters, which can last up to 15 years, installing a solar water heater pays off more. 

Are Solar Hot Water Heaters Worth It?

A solar water heater is worth the investment if you live in an area where it’s sunny most of the year, and your roof is exposed to direct sunlight. 

Solar water heaters have many more advantages than just reduced utility bills.

Installing a solar water heater reduces greenhouse gas emissions by 1.2 tons annually.

You can also apply for tax credits and other rebates.

Going solar will increase your home’s resale value by 2% to 6% if you plan on selling your house.

When you calculate all of these advantages, you will see that a solar water heater can give you a 100% return on investment. 

Pro Tip: To make sure your home is a good candidate for solar water heating, reach out to your local solar heating system supplier so that they can perform a solar site analysis.

Switch To Solar

Solar water heaters can reduce your energy bills, reduce your carbon footprint, increase your home’s value, and provide you with hot water all year round.

This investment pays off in more ways than one.

Consider installing a solar water heater for your home, especially if it’s a good candidate for solar power.


About Leo Bender

Leo has been a contractor since 2003, specializing in: roofing, siding, general contracting (GC) and residential remodeling. Leo is also a Certified HVAC, Oil & Gas Heating Technician/Installer. In addition to roofing and remodeling, Leo is passionate about Solar, green building and energy conservation, so a lot of my time and energy goes to installing energy efficient heating and cooling systems.


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